OLN - Earnings call transcript Q3 2021

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Operator

Good morning, and welcome to Olin Corporation's Third Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions].

Following today’s brief opening comments, there will be an opportunity to ask questions. [Operator Instructions]. is event this note being recorded. Please now Steve Keenan, would like Relations. to to over conference the Olin's turn I Director Investor of Please go ahead, Steve.

Steve Keenan

joining Good thank Tom. everyone, us for you, today. Thank morning, you and

from me remind slides and that statements projected. these Please associated question-and-answer those regarding Before we or the differ actual begin, you this results of with and will discussion, follows, that statements note expectations are that that could session estimates forward-looking the along include materially performance. let future

Some are in actual our on section our our Factors slides of release. and could to results the press copy under in cause Past website of Events. earnings XX-K A the factors and described will that of in be differ from quarter transcript Investors the most section the available projections recent Form limitations third without Risk today's

data CFO. President release Press Pat Scott press Dawson, other Releases. and Vinyls; Products Gumpel, Brett Flaugher, me and earnings Sutton, this With under President, Our Olin's information are Epoxy; and your Chlor will President, happy I'll morning to over financial are take Alkali available CEO; Varilek, COO; the begin Scott remarks, turn Damian Olin's and will which call Todd now Olin's be to some Slater, Sutton. we questions. Jim after with Winchester; brief Scott

Scott Sutton

all in capital once focus our items undervalued with drive have management industry that matrix $XX Steve, are and than to lifting and in me adjusted to of performance the model, the which value ratchet focused to sports sets by Again, our the proved coupling people. enhancing again out activation be continuing share has up I solid deliver the earnings that just balanced grow report accretive to able complete our grow, to contrarian say to on agile This the EBITDA our of is capital team future, future. the a that participation of to per shareholders. knobs, more our in is be Thanks, allocation, Yes. unique and building Olin team on company that shooting Olin products, hello to near pleased clear everybody. the the parlaying growing most and interlink on expectation to turning I'm meeting

So be the a I'll a commentary quickly. make some on shown slides Olin few reasons get brief for for result expected is Slide and the #X. to solid on to XXXX Q&A

to be demand to nodes, of with supply continue exit business settings for resources our here pricing, fundamental that value successful. faster that with are epichlorohydrin accelerating capture activation success get intended was impact a Current to to starting movement. of proving chain in is interlinked purposeful longer-term the start product matrix leading scarce the our is of our our non-negotiated align we in While exposed of than value that Shoot higher our actions the driving grows and based XXXX, participation expansion that on highlights sports be mix of from shooting United

principle supply all really just sequentially exceed reason activities sports, and gets and a energy growth simultaneously be versus is The some better demanding across on # product clean We shooting year of demand growth their mentioned is foundational, took quarter and around XXXX. liquidity in and still are of for all decision that better more More While global holiday stats. in Slide major X. asset are the not thematic better we minor thematic we which seasonality businesses. we driven, results to a to Olin's wind XXXX undervalued October, people is reason XXXX and other result previously are selling The close shown cultural know that home The that some grow who expanding only to thematic In there result, value. Olin's assets reason our value. existing may the expect into end fourth in are. used demand-driven, our enjoying supply in dynamic slowdowns, some our of designed flattish

assets As demand. we of importantly, ability flow our Slide though #X that manage free XX%, getting X we rightsized, consecutive own our grown segment contribution still earnings. quarters uncertainty meaningful to we global continue and and a substantial have an delivered must we But cash businesses, maybe ECU are to our our satisfy approaching is a that higher-value each is to illustration. show are improve. performance for must ECUs a products levered will buyer with Even has to X more volatility. demonstrate earnings Olin

previously we in business Winchester, red that slide, defense consumer on and shown sustainable is the the discussed, growth. reasons For solid offers which and

that we reasons Epoxy, the opportunity. expand moment, growth largest business. and Alkali on are Chlor green in materials in slide, differentiated Essentials Vinyls For is shown will inorganic just in as we a discuss The the our organic Industrial growth and which Products offer margins engineered

