Olin Corporation – OLN – During the third quarter of 2012, achieved several significant milestones

Olin Corporation (NYSE: OLN) announced that its third quarter 2012 net income was $28.7 million, or $0.35 per diluted share, which compares to $47.2 million, or $0.58 per diluted share in the third quarter of 2011.  OLN Sales in the third quarter of 2012 were $581.2 million, compared to $550.2 million in the third quarter of 2011.  Third quarter 2012 results included $47.6 million of sales and $1.9 million of pretax segment income associated with the new Chemical Distribution segment created by the acquisition of K. A. Steel Chemicals Inc. on August 22, 2012.

Joseph D. Rupp, Chairman, President, and Chief Executive Officer said, “During the third quarter of 2012, Olin achieved several significant milestones.  The acquisition of KA Steel was completed and we believe it will enhance the profitability of Olin and our commodity chemical business, while improving Olin’s performance at all points of the economic cycle.  The second HyPure^® bleach plant, which is located at the Niagara Falls, New York facility, was successfully started up and is now running at design rate.  Mercury cell chlor alkali production at the Augusta, Georgia facility was discontinued at the end of September, and the first of the two new membrane cell rooms at the Charleston, Tennessee chlor alkali plant was successfully started up.  The second membrane cell room at Charleston is expected to startup in November, and this will complete Olin’s exit from chlor alkali production using mercury cell technology.  Finally, the Winchester centerfire relocation began to generate positive returns, as the cost savings being generated at the new Oxford, Mississippi facility exceeded the additional costs associated with operating in two locations.”

Third quarter 2012 net income included $8.3 million of pretax transaction costs related to the acquisition and a one-time $1.1 million pretax charge required to eliminate OLN’s profit on intercompany sales of caustic soda to KA Steel.  During the third quarter of 2012, $4.9 million of one-time costs associated with two plant startups in the Chlor Alkali business were expensed.  As a result of these startups, planned third quarter maintenance outages in Chlor Alkali were delayed until the fourth quarter.  Third quarter 2012 net income also included a $2.3 million pretax restructuring charge primarily associated with the ongoing Winchester centerfire ammunition relocation project and $1.2 million of unfavorable tax adjustments.  Third quarter 2011 net income included a $4.1 million pretax restructuring charge associated with the Winchester centerfire relocation project and the Chlor Alkali mercury cell transition projects and $2.2 million of favorable tax adjustments.

Mr. Rupp also said, “Third quarter 2012 earnings in our Chlor Alkali business declined compared to the third quarter of 2011 due to lower chlorine and caustic soda volumes and lower ECU netbacks.  These declines more than offset increased bleach and potassium hydroxide volumes and improved hydrochloric acid pricing.  Third quarter 2012 bleach shipments of 50,000 ECUs set a record.  Winchester third quarter 2012 segment earnings improved compared to the third quarter of 2011 segment earnings due to improved pricing and lower commodity costs.

About Olin Corporation – OLN

Olin Corporation (OLN) is a manufacturer concentrated in three business segments:  Chlor Alkali Products, Chemical Distribution and Winchester.  Chlor Alkali Products manufactures chlorine and caustic soda, hydrochloric acid, hydrogen, bleach products and potassium hydroxide.  Chemical Distribution manufactures bleach products and distributes caustic soda, bleach products, potassium hydroxide and hydrochloric acid.  Winchester products include sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.