MOSCOW (MRC) -- Olin reported a decrease in third-quarter net income after costs surged and sales ticked slightly lower, said the company.
The following table shows the company's financial performance. Figures are in millions of dollars. President and CEO Scott Sutton said the company is experiencing “recessionary global economic conditions”.
“While our chemical businesses have been challenged by European and North American epoxy and vinyls intermediate demand shortfalls and increased Asian exports, the core electrochemical unit (ECU) pricing for merchant chlorine and caustic soda continued to move higher,” Sutton said.
Sutton said he anticipates chlor-alkali products and vinyls Q4 segment results will come in slightly lower than Q3 levels on the expectation that chlorine and caustic soda pricing will continue to improve, while vinyls intermediates pricing is likely to remain under pressure.
“Our epoxy segment fourth quarter results are expected to seasonally decline from third quarter 2022 levels, exacerbated by increased Chinese exports precipitated by continuing weak Chinese domestic demand,” Sutton said.
Overall, the company expects Q4 2022 adjusted EBITDA to decline approximately 15% to 20% from Q3 levels.
We remind, Olin Corporation announced that it expects to cease methylene chloride and chloroform production at its Stade, Germany facility by third quarter 2023. Olin will continue to produce both products at its Freeport, Texas facility.
Olin Corporation is a leading vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid. Winchester's principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.