globally has I familiar Slide Continuing #X, instead fundamentals on Slide here. jump world perceived brief between not We to across with on differentiated we on all end-use outlook the expect relative by but is a trends, apart wind sure slightly on transitional application be electrical the performance. Epoxy broad world epoxy. segment the in and GDP. a in to energy, to of and Even mobility the have strengths read on expansion company volatility waves they're destiny sales, the category the as a multipliers the leading ripples of our systems non-substitutable won't X epichlorohydrin. other and will outlook for infrastructure megatrend our sets so Consider for control a chemistry hit driver sides value of the offering deep for engineered nearly the when we new And laminates profile every these in shallow #X epoxy of Almost net on turbines replacement epichlorohydrin old and this We Chlor the global sales recognized window we and model from earnings for outlook position materials results future ECU. calls. larger faster and though growing the is and than as really itself good be should more I'm resin consider epoxy you, consider new the of lagoon. on. business for volatile expounding Alkali ocean, think clean We electrification our theme value. value profile trends the shift growth

expect be a company. highly We Olin of materials value business representative before delivers Epoxy billion carries that same today, more than engineered of the all $X our enterprise won't greater and of EBITDA long it carries

close to with EPS talking earnings. will EBITDA going We're Slide I more on #X. segment Finally, about and start in conjunction

share reduction, parlaying doubt majority debt contributors our We are evolution forward advancing EPS. that and be on supply-demand expect big linchpin and discussion of repurchases products, value our leadership, lifted activities to forward M&A Olin and in our people. will our a in value center No and of and refinancing, fundamentals, shows that great

ways shareholder of returns help for to create new and are $XX Olin us evolving However, share. earnings earn per above

that take we're ready to concludes now comments. my So And questions. Tom, opening

Operator

the Hassan first [Operator Ahmed Alembic Global. Instructions]. from question with comes And

Hassan Ahmed

but that to on some gas we've wanted globally U.S. of touch as in escalations the I seen, price well. natural not just Scott, these

and tricky if terms dealt and pretty in continues guys gas the power escalation the natural in a with as natural curtailments tricky price on if of what of in could terms you seen gas also have And the hikes about talk you through prices? quarter it, cost Europe guys side in in you of could what was be to seeing seeing XQ sort we've U.S. you a So of are talk China we're how in curve impact well?

Scott Sutton

Yes. I mean, sure.

is some X have pretty strong that it have we we have covered I helps every of on absolutely those. some out hedging to these strategies we XXX% to us hedged which of of contracts into the couple an as more The keep basis And us, in get local rest we day, the program, in get that pricing. product where a a recover ability instantaneous protect handcuffs. issue. of amount For it manage future, out is, mean, we

actually I movements that get more more fits maybe Olin get more our trade scarce because just of second trade mean that's important into energy one, and global resources. your think plus And Olin costs, right I and the of lifting expensive flows model a the X these volatile. it's is rising for value

Hassan Ahmed

in as by And a the debt net now follow-up, buybacks helpful. Scott, end the you And of $XX-plus share and and on you're it Very and touched Xx year. being EPS, guiding to helpful contributors. meaningful around as about M&A like obviously, EBITDA talking the being was very sort of to

a meaningful be allocation, bit is, thinking with as the balance sheet now particularly as regards share at you clean into could well if sort dig look should of with thought we how the as buybacks capital to about we process As XXXX, deeper it M&A? as

Scott Sutton

the cover Todd call, going to go go it other we're there'll X of Yes. grow that and of through be company. good most toward I is mean, out element sure, look, and growth suspect then of some maybe will we our but And talk to and it, bit a I programs. questions cover the I'll about happy how

Hassan. certainly of to I rest? do cover that's you the part it, mean a So Todd, want

Todd Slater

Scott that right of about, and provide balance we've that just the financial side parlaying lot delevered the does the to in talking accomplish You're a referenced. flexibility as as we've sheet structuring been

that XX% shareholder our go Going opportunistic range buyback we as expect flow we that as forward, in levered share of the rewards, to target cash includes dividends and would free forward.

