Company News
July 28, 2021
Olin Results
Olin Announces Second Quarter 2021 Results
Jul. 27, 2021 4:05 PM ETOlin Corporation (OLN)1 Comment
Q2: 2021-07-27 Earnings Summary
EPS of $2.26 beats by $0.79 | Revenue of $2.22B (78.96% Y/Y) beats by $105.10M
CLAYTON, Mo., July 27, 2021 /PRNewswire/ —
Second Quarter 2021 Highlights
- Net income of $355.8 million and record adjusted EBITDA of $559.2 million
- ECU Profit Contribution Index improved by 30% compared to first quarter
- Epoxy and Winchester achieved record quarterly segment earnings
Olin Corporation (OLN) announced financial results for the second quarter ended June 30, 2021.
Second quarter 2021 reported net income was $355.8 million, or $2.17 per diluted share, which compares to second quarter 2020 reported net loss of $120.1 million, or $0.76 per diluted share. Second quarter 2021 adjusted EBITDA of $559.2 million excludes depreciation and amortization expense of $142.0 million and restructuring charges of $14.0 million. Second quarter 2020 adjusted EBITDA was $71.5 million. Sales in the second quarter 2021 were $2,221.3 million compared to $1,241.2 million in the second quarter 2020.
Scott Sutton, Chairman, President and Chief Executive Officer, said, “Our performance in the second quarter continues to demonstrate the growing success of our unique winning model that prioritizes ‘value first.’ As predicted, we increased the Electrochemical Unit Profit Contribution Index (ECU PCI). Olin drove sequential pricing improvement in the second quarter 2021 for chlorine, chlorine derivatives, including epoxy resins, and caustic soda. Our Epoxy business continued to improve margins and delivered record quarterly segment results. Our Winchester business also delivered record quarterly segment results. Continuing to build on these successes in second half 2021, Olin now expects to deliver adjusted EBITDA of at least $2.1 billion for 2021. We expect Chlor Alkali Products and Vinyls, Epoxy and Winchester third quarter segment results to increase sequentially. Overall, we also expect third quarter 2021 adjusted EBITDA to improve sequentially from second quarter 2021 levels.”
SEGMENT REPORTING
Olin defines segment earnings as income (loss) before interest expense, interest income, goodwill impairment charges, other operating income (expense), non-operating pension income, other income, and income taxes.
CHLOR ALKALI PRODUCTS AND VINYLS
Chlor Alkali Products and Vinyls sales for the second quarter 2021 were $967.3 million compared to $651.2 million in the second quarter 2020. The increase in Chlor Alkali Products and Vinyls sales was primarily due to higher pricing and volumes. Second quarter 2021 segment earnings were $168.9 million compared to a segment loss of $57.0 million in the second quarter 2020. The $225.9 million increase in segment earnings was primarily due to higher pricing across all products and higher volumes. The segment earnings also reflected higher raw material and operating costs. Chlor Alkali Products and Vinyls second quarter 2021 results included depreciation and amortization expense of $114.5 million compared to $108.5 million in the second quarter 2020.
EPOXY
Epoxy sales for the second quarter 2021 were $850.0 million compared to $397.4 million in the second quarter 2020. The increase in Epoxy sales was primarily due to higher pricing and volumes. The second quarter 2021 segment earnings were $165.3 million compared to a segment loss of $13.0 million in the second quarter 2020. The $178.3 million increase in Epoxy segment earnings was primarily due to higher product margins, as higher pricing was partially offset by higher benzene and propylene raw material costs, and higher volumes. Segment earnings also reflected higher operating costs and maintenance turnaround costs. Epoxy second quarter 2021 results included depreciation and amortization expense of $20.3 million compared to $21.6 million in the second quarter 2020.
https://seekingalpha.com/pr/18410670-olin-announces-second-quarter-2021-results
July 27, 2021
Recticel First Half Results
1H2021 sales of EUR 596.2 million (+59.3%) – Full-year 2021 guidance confirmed
Regulated information, Brussels, 27/07/2021 — 07:00 CET, 27.07.2021
- 1H2021 net sales: from EUR 374.3 million to EUR 596.2 million (+59.3%)
- Net sales include FoamPartner as from 1 April 2021 (EUR 71.9 million over 2Q2021)
Based on unaudited information, 1H2021 net sales will amount to EUR 596.2 million compared to EUR 374.3 million in 1H2020 (+59.3%) and EUR 453.8 million in 1H2019 (+31.4%).
