Olin Corporation Earnings Report

CLAYTON, Mo. – Olin Corporation (NYSE:OLN) reported a significant earnings miss for the third quarter of 2024, leading to a 14% drop in share prices as the chemical manufacturer managed the impacts of Hurricane Beryl and declining demand in its ammunition sector.

The company recorded a net loss of $24.9 million, equating to -$0.21 per share for the quarter ending September 30. This was considerably below analyst forecasts of $0.04 per share. Revenue totaled $1.59 billion, slightly exceeding the consensus estimate of $1.58 billion, but representing a 4.9% decline from $1.67 billion during the same quarter the previous year.

Olin's financial performance was heavily influenced by Hurricane Beryl, which incurred approximately $110 million in extra costs and lost sales in the third quarter. The company now anticipates the total fiscal impact of the hurricane to reach about $135 million for the entirety of 2024.

> "During the third quarter, our Olin team worked tirelessly to recover from the effects of Hurricane Beryl," said Ken Lane, President and CEO. "However, despite the team's hard work, persistent operating limitations related to the hurricane necessitated an additional outage."

The Winchester ammunition segment also fell short of expectations amid weak commercial sales. Lane pointed out that retail customers were facing lower sales and high inventory levels, resulting in slower restocking rates.

Looking ahead, Olin anticipates fourth-quarter adjusted EBITDA guidance of $170 million to $200 million, indicating ongoing challenges due to the hurricane's effects and seasonal declines in ammunition demand.

Despite these challenges, Lane reaffirmed the company's commitment to a value-focused commercial model and capital allocation strategy, stating, "Olin remains disciplined in our approach, which continues to drive cash flows and enables our priority to return cash to shareholders."

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