Operator

question comes The from Fargo. with Wells Mike Sison next

Michael Sison

to given sort you feels the this I'm your a you're of sort but coming and of Scott, it like, ninth continue just that in well results curious, things transformation of talked about can lot your of inning how -- of year, sort are improve. in

So been year. year, you here curious a a you've and been where just you only it's good are think

to Just be do company? what improve could think to the continue else done you

Scott Sutton

supply an liquidity are that we to available of more that. here Yes. and little actually sport the are there. we're we're Mike, started starting importantly, And long complement the set come that say bit a business, some and And to future that would would Hi, business the we've grows hopefully at faster I you and than with get about a place, systems foreseeable it. ourselves the about Brett call. mean, the done embark high-growth complementary is of that so program ECUs put some of Olin Yes. has think the accessing by immensely, runway more in to out look, go talk fact and Shoot we mobility product then, here that model just where of we've about areas asset There's in and in a Epoxy, front has go of growth. a mean, our Maybe team bit, doing getting provide shooting disruptive off. to In the like of and number which to a of out far say, to acquisitions. beyond the to will program people I take in all opportunity highly Winchester on course, demand for point to thanks. lot I business. buyer United of growth and if is that inorganic we'll there our global on out that grow later a I

So sort shakes runway the how out. that's of

Michael Sison

to between sort of better? a that bit you’re And the Got keep the delta million for you million range EBITDA within? of maybe When think quarters, the a volatility in next you're or in about just half that your sort second range. it. doing then potential kind about follow-up, $XXX as million $XXX the above is million year half, the we the as And can that $XXX of is think the first you $XXX EBITDA, a -- little

Scott Sutton

tied that reference under reason, remarks to trade materials opposed open is some continue control, Well, and made day, I at our practicing to make of get every some our we indices. think our those are just to knobs the freely see being Mike, model. more -- getting about of as more you getting because we're you And that good the differences we negotiated

there, been getting better we're a has volatility volatility just kind because one-way early model. of been that expanding is there, our that, it's reason the and So up

than think the side in periods because out sets I is may costing. the better be to some we're of and participation time saying today shift XXXX, be when side we there look have of still future, where course, ECU our weak that you which market the will XXXX

Operator

KeyBanc. question comes Yefremov next The from with Alex

Aleksey Yefremov

capacity? of renegotiations of of epi merchant any you size revenue mentioned you your percent percent provide Scott, renegotiations percent your or but slides. business business Can in what merchant out is epi also a the for up details as maybe the

Scott Sutton

Yes.

I discussions getting think quarter we your have that XXXX, up. opened question. up. side, us. on by I we at how essentially expect the see that's I opened over heard to that go least progress the So least And chlorine continue we'll mean, make to for But next at

We linchpin chain. day that lifting And important, big business epi value haven't epi how shared whole relation the about is every the you not on epoxy of the sets because just that to epichlorohydrin? is is resource. across it's focused is the scarce of rest our business. to that What of important value our have anything is else add the really that in it it Pat, would size Olin

Pat Dawson

Yes.

the is, market a mind to and in I think merchant of production. we thing about the epi captive other flexibility keep our have between lot

value activate more chain. epoxy can to knobs to have whole We we that multiple that bring value on epi

Aleksey Yefremov

is activity Could parlaying here? you would how opportunity? describe involved What discuss And well? you this as EDC for

Scott Sutton

will I Damian EDC. parlaying on Yes. make some of comments Yes. mean

would Just EDC, we broader had think if on to topic, and that do successful third at you want epichlorohydrin, all to you And epoxy the chlorine, EDC? we're just of activities those. talk I success Damian, in products, program. the be developing about caustic, parlaying our bleach, around about quarter, continuing say many

Damian Gumpel

thing, at Sure Scott. in merchant presence Olin, an have we large From EDC EDC. standpoint, a

their Asia, now obviously, Asia, closer supply with them customers customer can own get expanded help world to some over Africa, and there all -- Latin well course, Southeast that Northeast reach parlaying that in the to times our happens available to India, serving markets. And certain growing Europe, from the positions realize And have to to opportunistic supply other that’s America. Of U.S. we with our we be products touch ability network product customer allows Gulf. our into we end-use as ability turn in there our have value just demand complement bring world, because at us in material the that -- the PVC the the

So our value that translates going parlaying with is our realized for ability we've customers -- to get that to closer that network, Olin here forward. into

