Olin Takes Goodwill Impairment Charge
Olin to take ~$700M non-cash goodwill impairment charge
Olin (NYSE:OLN) expects its Q3 financial results will include a ~$770M non-cash pretax impairment charge related to goodwill, primarily the result of Olin’s sustained lower stock price during 2020.
Olin says the goodwill impairment charge includes $555M related to the Chlor Alkali Products and Vinyls segment and $145M related to the Epoxy segment.
Yesterday, Wells Fargo raised its stock price target on Olin to $15 from $13, citing a more optimistic near-term outlook given pricing and volume improvement.
Olin has enjoyed better than expected sequential improvement in ethylene dichloride pricing, which should have a strong impact on its earnings in the coming quarter, Wells says.
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