OLN - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to Olin Corporation's Second Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Following today's brief opening comments, there will give an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Steve Keenan, Olin's Director of Investor Relations. Steve. ahead, go Please

Steve Keenan

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

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

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

and Scott release available to which remarks, with are I'll over Scott after Scott Our and are take your call Releases. me Todd data Sutton. now and will be we CFO. CEO; questions. turn will financial other Slater, this the information With press Olin's begin Sutton, morning happy Press to under brief earnings some Olin's

Scott Sutton

the our reduction and many gutter way grade share the we We investment cash imagine row the of Yeah. Olin what in job million, a do. and history, ran quarter recession. quarterly of the would delivering highest did even conditions in imminent earnings everybody. all and EBITDA morning plus where said accelerated without model a though down fourth EBITDA delivering minus, us Olin was we great We team Still in to or flow the and in good adding Thanks, our The economic declined. Steve, count did sheet. balance our to $XXX global our free debt leadership

event. in and a So I investment any like in on remarks Olin is Olin will what then a recession, why focus my looks on good solely

still our through of performance the here CAPV from call first So revisit line free are or free In quarter chlor cash cash-negative the of the recession The from VCM Starting model some flow. rate, let's of are maintaining other Winchester our to under the structure. slide fixed and shown run needs smaller associated epoxy selling rate as share a be reductions on the focus business the side EBITDA as item XXXX don't though. XX-month more upside interesting more an X. materialized model line tons scenario, All the The gains in demand ECU alliances. XXX,XXX $X epichlorohydrin The not EBITDA of certainly in products operating the value, what billion new updated Starting for repeat $XXX EBITDA recession our business of is lower, three experiencing. of in line and levered reductions the a of longer-term experiences we maintaining EBITDA our this on slide slide, improved percent to of upside flow seems and EBITDA result arrangement million, in a generates our left-hand pricing of recession. new go the $X.X from value of expect core-in back three alkali item, reductions that it impossible followers. drop. could be an pricing, number slide in drop Epoxy business cost earnings items two recession, combination $X result right-hand Olin the like clarification structural per under is side The operating billion most CAPV the part be EDC multiple called well [ph] closure fourth seem that to change to from accepted. items in improved the we Included positioning, low Olin significantly production, that contract cash line a

recession. leader to model and bullish We're welcome run we of the fact, reduce that every position today. count share our X our a looks middle a shows corners of in right through future we In why. further one so on the the for Olin. businesses, we're Obviously, the we opportunity Slide number around can

markets difficult said indicators. participation is future in So temporarily differently, of take to we quality the actions cycle. reduce Part early that positioning poor in with

today. Our our Both at weakness participation to the ECU. of of positioning well This Freeport side a prior ECU. from the EDC and as represent the Freeport and curtailments EDC Epoxy Brazil, and an on fundamental chlorine Epoxy our we associated weak upstreams side in as is periods. the market and Accordingly, to match continue change

Additionally, we in the associated due third Germany the upstreams and expect late to European part in energy again stated quarter, situation. curtail to epoxy

a company up volume equity year value complete XX% from to strategy understated positions Our to buy to with along weak changed cycle. our us economic in currently nimble heavy valuation outstanding shares a the even in of

company our program positioned $X reflects well earnings Olin. in on and solid Olin's invest With opportunity flow execute strong repurchase to and Our flow, attractive new confidence share to cash Board's billion the is sheet cash in our generation. future balance this

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

Operator

from ahead. Ahmed Please We Global. will first the [Operator question-and-answer go Instructions] comes with now begin session. The Hassan question Alembic