Operator

comes Vertical Partners. question from Research with McCarthy Kevin next The

Kevin McCarthy

in recognizing segment this What margin in out that in as to of here? Epoxy? improvement, Scott, billion business sources additional has the from What morning, What X a past and threw do to see XX% goal do the long I or for business the come and you've get there in talked do segment. $X about X an goal you runway way? Epoxy need incremental for are already of beyond that the you 'XX EBITDA think in you upside

Scott Sutton

Yes. keep bit. started. I a already Pat that can those need on to the mean little we've going we expand activities just But

Pat Dawson

right right Epoxy I different right? look place. at time, at and at -- Yes. that. mean would for megatrends look composites I right and really Kevin, right these the Epoxy Epoxy enables at you you is place, Epoxy, you the time, is in look at by it's say, what And light-weighting. segments, if demand that the is the So

blend, right electrical decarbonization adhesives right that in You e-mobility, place, time, systems, look place, Epoxy, wind right e-batteries, right used laminates, are time. at

great value market. doing what to that to lot Epoxy value is you're and Kevin, the where position value what how right think a complement in in We've in can be I a applications, really, megatrends we're infrastructure globe building these I can But go commercial have of got of place. across And seeing in got around already to see value we the these extracted. wheelhouse been extracting the organization around best think whole So the the be keep brings we we play place. able we've to

Kevin McCarthy

Okay.

and strategic outlined, improvement riding you So it like Pat. demand just more of that sources the less sounds it's

Pat Dawson

epichlorohydrin strategically, phenol aromatics have cumene than we in been that the we we say to this model say and forward I no much and there I'd And multiple mistake acetone more what is scarcity Well, epichlorohydrin bring make in of in opportunities the it have going the past. that contrarian in do and knobs play. would even and into has strategic

that to strategic future could our So be well. as very

Kevin McCarthy

wanted Scott, in cycle ask just breaking may, secondly, about something talked past, X. to Slide This pattern. then the I is about And the if you've Understood. I

I wondering chemical ripples if waves analogy even it. year. forth. on point finer was on an so Just you companies a on sometimes you specialty appreciate the ocean and put logo could But used suffer down a the

If you Olin? a a for in for your were term, medium it an else years, to cause down precipitate weaker cyclical side company? a it take Is the what economic that ECU from shift look the of to out recession to would year over X the stronger or X or side mind change something to would

Scott Sutton

even kind about the volume. you there's just heavily to wave is your it. first of back I no mean, make focused I mistake I riding said any wave. on mean had going Olin Yes. you would just creating. question over if mean it's we're wave, that where I are a value And

no you're We're changed So represent business, changed we've Slide And structural out on. trying is years, growth that X to reasonable cyclic business. there completely a this structural cyclic that that growth. the have business This on in work longer it exceeds have supply is cyclic look, demand only a not made #X every Olin but there. is right? now. because was and we're It marketplace, place how business are single view going And we a a that, right doing exactly dynamics we

or little So have which side reiterate sure go and that's very that not but to sure make That to not shift. may ECU down we the from what I relatively market from that slower bit setting need business significant resources. nimble taken we not our a out do to we type shift is quarters. the may value that items could get is participation, make a of Olin's We've impossible, want that be do being is to to a scarce of we there That you short-term see. being if year-long do to

Operator

Mitsch The comes next from question Research. with Fermium Frank

Frank Mitsch

about just yesterday the supply and alkali the severing capacity and an demand leaves You Alabama. you that? where some talk the made chlor And Could market balance? about this think announcement behind in you decisions

Scott Sutton

into and mean driven that Thank And not balance. go to supply-demand buy that right participant comment ECUs derivatives the of be the won't compelled to Yes. it low-value still a that you we're strictly trade to going on going downstream places Olin's decision next in markets. through where in forward, support undervalued where positioned indices value we're on to we're at we I is growth time was you, continue And smaller our we're market product. will the in the likely don't merchant And those just there. The be to particularly in year tell market. and actually by supply the sell to the fact market where leaves Frank. I place can going out a reflect

Frank Mitsch

you. Got an just dream. and as investment that that at And I I ECU XX, hockey mean, contribution Slide banker's Got absolute look in Okay. you XQ going see profitability the in index, an is Where XXXX? you. do stick.