The main growth drivers are (i) strong demand in most markets, (ii) price increases to mitigate the substantial impact of higher raw material prices and (iii) the integration since April 2021 of the net sales of FoamPartner.
Olivier Chapelle (CEO): “The positive sales trend observed during 1Q2021 continued in 2Q2021, driven by very strong demand in Insulation and solid demand in Engineered Foams. In Bedding, volumes are improving due to the lifting of the mobility and business restrictions which still affected Germany during 2Q2021.
The chemical raw materials supply remains very tight due to planned maintenance and new force majeure incidents at the premises of our suppliers, affecting primarily the MDI availability. Normalization of the situation is difficult to predict, and we therefore continue to adapt pricing to compensate for the cost increases.
The integration of FoamPartner progresses as planned, and forecasted synergies at the horizon of 2023 are now expected to reach EUR 18 million versus EUR 14 million estimated previously. In the meantime the divestment process of the Bedding business has been launched, with non-binding offers expected before the end of July 2021.”
https://www.recticel.com/1h2021-sales-eur-5962-million-593-full-year-2021-guidance-confirmed.html
July 27, 2021
Recticel First Half Results
1H2021 sales of EUR 596.2 million (+59.3%) – Full-year 2021 guidance confirmed
Regulated information, Brussels, 27/07/2021 — 07:00 CET, 27.07.2021
- 1H2021 net sales: from EUR 374.3 million to EUR 596.2 million (+59.3%)
- Net sales include FoamPartner as from 1 April 2021 (EUR 71.9 million over 2Q2021)
Based on unaudited information, 1H2021 net sales will amount to EUR 596.2 million compared to EUR 374.3 million in 1H2020 (+59.3%) and EUR 453.8 million in 1H2019 (+31.4%).
The main growth drivers are (i) strong demand in most markets, (ii) price increases to mitigate the substantial impact of higher raw material prices and (iii) the integration since April 2021 of the net sales of FoamPartner.
Olivier Chapelle (CEO): “The positive sales trend observed during 1Q2021 continued in 2Q2021, driven by very strong demand in Insulation and solid demand in Engineered Foams. In Bedding, volumes are improving due to the lifting of the mobility and business restrictions which still affected Germany during 2Q2021.
The chemical raw materials supply remains very tight due to planned maintenance and new force majeure incidents at the premises of our suppliers, affecting primarily the MDI availability. Normalization of the situation is difficult to predict, and we therefore continue to adapt pricing to compensate for the cost increases.
The integration of FoamPartner progresses as planned, and forecasted synergies at the horizon of 2023 are now expected to reach EUR 18 million versus EUR 14 million estimated previously. In the meantime the divestment process of the Bedding business has been launched, with non-binding offers expected before the end of July 2021.”
https://www.recticel.com/1h2021-sales-eur-5962-million-593-full-year-2021-guidance-confirmed.html
July 22, 2021
Dow Urethane Comments from Investors Call
Dow Inc. (DOW) CEO Jim Fitterling on Q2 2021 Results – Earnings Call Transcript
Judging by the questions, it seems that the analysts are mainly interested in polyethylene . . .
Jim Fitterling
Thank you, Pankaj and thanks to everyone for joining us today. Starting on Slide 3, Dow continue to capture strong demand across our value chains during the second quarter. Team Dow is focused on execution, cost discipline and balanced capital allocation, enabled us to deliver our strongest quarterly earnings performance in the company’s history, both pre and post spin with substantial growth in net sales and earnings year-over-year and sequentially.
We achieved double-digit sales gains in all operating segments and businesses. A 66% increase in sales relative to the year-ago period, was led by local price improvement of 53% combined with a 9% volume increase. Robust demand and the recovery of the global economy continues from the onset of the COVID-19 pandemic.