Hassan Ahmed

Scott. morning, Good

Scott Sutton

morning. Good

Hassan Ahmed

that the to up QX I the QX, QX, as guidance kind of range of slightly take that's QX guidance to million, guidance slides, that on sort XXXX, QX implied Look, end QX, helpful your of $X.X for seems range recession implied guidance I you of billion an trough at And guys X $X take of EBITDA and particularly annualize things. it I of billion, million for brought to $XXX look which for in of north again side end and a be obviously, your falls if $XXX lower what's on the right? in $X. billion. again, Very lower the range of

the I books question seeing guess, quarter really imply is are that sort year? order that as to or you of my you guys some pertains recession, it are QX? of guys imminent you for to, guidance your So, sort being the conservative seeing is, of I mean what last in

Scott Sutton

QX Yes, is Yes. of some close a a quarters. some Hassan. We weeks for like look, other traditionally I different year. of than down purposeful face do Winchester we the things of couple Thanks then at some really slowdowns the and bit end mean, the

and QX question our of naturally, to that outlook some is our materializing. say taking lower recession chain, to maybe in the approach there. cautionary one get is So, And seeing I of are just essence weaker on say a I'll really sort will I plans just XXXX quarters. there. that demand, we're Epoxy. particularly vinyls a basing that know the continuing our in some we're outlook to and be and the of And And we seems trying

Hassan Ahmed

of Scott. of particular, identified of helpful, domain. us sort could talked on follow-up, just the you considering have earlier. And the things, joint like progress Very out, that venture give update venturing an a vectors sort joint side of In you about companies of potentially guys as sort PVC on PVC growth in come Orbia the

any be So, helpful. that would updates on

Scott Sutton

largest liquidity with sure. the world. of we're is furthest the blue that joint approval the Mitsui, is venture we of where mean into in basically phase one Yes, I the manager our become say regulatory moving along water and I would

operational. So, get we another months six so need or probably that to

a and something making we're we there. of on that, we the progress. of need quarters venture, Hassan, to get can we vinyls work continue couple probably announce terms that We In before to

Hassan Ahmed

much. Very Scott. helpful you so Thank

Scott Sutton

Sure.

Operator

next The Please with go Jeff Zekauskas question comes from JPMorgan. ahead.

Jeff Zekauskas

Epoxy what about your Thanks relative of the volumes Epoxy were market talk very much. first? and state the quarter second the the Can like in you to

Scott Sutton

epoxy, mean from in second I the quarter. Yes, actually quarter Yes. Hey the our Jeff. in volumes first declined

lowest has The a mean driver And flipped XX% of Europe Jeff, its China quarter lot more net that the supply of of is material at in exporter China. world's of And much I consumption epoxy in is become In parts of consequently, has fact, of we is and and already into the of ran essentially, than all and is has China the business. decline. the other into that consumption Asia, there, volume America. epichlorohydrin a effectively declined epoxy, into is big moving material trade Asia. history North produced moving that flows least

incredibly this a business. Now and we is all it effectively, dramatic that running temporary we're is but situation, know

utilization moves This doesn't situation would well. to market think can sort taking we're combine through of it preserve just make making out when expect you of and what get of as XX% this. European you asset those beyond really this of and sure value a worse It difficult You than sort is asset the we choices those recession and time. much

Jeff Zekauskas

Okay. demand, to and you talk be of bit little about Good. And -- seems it whether up. a can holding cost

are prices tightness and tightly Asia? between differences the the of States sort caustic or caustic United in prices in And

Scott Sutton

Yes.

whole I back part to is more happening chain. think discussion the goes the think back PVC in through declining, with What's sort are way all and Jeff. okay, I now very good that in tweaks demand the The perhaps in these interesting the vinyls mean they're I ECU of to producers, caustic demand part actions. pricing world where key PVC values between right PVC of Olin's declining.

and even caustic better And so, into which sort that where vinyl's of get very Pretty production they that's can't expectation. then That the more advantage is than driving soon, take marketplace, will and that to is even our fundamentals vinyls to today, are further flip hold and price. of down long. businesses putting running their reduced supply-demand

Jeff Zekauskas

Okay. Great. Thank you much. so

Operator

from The comes go Markets. with Capital ahead. Yefremov question next Aleksey KeyBanc Please

Aleksey Yefremov

second. can about to volumes business in be versus quarter guess, and How it the everyone. What's the is just going you Scott, good much third the ballpark? morning, chlorovinyls talk I Thanks, for down?

