Olin beats out estimates but almost swings to loss on weak epoxy results

Olin Corp. (Clayton, Missouri) reported first-quarter net income of $1.4 million, down from $48.6 million, as strong margins in the chlor-alkali and vinyls segment were offset by weak results in the epoxy and Winchester segments, as per Chemweek.

Revenue totaled $1.644 billion, up 0.5% year over year from $1.644 billion. Adjusted earnings per share came to 1 cent, beating the consensus estimate of a 10-cent loss, as compiled by S&P Capital IQ.

“Despite the uncertain economic environment, we remain focused on the things within our control. We now expect to deliver year-over-year cost savings of $50 [million] to $70 million, an increase over our previous outlook. We have also lowered our annual capital spending estimate by approximately $25 million,” Olin President and CEO Ken Lane, said.

The company expects second-quarter results to be similar to the first quarter despite increased second-quarter costs from a delayed planned maintenance turnaround in its chlor-alkali product and vinyls segment. The delay was due to tight industry supply and supporting under-supplied customers, the company said.

“We expect the direct impact from current tariffs on Olin to not be significant, as headwinds are largely offset by the opportunities realized. Second-quarter 2025 adjusted EBITDA is expected to be in the range of $170 million to $210 million,” Lane said.

The chlor-alkali products and vinyls segment turned in earnings of $78.3 million, up 2.2% year over year from $76.6 million on higher volumes, partially offset lower pricing (primarily in ethylene dichloride) and higher operating costs. Sales totaled $924.5 million, up 4.5% from $884.6 million on higher volumes. The company expects the segment to be boosted by seasonal volume improvement and strengthening caustic soda.

The epoxy segment reported a loss of $28.4 million, down from a loss of $11.8 million in the year-ago period, primarily due to higher operating costs. Sales totaled $331.7 million, down 2.8% year over year from $341.3 million. “Global epoxy demand remains weak, and our US and European epoxy business continues to be significantly challenged by subsidized Asian competition, given antidumping initiatives have provided limited benefits,” Lane said.

The Winchester ammunition segment turned in earnings of $22.8 million, down 68.4% year over year compared to $72.2 million, on sales of $388.0 million, down 5.2% from $409.4 million. Olin expects Winchester results to improve sequentially as seasonal demand picks up.

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Linde PLC reported first-quarter net income of $1.67 billion, up 3% year over year. Sales were $8.11 billion, flat year over year and down 2% sequentially, as per Chemweek.

Prices were up 2%, partially offset by 1% lower volumes driven by the manufacturing and metals and mining end markets.

Reported adjusted earnings were $3.95 per share, up 5% year over year and three cents above consensus analysts’ estimates, as reported by S&P Capital IQ.

“Looking at the current environment, we’re seeing more negative than positive developments,” Sanjiv Lamba, Linde CEO said. “We are still seeing strength in China in battery and electronics, although rare gases and helium prices remained lower than prior year. The Americas segment has been more of a mixed bag. Canada and US packaged gases are seeing some weakness from manufacturing uncertainty, while Latin America volumes continue to grow at a low to mid-single-digit percent.”

Lamba added that Linde expects to stay ahead of inflationary pressures and that Europe, the Middle East and Africa (EMEA) has not seen any meaningful improvement in industrial activity.

”I’m encouraged by the more pragmatic discussions around decarbonization, which could help accelerate potential growth opportunities. Furthermore, we are very well positioned for any economic recovery or increased infrastructure spending,” Lamba said.

The company expects full-year 2025 adjusted earnings in the range of $16.20-$16.50, up 4%-6% year over year and a slight tightening of the range from last quarter’s guidance. It expects second-quarter adjusted earnings per share to be $3.95-$4.05, up 3%-5%. “The rapid changes in global trade policy are having a dampening effect on overall industrial activity. I’d anticipate more volatility in end-market trends until there is greater clarity and stability,” Lamba said.

Full-year capital expenditure is expected to be in the range of $5.0 billion-$5.5 billion, up from last year’s $4.49 billion.

Americas segment operating profit was $1.14 billion in the quarter, up 5% year over year. Sales of $3.7 billion were up roughly 3% versus the prior-year quarter on 3% price gains, 1% higher volumes and 1% higher energy cost pass-through beating out the 3% unfavorable foreign currency impact. Volumes were up in the Americas, driven by electronics and chemicals and energy end markets.

EMEA operating profit was $722 million, up 5%. Sales of $2.03 billion were down 3% year over year on price gains of 2% being offset by 3% weaker volumes and a 3% unfavorable currency impact. Volumes were 3% lower, primarily from the metals and mining, manufacturing and chemicals and energy markets.

Asia-Pacific segment operating profit was $451 million, up 1% year over year. Sales of $1.54 billion were down 3% versus the year-earlier quarter as volumes were down 1% and overall price was flat versus a year ago. Volumes were down 1% due to weaker manufacturing and metals and mining end markets offsetting stronger volumes in electronics.

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Despite weaker energy values, propylene prices remained constant in Asia on Tuesday, as per Polymerupdate.

An industry source in Asia, while requesting to remain unidentified, informed a Polymerupdate team member, "Prices were left unchanged on account of a sluggish purchase pace in the region."

FOB Korea propylene prices on Tuesday were assessed at the USD 775-785/mt levels, stable from Monday's assessed levels.

CFR China propylene prices on Tuesday were assessed at the USD 810-820/mt levels, unchanged from Monday.

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Zeon Corp. revenue for the fiscal year ended March 31 rose 11% year over year to Yen420.6 billion ($2.9 billion). Operating income stood at Yen29.3 billion, up 43% due to improved sales and higher prices, as per Chemweek.

The company’s net profit was lower by 15.8% to Yen26.1 billion due to a large-scale sale of investment securities carried out in the fiscal third quarter.

Zeon’s specialty materials business reported 13.2% higher sales of Yen121.6 billion. Operating profit also grew, by 33.3%, to Yen17.6 billion. The specialty plastics subsegment recorded steady demand for optical applications in both smartphones and lens units. In the specialty binder materials, the company reported market conditions were weak due to stagnating EV sales in Europe. For ESS applications, demand is increasing and adoption is expanding. It said although the synthetic aromatic chemicals market is showing signs of a gradual recovery, the supply-demand imbalance is expected to persist for an extended period.

Zeon’s elastomers business registered growth of 4.4% year over year in sales to Yen58.1 billion in the fiscal fourth quarter. Operating profit rose 65% to Yen10.9 billion. For specialty rubbers, the company said a loose supply-demand balance, particularly overseas, led to flat shipments.

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Linde has announced to increase its supply of ultra-high-purity atmospheric, process and specialty gases to Samsung’s semiconductor manufacturing complex at Pyeongtaek, South Korea, as per Chemweek.

Under a new agreement, Linde will build, own and operate an eighth on-site air separation unit to supply nitrogen, oxygen and argon. Linde will also supply Samsung with hydrogen from its existing on-site hydrogen production facilities. Supply is expected to start up mid-2026.

”Pyeongtaek is Linde’s single largest site for an electronics customer worldwide,” said B.S. Sung, president of Linde Korea.
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