Sales increased 17% sequentially, underpinned by tight supply and demand fundamentals across all of our value chain. We delivered higher operating EBIT of $2.8 billion year-over-year and $1.3 billion sequentially, with improvements in all segments and businesses. These gains were fueled by strong top line growth and margin expansion.
We also benefited from increased equity earnings, up more than $370 million year-over-year, led by higher margins at Sadara and the Kuwait joint ventures. Sequentially, equity earnings were up $54 million primarily from the Thai joint ventures.
Cash flow from operations was $2 billion and free cash flow was $1.7 billion, up significantly both year-over-year and sequentially. This enabled a valid execution of our capital allocation priorities. We continued our proactive liability management actions by reducing gross debt by more than $1 billion in the quarter, and reducing our annual interest expense by $35 million. Today Dow has no substantial long-term debt maturities due until the end of 2025.
We also returned more than $700 million to shareholders in the quarter through our industry-leading dividend and we resumed our share buyback program to cover dilution. Finally, we continue to advance Dow’s ESG priorities by releasing our consolidated ESG report, INtersections, which provides enhanced transparency on our environmental, social and governance priorities. The interactive digital report can be found at the top of our corporate website.
In summary, Team Dow maintained a relentless focus on meeting increasing customer demand despite lingering supply impacts across many value chains and marking a strong rebound from Winter Storm Uri. We continue to execute on our operational and financial playbook, delivering another strong quarter and a solid first half performance.
The Polyurethanes & Construction Chemicals business increased net sales compared to the year-ago period on strong local price in all value chains, demand recovery and durable goods and appliances and construction end markets and currency tailwinds. Despite industry supply chain challenges across a number of end markets, including mobility, the business delivered sequential sales growth on increased local price and volumes.
Howard Ungerleider
Moving to Industrial Intermediates & Infrastructure, strong consumer demand for durable goods continues underpinned by order strength throughout the value chain. Housing and construction markets particularly in the U.S continue to support robust demand for polyurethane applications. Industrial and oil related and markets are expected to continue to see gradual recovery sequentially, providing additional support for solvents and other industrial solutions. We also expect $30 million of additional planned maintenance turnaround spending at our joint ventures in the quarter.
Kevin McCarthy
Yes. Good morning. Jim, I wanted to ask you about industrial intermediates where your operating income more or less doubled sequentially. Two parts. Can you talk about the upside relative to your expectations 3 months ago? How much might have been polyurethanes versus other industrial chemicals? And then given that momentum and your sales forecast of flat to up 3%, do you have a strong view today as to whether third quarter could be flat, up or down profit wise sequentially?
Jim Fitterling
Good — that’s a good question. In Industrial Intermediates & Infrastructure on the polyurethane side, we saw strong demand for both polyols and isocyanates in the polyurethane side and in construction chemicals for chemicals that are made from those raw materials going into not only single-family homes, but also larger construction like commercial construction. I think those demands are going to continue to stay strong and the supply demand will continue to be tight. You saw strong pricing in both PO as well as isocyanates. There’s not a lot of new capacity coming on in that space.
And then additionally, in ethylene oxide and ethylene oxide derivatives in the industrial solutions business, those end markets are continuing to grow. And on top of that, we’ve several new capacity adds that are coming for things like pharmaceutical incipient, a product called polyethylene glycol that we just made an expansion on, we’ve got some other materials coming through there. And we have a host of low VOC solvents in that portfolio that go into the coatings sector.
So around the world, as coatings move away from traditional organic solvents into waterborne or lower VOC solvents, that benefits our portfolio. That same trend, by the way, helps us in cleaning chemicals or cleaning products that you might use in your home, and we see that both from a brand owner and an industrial side as well. So I think those will continue our expectation on third quarter in those businesses are very similar to second quarter.
July 22, 2021
Dow Urethane Comments from Investors Call
Dow Inc. (DOW) CEO Jim Fitterling on Q2 2021 Results – Earnings Call Transcript
Judging by the questions, it seems that the analysts are mainly interested in polyethylene . . .
Jim Fitterling
Thank you, Pankaj and thanks to everyone for joining us today. Starting on Slide 3, Dow continue to capture strong demand across our value chains during the second quarter. Team Dow is focused on execution, cost discipline and balanced capital allocation, enabled us to deliver our strongest quarterly earnings performance in the company’s history, both pre and post spin with substantial growth in net sales and earnings year-over-year and sequentially.