Scott Sutton

Aleksey. Hey Yes.

impact you've course, said, curtail were production, Texas on that upstream And to our and an we that EDC where has so, our well course, of at made, Freeport, facility. announcement ECU seen we of going our as we production the

production be our to reduced. is so, And significantly going

production do out doesn't that's the we marketplace. reduce liquidity our available decline much Our as market access because and in participation necessarily as go

we're lower quarter last So, and still in the value than And it our liquidity reducing doing we're that to two of Two, marketplace, there quarter the is was steps EDC. year. participation order support in at our available accessing that same in we're production. One, our is the time. taking we're fourth of first

to So as as where we're we it's but alkali prices on down declined. some. That's the much item preserve our one working value chlor still can, chain,

Aleksey Yefremov

the from about are thinking $X billion or buyback cash would of is timing that entirely Thanks Okay. XX or And XX lot, of Scott. between flow? hit leverage this a months? to how increasing free you something consider program, number available buyback kind you also, The

Scott Sutton

intention Yes. I our buy look, back And that our mean I'll start to is shares free of with question cash out flow. levered the of first.

of and can So as as that repurchase we we much take shares.

generally So intention. knowing that, is our that

to us first probably of expect year, half that about our of shares, year. back do half X% similar the think to this something XXXX. then you the about you and into on this we'll we If in back bought And outstanding should continue

So the might kind of that's you run see. rate

Aleksey Yefremov

a lot. Great. Thanks

Scott Sutton

Yes.

Operator

Viswanathan next RBC. The ahead. with go Arun Please from question comes

Arun Viswanathan

Great. Thanks.

I you at guess, So a in the mentioned, start you'd release rates also as well. in likely that reduction see

rates that you're the And update you of managing flip mean so thinking at kind some this that how those increase cost Freeport? that back you're and about Could does environment, through trends higher seeing and there? you on of energy demand just

Scott Sutton

up I sites. Yes. this third with our this of take and other period, very, system time mean action the of fourth ramping later are poor quality. in we still, in mean us going reduce But overall that low quarter our pretty into rates mean, Lots here production market very you're we'll Sure. moving I balance as quarter, when that some of third in if participation. quarter, that at areas and to I Epoxy we still still see at our run

Arun Viswanathan

up. follow quick a As And Thanks.

of trade increased does ECU potentially outlook margins, to of caustic rates or what your about or China if if wind expect in you I -- so the are just their products to up on do your on tons You has all with because the side? operating Thanks. or margins, are just at -- chlorine here is flows that the I returns of guess, you or think. as closures. Coast reductions that relates just capacity, because East Does expect or guess, the of that on And would then, you that of concerned chlorine call other to in weakness, mentioned due because XXX,XXX that that all -- great? kind note, more And it to high-cost flipped action unlikely? satisfied, exports curious, And Epoxy, I West you're Coast take caustic take the for more care

Scott Sutton

caustic additional relative there's lot what already China exports I demand been as extra already Sure. described been to Yeah. out the seen well. generally in mean, slowdown look, mean, just happening. you like exports has PVC we've of production, a China, I with of

it included that a is model come already out ECU And that around still, regard some certain XXX,XXX move of ECU shutting adapted with to and in I flows. working remaining and to cases been tons look, of diaphram based we've the different those tons the reminder, is and go So just maybe capacity tons, offset as accomplished And space mean, going on. to in And market we Alabama. out And area. ECU we're purchase and that our already the that XXX,XXX flows a down exposure. in, that. has McIntosh, have XXX,XXX seen we liquidity global

mean, that. is taken in ability in forward, we a McIntosh, diaphragm reasonable But fact, have Alabama. to for drive now. point that's down made for In I difference nimble a the with of see pulled number to it value. us capacity We'll that always be has our to and other There's so satisfied certainly, options. we're all

Arun Viswanathan

Thanks. Okay.

