Olin Corp (OLN) Reports Q3 2023 Earnings
Olin Corp (NYSE:OLN) reported a net income of $104.1 million for Q3 2023, down from $315.2 million in Q3 2022.
The company's Q3 2023 sales were $1,671.4 million, a decrease from $2,321.7 million in Q3 2022.
Olin Corp (NYSE:OLN) repurchased shares worth $202.1 million in Q3 2023.
The company's adjusted EBITDA for Q3 2023 was $314.8 million.
On October 26, 2023, Olin Corp (NYSE:OLN) announced its financial results for the third quarter ended September 30, 2023. The company reported a net income of $104.1 million, or $0.82 per diluted share, compared to a net income of $315.2 million, or $2.18 per diluted share, in the third quarter of 2022. The company's sales for the third quarter of 2023 were $1,671.4 million, a decrease from $2,321.7 million in the same period of the previous year.
Financial Performance
The company's Chlor Alkali Products and Vinyls segment reported sales of $969.6 million for Q3 2023, down from $1,263.5 million in Q3 2022. The Epoxy segment reported sales of $321.6 million, a decrease from $644.1 million in the same period of the previous year. The Winchester segment reported sales of $380.2 million for Q3 2023, down from $414.1 million in Q3 2022.
Olin Corp (NYSE:OLN) repurchased approximately 3.7 million shares of common stock at a cost of $202.1 million during the third quarter of 2023. The company ended the quarter with a net debt of approximately $2.6 billion and a net debt to adjusted EBITDA ratio of 1.7 times.
Company's Outlook
Despite the declining demand environment, Olin Corp (NYSE:OLN) continues to demonstrate the resilience of its business model. The company is focusing on actions to improve its performance in 2024. It has taken steps to reduce its operating rates, thereby reducing its market participation and accelerating a favorable inflection point. This initiative is expected to reduce the company's Q4 2023 adjusted EBITDA outlook by approximately $100 million compared to previous expectations. However, it is anticipated to deliver an improved 2024 adjusted EBITDA compared to 2023.
Financial Tables
The company's balance sheet as of September 30, 2023, showed total assets of $7,815.2 million, total liabilities of $5,447.7 million, and total equity of $2,367.5 million. The company's cash and cash equivalents were $158.3 million. The company's consolidated statement of operations showed a net income attributable to Olin Corporation of $104.1 million for Q3 2023.
Conclusion
Olin Corp (NYSE:OLN) reported a decrease in net income and sales for Q3 2023 compared to the same period in the previous year. However, the company continues to demonstrate the resilience of its business model and is taking steps to improve its performance in the future.
Explore the complete 8-K earnings release (here) from Olin Corp for further details.
This article first appeared on GuruFocus.
