Olin Corp. (OLN) Misses Q4 EPS by 12c, Revenues Beat

Olin Corp. (NYSE: OLN) reported Q4 EPS of ($0.21), $0.12 worse than the analyst estimate of ($0.09). Revenue for the quarter came in at $1.65 billion versus the consensus estimate of $1.45 billion.

Fourth Quarter 2020 Highlights

• Fourth quarter 2020 net loss of $33.0 million and adjusted EBITDA of $246.2 million
• ECU Profit Contribution Index improved by 6% in fourth quarter compared to third quarter
• Winchester achieved record quarterly segment earnings

Scott Sutton, President and Chief Executive Officer, said, "I am proud of the Olin team for their success in implementing our unique winning model and leading by prioritizing 'value first' across the ECU (Electrochemical Unit), even in a sub-optimal market configuration for Olin. As predicted, we increased the ECU Profit Contribution Index (ECU PCI) in the face of softening caustic values. Olin drove sequential pricing improvement in the fourth quarter 2020 for chlorine and almost all chlorine derivatives, including epoxy resins. Our Winchester business delivered the strongest quarterly earnings in its history due to outstanding execution by the team, with even higher performance expected in 2021.

"Looking ahead to first quarter 2021 in our Chemicals businesses, and particularly in Epoxy, we expect our winning model to push the ECU PCI higher, with Olin's recent price increase announcements for chlorine, epichlorohydrin, epoxy resins, bleach, ethylene dichloride and chlorinated organics forecast to positively contribute. We expect some volume offsets as Olin continues to selectively sell less into poor quality markets, as we remain disciplined in our approach to caustic soda. Additionally, productivity actions are expected to favorably contribute to first quarter 2021 results. Overall, we expect first quarter 2021 adjusted EBITDA to improve sequentially from fourth quarter 2020."

For earnings history and earnings-related data on Olin Corp. (OLN) click here.

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