Operator

The with Wells Please next Mike comes from question Fargo. go Sison ahead.

Mike Sison

Hey guys.

So same? that to be terms lower you're the higher about the willing if your you volume the away would or third walk from, EBITDA in got of or quarter,

Scott Sutton

Mike, Hey Scott. is this

understand sure let question. I make your So me

are You're be would away EBITDA get instead walk to we outcome saying, what the relative the proactive forecasted? on to we decisions were if to that volume we what from making

Mike Sison

Yeah.

Scott Sutton

be reason, participating out Well, were we're I it what yeah. Yeah, we we're look, So exactly for go counter trying grab purposely to if that mean volume, not to a could would and have and but the right that the thing to we wouldn't quarter, to higher that in of accomplish XXXX this year. do significantly impossible be not for in half It's EBITDA achieve. back it right? the

Mike Sison

got it. Got it,

guess in the you Okay. of goes And -- do where half year? reverse? to the I it take does your that a go when continues look ECU I up, then at And think second PCI

Scott Sutton

things I'll is minute. to a there There's I let clearly Yeah. comment we on of mean, kind pricing opportunity for look, down. some Todd just in this have, move

that. going or so most fundamentally, chain. Todd, it in I a to of move likely prices from be vinyls me that that predominantly the say would are our saw impacts change However, of our if you that, help on up mix

Todd Slater

No. That's right, Scott.

Mike Sison

Thank Great. you.

Operator

comes Mitsch Research. next question go Please Fermium ahead. The from Frank with

Frank Mitsch

down in you're has its Hey, result. was good and higher to XQ nice due Typically, I to that morning guiding I costs. quarter. curious Winchester. third on Winchester be the quarter saw best

that perspective, basically been running about does out how a second flat can So so that Is that it? it's get a in there's that volume of the higher we you've costs. And here imply really quarter? you not input and function just much from think more the

Todd Slater

that Hi, QX. to Frank, in it's QX be volumes we Yes, similar expect would Todd. will

Winchester how get to it's you you in Winchester environment As that's think in, expect demand that's should we're operate. the I Again, where -- is.

where We we of you have know, confidence, degree a as hedge commodities. our lot high of a

the third commodity degree was the second And costs quarter. in in have quarter our higher than of it high will we confidence, a so be

here we're near very the in headwind So the that term. facing that's

Frank Mitsch

we you. read in I today, assets And coming you fully. EBITDA year, should X, want at back assets make Helpful. sure relative understand how Is The Slide that? entire comment -- billion? we I XX% to thinking that just an were Thank the at about for chemical to $X.X to if your run about XX% be to

Scott Sutton

billion. down I and Yes. mean, level in the turn that that end recession try range. the actions that somewhere occurred, us that could that move billion had impact and billion to push a taking in up so a to the have mean that if to I lot long, that's if I billion we became like we we'd upward $X.X other imminent be to Olin. if $X to of low everything $X.X would say $X in actions dramatic and lasted But -- that the dramatic on rate. we're to would bad

Frank Mitsch

you helpful. much. so Thank Very

Scott Sutton

Sure.

Operator

Please go from Vertical McCarthy Kevin from comes question next Research. The ahead.

