Has me re-thinking my position::
Olin Announces Third Quarter Earnings
Tuesday October 30, 7:34 pm ET
CLAYTON, Mo.--(BUSINESS WIRE)--Olin Corporation (NYSE: OLN - News) announced today that income from continuing operations in the third quarter of 2007 was $32.7 million, or $0.44 per diluted share, compared with income from continuing operations of $50.7 million, or $0.70 per diluted share in the third quarter of 2006. Third quarter 2007 earnings include the September results of the Pioneer business acquired on August 31, 2007. Operating income in the third quarter 2007 of $48.6 million increased 24% from the third quarter 2006 level of $39.3 million. Third quarter 2006 earnings include a $24.8 million reduction in income tax expense associated with the settlement of the tax treatment of capital losses generated in 1997 and other tax matters. Sales from continuing operations in the third quarter of 2007 were $350.3 million, compared with $273.7 million in the third quarter of 2006.
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Joseph D. Rupp, Chairman, President, and Chief Executive Officer, said, “The third quarter of 2007 was an important one for Olin. On August 31, we closed on the $426 million acquisition of Pioneer, and on October 15, we announced that we had signed a definitive agreement to sell our Metals business for $400 million. These actions strategically position Olin as a leading chlor alkali and ammunition manufacturer with financial flexibility.”
“We experienced strong performance in both our Chlor Alkali and Winchester businesses during the third quarter. Chlor Alkali segment earnings were $70.7 million, which included an $8.3 million contribution for the month of September from the Pioneer operations. Olin’s third quarter 2007 ECU netbacks improved compared to the second quarter and were about equal to the third quarter 2006. We expect a slight improvement in ECU netbacks in the fourth quarter. Winchester’s results reflect both improved pricing and strong volumes. These favorable Chlor Alkali and Winchester operating results were partially offset by higher environmental expenses reflecting projected cost increases at a former waste disposal site. We now expect full-year environmental expenses to be in the $35 million range.”
In the fourth quarter of 2007, we anticipate earnings per share from continuing operations in the $0.30 per diluted share range. In Chlor Alkali, seasonally weak volumes and the impact of scheduled maintenance outages at five facilities will more than offset the inclusion of the Pioneer operating results for the entire quarter. Winchester expects a small loss in the seasonally weak fourth quarter. Fourth quarter environmental expenses are expected to decline from third quarter levels. |
