Urethane Blog

Olin Results

July 28, 2021

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/ —

https://mma.prnewswire.com/media/717484/OlinLogo.jpg

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

RSS Sign Up for Email Updates