Kevin McCarthy

good How extension contingency would markets energy and think went X program. compete, in Yes, to if do Germany Olin? that you impact Scott, demand you by where their supply Phase of morning. the

Scott Sutton

Olin, a be there'd mean, and impact tertiary direct likely. then I be there'd Yes. impacts on and indirect

to direct mean, When there. ability somewhat have those assets be a and secondary those certainly look, of a negative is trade curtail increase increase you I recently, the would Olin. because get the value product likely But we the impact more okay. be Europe, of that for impacts, our to positive of flows trade it's move as and than the we've So into product any just values flows still to in shown hit and

Kevin McCarthy

pricing. you Okay. ask I about soda that. to I secondly, caustic wanted appreciate Then

And in couple week the later a are doubled -- that market think in consultant that? And two increase? that you the why early July seeing today? mid-July. you in you're on be Maybe increase of I do notes you the believed, so, an or some to of can if you a what elaborate or Is proposed then accurate? amount of if did

Scott Sutton

would beside you With you say what's step can supporting Yes. chlorine intermediates again, of today's that's of and vinyl with can more that that that the the other polyurethanes, mean that in Sure. is that it is Yes. value side. weaker PVC, -- that the that think there. environment. and weakness behind of weakness, you did evolving derivatives I has really think generally than the accurate take of essentially think changed ECU can I epoxy, we product and But of that because driving

side many, and derivatives. has relative So, side chlorine been the to caustic many for months, weaker the

weaker derivatives chlorine side of are the ECU. the Now,

that on participation and a derivatives. ECU have we've our side recent first our of the order course just model we over the chlorine flip-flopped on based of market set weaker So, being and history

value so of we concurrently up. side expect So, with the moved our we've caustic in the and basically, an pricing that, increase

Kevin McCarthy

much. Thank Perfect. you so

Scott Sutton

Sure.

Operator

The Byrne next from of America. with question go Please comes Bank Steve ahead.

Steve Byrne

Thank you.

statement quarter? significance a year. is there XX% financial -- is for comment a one-year operating regarding something of third the that rates your Where you're about you the questions on at at unsustainable And couple impacts? would run just in running rates are the you could the that phase? to really in assets beyond Is Just can be running estimate implicit rate your likely the -- you

Scott Sutton

said pretty well I of business business level we're I Sure. provided Epoxy The in on indications the running we're were the rates. business our in say and that what to to we that that one And just that Yes. really its lowest CAPB our year significance above trying mean EBITDA in XX% where that we're is operating there. have running is would we we've only full business. plenty room Olin future. year have only demonstrate is close might the

that because picked we rate be bit is. other by Olin's believe the every kind we EBITDA declined scenario, to our run pretty long scenario. much one We're for year. full So, a to year a In of global value where day we words, here at the must conservative lower recession that economy so it a trying equity be view that where than driven that clearly much under had is

really right create we're that the says compelling case allocation present And trying through of fact we a good capital can good So, recession. are in value a to in recession. middle a that via just we

So, window. idea that's that's that the behind XX-month

Steve Byrne

there Anything whether going on treatment of collective water on price from not unusual? kind the of ask criticisms or that's corn. any just also I wanted municipal authorities And getting you're to you the

Scott Sutton

I say No, there's anything unusual. wouldn't that

the move importance chlorine it And I $X.XX value been directionally issue call to that in market up it toward amount. the only is material and think moved got dollar it we the provides for of in a to that the pound. that real has

we only have So, our is undervalued. it's own that's that criticism the

Steve Byrne

you. Okay. Thank

Operator

with next go UBS. ahead. comes The Josh question from Please Spector

James Cameron

Josh. This is James on for Cameron

Scott Sutton

Hi.

James Cameron

plants So, there you're shut -- a your to capital lower down. release? further significant be and utilization Would working

Scott Sutton

not or not necessarily a are That's mean initial related. the curtailment when occur I slowdown. or the generally see Well, point of a the release shutdown. likely at be It's should a you look it. one Those associated would would face working with capital

James Cameron

Thank Okay. you.

Scott Sutton

Sure.

