NYSE$OLN
Olin Corp · Q4 2019 earnings
Q4 2019 earnings · · Investor relations
Briefing
Olin reported a net loss and a decrease in sales compared to the same quarter last year, but Winchester segment earnings improved year-over-year.
Olin Corporation reported a net loss of $77.2 million for Q4 2019, a significant drop from the net income of $53.3 million in Q4 2018. Sales also decreased from $1,635.0 million to $1,387.1 million. Adjusted EBITDA was $173.2 million, excluding certain charges. The decrease in sales and earnings was primarily due to weaker demand and lower pricing in the Chlor Alkali Products and Vinyls and Epoxy businesses.
- Olin reported a net loss of $77.2 million in Q4 2019, compared to a net income of $53.3 million in Q4 2018.
- Sales decreased to $1,387.1 million from $1,635.0 million in the same quarter last year.
- Adjusted EBITDA was $173.2 million, excluding depreciation, restructuring charges, and IT integration costs.
- Winchester segment earnings improved year-over-year due to higher commercial sales.
Headline financials
Revenue & EPS history
Olin · Revenue · Quarterly
$1.39B
Revenue by segment
Olin · $1.39B total across 3 segments · Q4 2019
- Chlor Alkali Products and Vinyls$762M-22.3%55.0%
- Epoxy$470M-7.6%33.9%
- Winchester$155M+6.3%11.2%
Forward guidance
Olin expects to face a challenging pricing environment entering 2020 but anticipates cost containment and productivity initiatives to partially offset the pricing pressures. Several initiatives are expected to create long-term improvement in cash flow during 2020, including refinancing high-cost bonds, winding down the IT integration project, transitioning the vinyl chloride monomer contract, and the new Lake City ammunition facility contract.
Tailwinds
- Refinancing of high-cost bonds expected to reduce interest expense by $50 million to $70 million annually.
- Winding down the IT integration project will reduce annual spending by approximately $110 million.
- Vinyl chloride monomer contract transitioning to a direct customer sale agreement beginning January 1, 2021.
- Lake City ammunition facility contract is expected to increase Winchester’s annual revenue by $450 million to $550 million.
- Lake City ammunition facility contract is expected to improve annual adjusted EBITDA of $40 million to $50 million.
Headwinds
- Olin continues to face a challenging pricing environment as we enter 2020.
- Caustic soda and ethylene dichloride pricing in January 2020 is expected to be approximately 15% lower than the average 2019 price.
- The Chlor Alkali Products and Vinyls business experienced weaker demand from urethane, agricultural, refrigerant, alumina, and pulp and paper customers.
- The Epoxy business also has faced weaker product demand from automotive, electrical laminate, and industrial coatings customers throughout 2019.
- Lower demand environment put downward pressure on pricing in both chemical businesses.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q4 2019
-0.8%
Avg return
Earnings day
+1.6%
Avg return
5 days after
+3.7%
Avg return
30 days after
43%
29 / 67 earnings
Positive
+12.1%
Q4 2016
Best reaction
-15.7%
Q4 2015
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +0.4% | +6.2% | -8.2% | |
| Q4 2025 | -6.8% | +13.9% | +13.6% | |
| Q3 2025 | -12.5% | -13.8% | -13.5% | |
| Q1 2025 | +2.4% | -5.8% | -10.3% | |
| Q3 2024 | -8.1% | -9.3% | -4.9% | |
| Q2 2024 | -5.6% | -4.0% | -5.9% | |
| Q1 2024 | +0.8% | -1.5% | +2.5% | |
| Q4 2023 | +8.6% | +5.3% | +3.5% | |
| Q3 2023 | -6.3% | -4.9% | +5.6% | |
| Q2 2023 | +4.4% | +4.2% | +4.5% | |
| Q1 2023 | +4.3% | +2.3% | -4.8% | |
| Q4 2022 | +9.1% | +12.5% | +4.0% | |
| Q3 2022 | +5.8% | +7.0% | +17.0% | |
| Q2 2022 | +5.7% | +4.2% | +14.2% | |
| Q1 2022 | +9.9% | +18.7% | +28.0% | |
| Q4 2021 | -3.6% | +3.3% | +2.8% | |
| Q3 2021 | +8.3% | +11.5% | +15.7% | |
| Q2 2021 | +4.6% | +6.4% | +8.3% | |
| Q1 2021 | +1.3% | +3.5% | +18.4% | |
| Q4 2020 | +0.3% | +11.7% | +29.7% | |
| Q3 2020 | +10.4% | +11.3% | +24.3% | |
| Q2 2020 | -1.0% | -1.4% | +5.6% | |
| Q1 2020 | -12.3% | -21.3% | -21.0% | |
| Q4 2019 | +9.2% | +6.6% | -7.0% | |
| Q3 2019 | -5.1% | +0.0% | -9.1% | |
| Q2 2019 | -7.5% | -12.0% | -17.7% | |
| Q1 2019 | -6.0% | -5.0% | -9.7% | |
| Q4 2018 | +8.1% | +1.5% | +0.5% | |
| Q3 2018 | -2.3% | +6.2% | +6.2% | |
| Q2 2018 | +2.4% | +4.3% | +7.1% | |
| Q1 2018 | +2.0% | +4.8% | +7.1% | |
| Q4 2017 | -6.1% | -13.7% | -8.4% | |
| Q3 2017 | +3.2% | +0.2% | -0.2% | |
| Q2 2017 | -0.2% | +3.4% | +6.0% | |
| Q1 2017 | -5.0% | -8.1% | -7.9% | |
| Q4 2016 | +12.1% | +17.9% | +21.1% | |
| Q3 2016 | -0.1% | -3.0% | +18.4% | |
| Q2 2016 | -1.0% | -0.3% | +3.5% | |
| Q1 2016 | +1.7% | — | — | |
| Q4 2015 | -15.7% | — | — | |
| Q3 2015 | +3.9% | — | — | |
| Q2 2015 | -0.9% | — | — | |
| Q1 2015 | -0.3% | — | — | |
| Q4 2014 | +5.1% | — | — | |
| Q3 2014 | -7.2% | — | — | |
| Q2 2014 | -1.5% | — | — | |
| Q1 2014 | -3.2% | — | — | |
| Q4 2013 | -4.0% | — | — | |
| Q3 2013 | +2.0% | — | — | |
| Q2 2013 | -1.8% | — | — | |
| Q1 2013 | -4.9% | — | — | |
| Q4 2012 | -3.0% | — | — | |
| Q3 2012 | -2.8% | — | — | |
| Q2 2012 | -9.6% | — | — | |
| Q1 2012 | -1.0% | — | — | |
| Q4 2011 | -0.2% | — | — | |
| Q4 2008 | -0.2% | — | — | |
| Q3 2011 | -11.8% | — | — | |
| Q2 2011 | -1.7% | — | — | |
| Q1 2011 | -5.4% | — | — | |
| Q1 2010 | -5.4% | — | — | |
| Q4 2010 | +0.2% | — | — | |
| Q3 2010 | -5.6% | — | — | |
| Q3 2009 | -5.6% | — | — | |
| Q4 2009 | +1.5% | — | — | |
| Q2 2010 | +1.5% | — | — | |
| Q2 2009 | +1.5% | — | — |
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