Scott Sutton

and ties the day, together. Well, that we're the everybody focused company X measurement on every in that value, is

it continue positioned think continue move Olin's to in I move Damian, Again, quarter or I make you in to value. spot a fourth we're what So yes, here? it flat continuing up. do X be we where we're draw focused mean, is, it to about have to quarter reiterate we'll want right sure to on But your business there that may up. a to lift to

Damian Gumpel

there that can that really mentioned the our of negotiated. continuation slide away We we trend And contracts contracts is index shifted a relatively where course, step-up Scott in first away. mean, we're remains see the achieving chlorine converted side more I highlighted we is as value a Sure. in certainly as well. There from of stronger. to that

The play complement Pat’s to and of the chlorine to we the chlorine Epoxy through rest remains as strong. see -- momentum side, my point portfolio So to in continue that increasing on division course, spoke the that flows. yes, to achieve about improved. areas And the has are value. of disrupting side we of There's continue and certainly caustic tightness, trade issues energy those continues some we

that ECU move continues the But we're so caustic model. as up side to and well. chlorine the seeing to certainly stronger growth of to the as PCI, expect we net-net, continues reflected continue. drive in And But the

Operator

Zekauskas next Jeff with comes question from JPMorgan. The

Jeff Zekauskas

why that? cost raw at can it have volume? think did $X.XX you down goods I effect? goods of you have simply looking your would Did Is go explain sequentially? I thought was was materials was quarter, been higher. I your in billion. which billion, lower second would of ship the And Or sold, the sold cost that $X.XX

Scott Sutton

lower least I Jeff, I amount look, sure. Yes, businesses, of mean, had mean at volumes. yes, we in our X of some

the remember -- logistics at other so forth, end you a down there. If in issues volumes slowed bit quarter, and the third pertains, of

driver. is So about that's right? Todd, that probably main the

Todd Slater

big absolutely was That's Chlor-Alkali -- Yes. the Really, volume we the a of [volume]. Vinyls commented in the case. Products, was the I see can was you that down deck, result result mean sequentially.

So that's you sold. of lower cost goods saw why

Jeff Zekauskas

And I to slide, then negotiated. -- under shifted you And remains merchant in than freely now chlorine of indexed. third your another volume your X/X less in said guess, of XX% Great.

some annual that economic of effect now was of all remaining the under market at if index is What's the contract. So volume that?

Scott Sutton

portfolio trying of chlorine that more important. Jeff, more derivatives. our of index the of just The product merchant from without product is to lifts itemize I would that our out impact by whole part getting chlorine is say, important

isn't going market. don't we of Now economic remaining fair say to we value some have to X/X having year Olin. receiving impact stuck that more for X of from on aren't because indexed under supply of customer under to complete X/X if index, hold be it to the to representative I'll the some to expect with would But remains Olin those that were get from volume we're out that because a chlorine segments just at

So that some we'll of lose volume.

Operator

Search. comes The Josh from Silverstein next with Wolfe question

Josh Silverstein

from before. a buybacks Can was Obviously, amount versus capital minimum for reduction. maybe to talk just the for year discussion be left on capacity allocation for you're versus wanted a big this next And to go hand debt What could Just reduction? about you cash about buybacks? what M&A thinking then year? potential back over debt for year the of

Scott Sutton

Todd stage explanation to XX%. a set little Yes. expand is his back the return right what I an will for mean, of that now, bit. say I this on would mean stock represents immediate about I buying

So you significant be to can forward expect a Todd? our of part program.

Todd Slater

That's about really our right. think Really, if pay debt first priority of has to billion debt, down XXXX, been reduction you and we're $X.X targeting year. this

about quarter. So our first reduce X here through of quarters. the million that of and high-cost the We've out plan we lot debt now, taken in far, it's $XXX fourth debt a further will system to

So as as us $X.X do the financial To answer free we're debt the to our And enable to question, and and billion shareholder which Josh, buybacks. we about where range. would XX% M& towards XX%, in levered in we're that well structuring probably right gross that to cash billion flow will us on targeting of range that earlier, part range. we're dividend of our Xx range. A activities, focus to as parlaying, include gross flexibility get really targeting Ultimately, said going rewards, including we're down in debt your is $X.X targeting

Josh Silverstein

now, floor this base portfolio be EBITDA think to could few asset do I a now. was the the That's think, $X.X And helpful. level. mean previously given right in and be the what where upside? Is could And of? just done it on new the years to you that that number new suggested billion then from

Scott Sutton

mean, pretty mean, keep we'll Well, to we'll pretty move EBITDA up. obvious. this year, I to get I that, working close

setting absolutely year. year, we’ll I around next over evolving based lift this to We're also EBITDA we've EPS. that think said targets

we at a goal fairly and have from so short-term we'll look $XX share, a we And go of where there.

