Olin Corporation (NYSE:OLN) shares were up 1.88% on Thursday when approximately 4.08M shares were traded, against the average daily trading volume of 1.96M. Analysts at Credit Agricole recently upgraded the stock to Underperform from Buy. Olin Corporation (NYSE:OLN) has a consensus buy rating, according to Zacks Investment Research. 1 analyst has rated the stock with a sell rating, 0 have assigned a hold rating, Zero says it’s a buy, and 3 have assigned a strong buy rating to the company.
The 52-week price range is $11.95-$30.00 and the company has a market capitalization of $4.94 billion.
Olin Corporation (OLN) on February 1, 2017 announced financial results for the fourth quarter ended December 31, 2016.
The fourth quarter 2016 reported net income was $17.5 million, or $0.10 per diluted share. Fourth quarter 2016 adjusted EBITDA of $221.7 million reflects depreciation and amortization expense of $136.1 million, restructuring charges of $6.7 million, and acquisition-related integration costs of $9.2 million. Adjusted net income from operations was $0.31 per diluted share, which excludes the aforementioned restructuring charges, acquisition-related integration costs and step-up depreciation and amortization expense of $40.3 million. Sales in the fourth quarter 2016 were $1,385.7 million.
John E. Fischer, President and Chief Executive Officer, said, “Our fourth quarter 2016 adjusted EBITDA reflects better than expected results in the Chlor Alkali Products and Vinyls segment, which more than offset weaker than expected results in the Epoxy segment. The favorable results in Chlor Alkali Products and Vinyls were primarily the result of favorable cost performance, while the shortfall in Epoxy results reflects softer demand from coatings customers. Winchester’s fourth quarter 2016 segment earnings exceeded 2015 earnings due to higher sales volumes and lower operating costs. Full year 2016 adjusted EBITDA was $838.5 million.
“In 2017, we expect adjusted EBITDA of approximately $1 billion with upside opportunities and downside risks of approximately 5%. Due to a heavy maintenance turnaround schedule, we expect the first quarter of 2017 to be the lowest adjusted EBITDA quarter of the year. First quarter 2017 planned maintenance turnaround expenses are forecast to be approximately $10 million higher than the first quarter of 2016 and approximately $15 million higher than the fourth quarter of 2016.
“We enter 2017 with favorable caustic soda and ethylene dichloride pricing trends. Caustic soda price indices have increased for nine consecutive months and we are optimistic that some portion of the $40 per ton price increase announced for January 1 will be realized. We are forecasting that first quarter 2017 ethylene dichloride pricing should be approximately 25% higher than full year 2016 levels. In spite of the weaker than expected fourth quarter 2016 Epoxy results and increased raw materials costs associated with benzene and propylene pricing, we expect 2017 Epoxy results to improve compared to 2016. We are cautious about the Winchester business, which may experience a year-over-year decline in segment earnings as a result of lower ammunition demand, driven by customer efforts to reduce inventory, and higher commodity and material costs.”
