Olin's Net Income Surges Despite Missed Revenue Estimates
Olin Corporation (NYSE: OLN) has reported its third-quarter results, with revenue reaching $1.71 billion, slightly below analysts' estimates. Despite this, the company's net income surged to $42.8 million, surpassing expectations. Olin's shares, however, fell by 5.7% in after-hours trading.
Olin's Chlor Alkali Products and Vinyls division led the performance with $924 million in sales and $127.6 million in segment earnings. However, the Epoxy business remained in the red, and Winchester ammunition profits declined sharply. The company's adjusted EBITDA reached $222.4 million, boosted by a $32 million benefit from clean-hydrogen production tax credits under the Inflation Reduction Act.
Olin repurchased about 500,000 shares during the quarter for $10.1 million and has approximately $2 billion remaining under current buyback authorizations. The company ended the quarter with $140 million in cash and $2.85 billion in net debt, maintaining about $1.3 billion in available liquidity. Looking ahead, Olin projected fourth-quarter adjusted EBITDA of $110 million to $130 million, reflecting seasonal weakness and a $40 million hit from planned inventory reductions.
Olin's CEO, Ken Lane, stated that the company achieved sequentially higher earnings despite challenging market conditions and ongoing weakness in global epoxy demand. The company's net income reversal from a loss of $24.9 million in the same quarter a year earlier to a profit of $42.8 million is a notable achievement. However, Olin's shares fell in extended trading, indicating that investors may have been expecting stronger revenue growth.