Operator

comes with question UBS. from Roberts John next The

John Roberts

could It how seems going the open it's if of in of that once? Or And at about contract forward. is contract time? phases talk that it latter, does far contract all still largest part out X the goes? up the Does open up The Dow over you like longest opportunities

Scott Sutton

public on cost is give in it's particular supplier it the customer. XXXX. will Well, in I our and won't a supply specifics item ends a many we're I doing too material what with But or say, major that already, ECU at because arrangements is that domain

And so will be and to accretive options there'll be and cash Olin. each option every

John Roberts

Okay. caustic, Difficulty]. And And production. lot again, the a [Technical then Hassan earlier of [Technical Difficulty] Chinese

Scott Sutton

sorry, I quiet. end our end. the missed Hey, anybody hear if don't It you still I on know I'm Tom, or it's question. us? went just If can Yes. is our there?

Operator

the can you. hear I Yes, question? to like Would go you to next

Scott Sutton

Yes.

some it. lost we For reason, just

Operator

it Viswanathan RBC. phone comes question The next sounds his right. line disconnected. All Yes, like Arun with from

Arun Viswanathan

So I just wanted on to that 'XX. ask be better your than comments 'XX will

your XX price has positive much. in of momentum -- Slide Your across pretty all businesses

think about show context comment that value, that Or should your higher comments how that you assuming focus to So continue expect segments? the in just we continues, to given segments on of do you each the EBITDA? the of

Scott Sutton

fair. segment relative think results every to Yes. XXXX. that's better should No, and XXXX show I Each in

Arun Viswanathan

just then curve. another And on cost question the

capacity is you know to that for have here value? how that? ECU. the And is standards be on is up $XXX again, changing the there in you that How moved to say that your you'd I values anything debottlenecking? still obviously not million on would you to your anything could And change mean, focus any do much shutdown? could situation? still of productivity there maybe think capacity but of kind would You on the about ready you of your say up is I much

Scott Sutton

capacity you -- start about return of you when standpoint, Yes. just I think XX% would Clearly, zero capacity today. gets a from I out think it about mean right? if our in XXXX,

So chunk. a that's certainly big

caustic not our in a It's a have just market work get to great manufacturing that still there merchant do. to a If those you some if we I supply while look productivity lift I though. some you so of market, issue. done reinvestment It's think to assets. issue, take ECU of at get job value the are do our to to there's market, more sell into go we And chlorine close merchant somewhere take up to what work still starting the the that economics. have teams a flexibility out, and point point chain to still and a necessarily reinvestment driving to cost the economics, and derivatives elemental mean into lot we our

Operator

The Petrie with next Eric comes from Citi. question

Eric Petrie

XXX,XXX capacity of roughly year. tons closed You this ECU

Just Or you do that going Do the a close expect amount? strategy. parlaying to forward? on see X you question how

Scott Sutton

Yes.

let question. answer maybe I’ll think I Damian this

Damian Gumpel

in believe that market. We that's standpoint, mean, leverage. from I about available there's that can out still see volume we it's that a Sure. pulling of parlaying there the pools that's still that liquidity out we globally and

into elemental going and like play chlorine. our our across and be across how across cost epoxy, these our course, we on ECUs with at as back growing the see bring even system, allow chlorine capitalize our role position. these demand as we're is our in clearly intermediate, our derivatize fully capital bigger a But flows that look bigger we areas also to flexible organics going to vinyl that parlaying ECUs as to areas, that across -- do ECUs Of ability our megatrends impact with other space those to and we are to us meets more become trade and disruptive, derivatives, the

pull value the we we that opportunities well, of and all other own the merchant of and purpose flex that and serve. derivatize to So the listing into into as ECUs enhancing here the have chorine ECUs our customers for the system

Eric Petrie

much that the to under that related on that of And market? end on next then remains TiOX in And of of step is X/X the does volume how indexed, chlorine the year? at change how Helpful.