Operator

go next ahead. comes question Matthew TPH. from Blair The Please with

Matthew Blair

gas caustic morning. good We've to back cost July. seen some European of so global in Scott support factors the or far prices that thinking curve you about the demand do in how chlorine and Hey, outweigh increase ECU in for natural are the you year? half price that? -- a provide for expect Does big these

Scott Sutton

I the of all deliver just I at Thanks mean about for I don't in and question. point be and mean Yes. But generally they that value the what energy to other regions. the and marketplace truth. different think focused the we're it tell that mean world the inflation for may you your on as in world. complex the is in the cost I between the relevant ECUs

can at we you're So, here. right sort Europe of point

certainly a As margin on what value psychological ECUs be. where that might or of a it moves bottom call up, floor helps the put I'll

are it's that trends So the happening generally only favorable are there.

Matthew Blair

we cheaper back guide Makes QX the sense. versus actually prices Winchester circle to And average. lead we're seeing can the that are then guess, for and in copper I QX, July

costs are walk you through exactly what commodity could causing headwinds in QX? the So

Todd Slater

Matthew, this Todd. is

we hedge natural zinc gas, commodity As you for costs, do but Winchester not and brass. for just copper know, our

And so quarter heavily are very out, we a hedged.

a program. have rolling We four-quarter

hedge be and month the P&L. assume value spot our at in market positions, the say, through that of I'll the our because current prices will that of just can't the, the you look runs So

degree than we based our the quarter a – in second. hedges, we costs the on be of high going material and are again, higher have costs commodity other confidence So third our do to

Matthew Blair

Sounds good. Thank you.

Operator

comes question go Morgan Angel ahead. Stanley. next The with Castillo from Please

Unidentified Analyst

in kind is weak Hey, bolt-on guys. for what are wondering mix? if you so, if this opportunities there? are on in And looking M&A valuations just the still And trending at I'm is of macro? Alyssa how This Angel.

Scott Sutton

definitely but capped like I take small of our pay is that's going mean, mean, there's end the $XXX program, of I to at capital Most we think mix. the to the Yeah. amount – limited of very when going to of that in a that it's go that do low we'd this we joint available. of we bolt-on care opportunistic endeavors. are our progress year, is repurchase. of mean, ventures, What likely million. dividend, that very we're which is is by there's bonds about capital that, a Hi. some roughly of I that, half alliances lot to continue There part to allocation of not some doubtful Todd? make chance impossible. is back on M&A XXXX I'm the a high and year. share these would more happen

Todd Slater

And maybe in shares and M&A look as to add back just Scott, with need at investments stock, bolt-ons yield. truly cash a those directionally or activities, we XX% Olin comment, investing free to compete Olin flow a with buying

lens the maybe have price. in M&A that. come to still for bit, the has pretty it's a high a of stock today, with that compete with to So little Olin though compete hurdle And even multiples

Unidentified Analyst

you. Thank Understood.

Operator

from Petrie question comes next Citi. Please ahead. Eric with The go

Eric Petrie

Scott Todd. and Hey, good morning,

Scott Sutton

Good morning.

Todd Slater

Hi.

Eric Petrie

Olin, was the terms flat you capacity comment to as And that an of or ban in bit take little keep a or wondering I you opportunity if best could production. cell-based EPA's expand your would the capacity? thoughts to on proposal reduce

Scott Sutton

I Yes the there's -- Yes. production. has mean diaphragm proposed a rule out chlorine two-year of it's proposed right rule a and proposed now asbestos-based a sure. all phase

chlorine of So roughly is production to country's ECU this asbestos diaphragm. on production based XX% XX% and

while the have and it. So you'd that engaged back current been able be on its pushed was rule not to cripple going probably We've to if to the quite happen. that's a form, EPA in in activity this country, for finalize

come be that as a I choice, like but rule final If that think no to proposed. ECUs immense and likely came goals rule that [ph], if is not of you out shutdown to that, would amounts capacity happens. you're there'd see see turned into out

Eric Petrie

quarter-over-quarter, guiding roughly that between follow-up for down costs? you XX% Helpful. higher price bucket would quarter And you're volume and my then third question, EBITDA how

Scott Sutton

some Todd think the is bit positions of we material where across than the to which of offsetting offset increase steps of is other I see of things that that commented, we curtail and purchase and well our likely that an of is you There's well. as pricing some production. have Well, resell elements some not, by in that all because known to we've hedge of of volume, that announced some a are cost that that more and element like and products

So, it's a of kind balance.