We achieved double-digit sales gains in all operating segments and businesses. A 66% increase in sales relative to the year-ago period, was led by local price improvement of 53% combined with a 9% volume increase. Robust demand and the recovery of the global economy continues from the onset of the COVID-19 pandemic.
Sales increased 17% sequentially, underpinned by tight supply and demand fundamentals across all of our value chain. We delivered higher operating EBIT of $2.8 billion year-over-year and $1.3 billion sequentially, with improvements in all segments and businesses. These gains were fueled by strong top line growth and margin expansion.
We also benefited from increased equity earnings, up more than $370 million year-over-year, led by higher margins at Sadara and the Kuwait joint ventures. Sequentially, equity earnings were up $54 million primarily from the Thai joint ventures.
Cash flow from operations was $2 billion and free cash flow was $1.7 billion, up significantly both year-over-year and sequentially. This enabled a valid execution of our capital allocation priorities. We continued our proactive liability management actions by reducing gross debt by more than $1 billion in the quarter, and reducing our annual interest expense by $35 million. Today Dow has no substantial long-term debt maturities due until the end of 2025.
We also returned more than $700 million to shareholders in the quarter through our industry-leading dividend and we resumed our share buyback program to cover dilution. Finally, we continue to advance Dow’s ESG priorities by releasing our consolidated ESG report, INtersections, which provides enhanced transparency on our environmental, social and governance priorities. The interactive digital report can be found at the top of our corporate website.
In summary, Team Dow maintained a relentless focus on meeting increasing customer demand despite lingering supply impacts across many value chains and marking a strong rebound from Winter Storm Uri. We continue to execute on our operational and financial playbook, delivering another strong quarter and a solid first half performance.
The Polyurethanes & Construction Chemicals business increased net sales compared to the year-ago period on strong local price in all value chains, demand recovery and durable goods and appliances and construction end markets and currency tailwinds. Despite industry supply chain challenges across a number of end markets, including mobility, the business delivered sequential sales growth on increased local price and volumes.
Howard Ungerleider
Moving to Industrial Intermediates & Infrastructure, strong consumer demand for durable goods continues underpinned by order strength throughout the value chain. Housing and construction markets particularly in the U.S continue to support robust demand for polyurethane applications. Industrial and oil related and markets are expected to continue to see gradual recovery sequentially, providing additional support for solvents and other industrial solutions. We also expect $30 million of additional planned maintenance turnaround spending at our joint ventures in the quarter.
Kevin McCarthy
Yes. Good morning. Jim, I wanted to ask you about industrial intermediates where your operating income more or less doubled sequentially. Two parts. Can you talk about the upside relative to your expectations 3 months ago? How much might have been polyurethanes versus other industrial chemicals? And then given that momentum and your sales forecast of flat to up 3%, do you have a strong view today as to whether third quarter could be flat, up or down profit wise sequentially?
Jim Fitterling
Good — that’s a good question. In Industrial Intermediates & Infrastructure on the polyurethane side, we saw strong demand for both polyols and isocyanates in the polyurethane side and in construction chemicals for chemicals that are made from those raw materials going into not only single-family homes, but also larger construction like commercial construction. I think those demands are going to continue to stay strong and the supply demand will continue to be tight. You saw strong pricing in both PO as well as isocyanates. There’s not a lot of new capacity coming on in that space.
And then additionally, in ethylene oxide and ethylene oxide derivatives in the industrial solutions business, those end markets are continuing to grow. And on top of that, we’ve several new capacity adds that are coming for things like pharmaceutical incipient, a product called polyethylene glycol that we just made an expansion on, we’ve got some other materials coming through there. And we have a host of low VOC solvents in that portfolio that go into the coatings sector.
So around the world, as coatings move away from traditional organic solvents into waterborne or lower VOC solvents, that benefits our portfolio. That same trend, by the way, helps us in cleaning chemicals or cleaning products that you might use in your home, and we see that both from a brand owner and an industrial side as well. So I think those will continue our expectation on third quarter in those businesses are very similar to second quarter.
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