Scott Sutton

to not -- say that's of out market. just be into I XXXX. the going serving is And Well, We're would in part mean, it TiOX. I goes part of

And just announced down related this to shutdown volumes so McIntosh, are we the of that that part go in Alabama.

Operator

The with of Steve question comes America next from Byrne Bank Merrill Lynch.

Steve Byrne

Yes.

You you the is end but is relative say data this you? chlorine. have in a getting the that, among clear it is perhaps customers’ that value where is reason highest year your appreciate Epi, here, that range. a point for caustic. there illustrates to slide epi competitors’ I a end between example, for that concept chlorine markets still wide for been The value It's ask chlorine to point bottom might fair likely I And complex. the market, have Is you of the not value of the or backed at and that ago capacity and very business of entity? it that it is range of risk either now is, chlorine value think the expansions to on

Scott Sutton

in likely are the expect the future, expect high mean, ECU thanks. even way point end out of because would still a have the because have that not we Yes, or announced, a I side have of to those certainly products. to say things expansions see than to mind derivatives whether to demand supply. going up Do not expansions I epi there's on keep economics? chlorine it's at Once of a enough range some business? world grow I'd moved those faster in Could continues is we gap move move Yes, epi where up. to certainly announced impossible. It's it's X-year to we look, that get a it the otherwise, chlorine where supports not and in today. see reinvestment scarce lot long it the of

only that the of XX expansions if the just is that So continue are multiple way announcements there multiple next over changes years.

Steve Byrne

pricing Or of PVC you to $X.XX difference compelling want versus fair got PVC like on between you direction. these when garners move in some have that EDC? them both that look chlorine at we derivatives to versus a EDC, about maybe of is much to And pound that them. you to downstream that of but at a ripped that then margin Is

Scott Sutton

And we've course, EDC. value. up in we're, a material moved of merchant largest mean, I that's that supplier of the Well,

that movements at I like -- have around a move EDC to term. maybe of over not positioned for some would that did up. think that there's go advantage I margin down. PVC we lift think of I Then the we're I fundamentals look Clearly, you think sure where back recent it Olin's it of least X-month window, to to the had room just that. PVC activations Looked a risk so going PVC good by number take portfolio EDC. the up. coming And there. PVC a And way, saw down, was back I'm say gets X- some there went to across make we of longer

Operator

with from Tudor comes The Matthew next Pickering Holt. Blair question

Matthew Blair

to allocation. I to wanted capital circle back

powder So or you guidance, significant generate it $X.X as seems M&A at like million. billion, least shareholders. to to dry year. next should remaining billion like seems your based it because That transformational able on XXXX of $X M&A $XXX EBITDA be M&A, like mentioned amount. should either flow for bolt-on we free a pretty cash of And would about you That be that think XX%

Scott Sutton

off. mean, I look, So, certainly that aren't numbers far your

So we I also our and is as It's terms I where support and for will I asset capabilities have to of do Part low of mean, touch options just that. have complete capital, wanted capital. light it activities logistics you're we'll we in liquidity because in global use for Part really various is to out exactly some go parlaying picture. it needs acquisitions. but right. That's very mean we the product that. of

Matthew Blair

Sounds good. or ESG it or I spin hard sell In picture. or seems previously, a environment, taxes the mix just to was of just it both? maybe And either today's of bigger like due a either to think like is valuation part Winchester then

anything in just term? changed? of you over long could portfolio And you has the fitting how So guess provide an update see Winchester I the

Scott Sutton

million here going speak us. business great lot Well, ways. in sport a just movement. XX a now, a little XX the youth fastest-growing a Brett to of to United It is to has But I I'm doing in just million mean, the for now. got about And this moment and really country our still break ask sports bit, down Yes. a if Shoot were you've shooting to it's people business you

So Shoot program to the and talk that do to -- go roll pie. out, want and got now out about Brett, United? we've about to you increase this we're

Brett Flaugher

fun The to participate million really participate and bit said. that all sophisticated to those those now XXX-plus And shooting strategy what over million friends. family with is to market addressable demographic facts a The to people. and the is people XXX introduce to things a be add sports XX Scott little million about Yes. ages. just for the great reasons of and Shoot main all is, What recreational United communication people

Operator

Spitz with from Bank of America. The comes next question Roger

Roger Spitz

Following yesterday's you left how have much do announcement, capacity in diaphragm shutdown ECUs?