Eric Petrie

Thank Okay. you.

Operator

question Please from next Mike go comes Leithead with ahead. Barclays. The

Mike Leithead

guys. thanks. morning, Hey, Good

your question I costs? comment us Todd in just to just hedging position but locking wanted natural First can just energy up just made, philosophy given volatility electricity you around gas follow the a or or on all remind

Todd Slater

Yes. Mike. consumption. thanks energy -- natural energy as -- our is and of for Epoxy for you very a if We North hedgers American of directionally heavy think are of we power XX% gas gas-based

we quarter that out hedged quarter really already significant it's we our and the heavily So are the with very scale – quarter have sliding has a a fourth remaining third quarters. in hedge for position locked a rolling position

to lock to gas that gives us So as opportunity comes in our gas stays costs. When lower prices. up, you'll see it roll an through P&L as energy higher down

we're our power businesses for in -- higher confident have in that the that's So quarter. will costs chemical we third

Mike Leithead

Jeff's cycles things – do to when you think exporter. a bit chemical time. just other happen, just sense. to to at turning a And China Makes circle you question bit and I then to products that when of or your to maybe I look And it. net a Got want tend back second, Epoxy get about a see sloppy answer for

right So that's not walk just or the and EPI case now for through try your comfort you as can Epoxy you that say?

Scott Sutton

China now to it their used would already into of of is be so I mismatch much China's There is production. material just internal imported consumption and that that versus no takes it because the Epoxy. say that EPI for Well,

that material other And Now America Asian that for and been countries. Asian Most that's going exporting number material Consequently a where to had in that is we're earnings remain the level to. that used value return of participate of countries have that have And to been which months. at but came that the move reverses, came does notched into from those we anymore. it to not will it why that Europe. North China it other And to is. on We've our up that volumes when Epoxy elected not pricing down. our our return reverse, where material left

Mike Leithead

Great. Thank Makes you. sense.

Operator

question Bank The from Credit. comes Please Spitz go America Roger with of ahead. next

Roger Spitz

good desire and IG program you Thank and ratings that. really morning. on an your your have repurchase perhaps Can share to update chasing actually achieve we that suggests you're not announced

Todd Slater

earnings that it's Slide past in laid we scenario an X. can metrics continue And We've a balance with the since given the investment-grade the operating out Roger, credit. metrics with been the sheet we late business. from to year. been and strong during has recession investment-grade on can Frankly you Hi, as recession of Obviously Olin cash last operate flows Todd. see investment-grade

So to to your that I share any and we're investment question credit those evaluate an Olin, investment understand whether grade that the well program. share don't view we sacrificing the about of repurchase given for We continue be our can really as repurchase, without. think the as is operate are objective a metrics our on with grade metrics to going we should question in about recession

Roger Spitz

electrical America? Great. spreads on number a I face spreads wonder a non-Ford high expand your integrated speak of if in And chlor-alkali looked costs. chlor your their could the basis have able secondly how extraordinarily to of have power to North producers been European here in you alkali the

Scott Sutton

we constantly that Yes. ECU been PCI. expanding have I the you appendix the would margin expanding. if they've of And chart a shows contribution the basically refer kind to just in there. say It it's

That's last it's nearly of the slide over variable our couple and expanding ever been X margin, in Roger. deck, is years. that So the

Roger Spitz

you much. Thank it. Got very

Scott Sutton

Sure.

Operator

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

Scott Sutton

joining appreciate a us Yeah. we I lot. Thanks would lot. questions. No. just thank the for a Thanks everyone and today,

Operator

for Thank presentation. today's attending you

now disconnect. may You

Olin (OLN) 29 Jul 222022 Q2 Earnings call transcript