Scott Sutton

Yes. that half to out XXX,XXX, we've Yes. I based. mean tons. almost something about And say an totally we capacity I will with number, of taken announcement, what quote our be diaphragm probably ECU but like exact won't that is used

So lot. of we a good out it, a we took but chunk still had

Roger Spitz

the move Okay. services bleach? to chlorine it And can value other all reaching derivatives of Is as you touch? we on comment starting people pandemic? into they and Or is, can out still volumes fall versus

Damian Gumpel

This is Damian.

and a thanks Clearly, the that and move also bleach we the Let seen take values me broader across movement have it. Bleach ECUs. question, with product. up in for scarce is concert

to disinfectant As the value bleach. largest producer, bleach moved up than seen treatment we as grow be more areas. much and play room the But wastewater Continues bleach dynamics ECU and Chlorine needed. used clearly, clearly merchant into have out. have more values in is and

its value great to product to -- And us this capture specialty properties runway long with so a we're in into beyond still front for markets. poised of

Operator

Mike The next Instructions]. Leithead from question with Barclays. [Operator comes

Mike Leithead

the looking you're Can with first there? of maybe you going of new just for Just -- for just out what us either looking on of what you're size? in terms sense kind product flesh on Are give Just touched expansion? or opportunities. you after there? guess you a I acquisition or us geographic inorganic help

Scott Sutton

complement I had for sure. mean sum we're model. if it to say looking Yes, up, would I assets that really our I

lot that opens a mean of I So possibilities. up

is opportunity lot necessarily You be to that into capability, of North other imagine to not we're that expand for us ECU able could may geographies. There acquire although a American focus.

our X would did we across and model, a lot just feed elemental we get those like organics vinyls. model certainly we have would chlorine derivatives, knobs down be Another we more other and of ton epoxy an There’s a today. go derivative complements to our that be back off and matrix great turn our chlorinated that to have part chain to to value and have chain we way complement the chains whereby

of would The other complement I other we direct those things not say, acquire. have as actually well also impossible that thing that a that attitude our commercial discovered it's businesses our might apply might model that that to we to some

we're about all So of thinking those possibilities.

Mike Leithead

kind and engineered Slide follow-up, a or just to around a trying then lot volume], things If just strategy That's there's hardeners, the dispersions, a try into to less great? If that'd epoxies sell more fair of kind solutions. of it of with great. could at maybe And digging more flesh of look of it that you downstream be bit. Is for that? ultimately liquid X, say just for Epoxy I kind to commodities, Epoxy, epoxy push where the discussion [the out the strategy you're talk like

Pat Dawson

there. at Yes, our it's across whole very interlinked make is how chain, chain we value Epoxy to when And we money the Mike, that money this make as look and you Pat.

So or epi, we back resin or things monetize and epi selling systems we resins the it that take and our we we and or of it it get If monetize how market. multiple take convert to value it wind whether we further resin can with merchant market that products like on to solid resin formulated the like or epoxy epichlorohydrin, I out more convert and it's say, we that a take there into to into epoxy converted blends. or we epoxy have knobs liquid liquid that epoxy systematize liquid or it can other resin merchant

doing, whole choices. over what do we that the need be value able That's chain we'll and strategically, really to to the we've future. need volume Mike, been have to in we continue that So maximum

Operator

turn remarks. are closing there no concludes this over like to for now session. Sutton any back conference further As question-and-answer questions, Scott the would I our to

Scott Sutton

thanks I it. say just No, today. Appreciate to a everybody lot would for joining

Operator

you has attending for The presentation. Thank concluded. now today’s conference

may now disconnect. You

Olin (OLN) 22 Oct 212021 Q3 Earnings call transcript