OLN - Earnings call transcript Q3 2024

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Operator

Good morning, and welcome to Olin Corporation's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I'd now like to turn the conference over to Steve Keenan, Olin's Director of Investor Relations. Please go ahead, Steve.

Steve Keenan

operator. you, Thank everyone. Good morning, you quarter joining review appreciate today us third results. Olin's We to

begin, that that Before with remind expectations I'll we you performance. slides statements estimates the of include future the this and question-and-answer will session follows, regarding or associated together discussion,

are and note materially actual differ that results these Please those projected. Olin's could from forward-looking statements

of Form limitations Some our projections from and results to in Risk third press of the differ quarter the recent factors release. that could our Factors yesterday's in section described XX-K actual without most cause earnings are

will A Investors available copy of today's transcript past under our and the slides in be website events. on section

press press are and release data financial available earnings releases. and under information Our other

CEO; prepared Slater, with Ken questions. over With We'll start Lane. then CFO. remarks, I'll and call Todd to are me now President this morning taking our Olin's to look Ken we forward Lane, the your turn and Olin's

Kenneth Lane

impacted Thanks, Steve, disruptions morning, third result everyone. as Olin's and was good Hurricane damage. by a operational of Beryl significantly quarter

team returning Olin thank the expeditiously the which their assets, time for to I their in efforts operations. want normal facing are while site Freeport through challenges safely our communities. at shut plants now July and Multiple hurricane-related the due in restart hurricane. down early team to worked home to The were and to difficult our at

slightly better million in our Hurricane for versus to quarter of the at of X. expected Now quarter results than third estimate $XXX million our unfolded Chemicals Slide initial $XXX turning came the quarter. Businesses, on our which Beryl, impact during excluding The

downtime the fourth less of some quarter completion have residual in critical will hurricane infrastructure due to the additional and We repairs. some impact

hurricanes solid uses. in and Chlor hydrochloric drove Alkali higher, from also acid and aftermath impacts third support recent quarter of Hurricane a treatment cleaning of the Excluding end demand quarter bleach improvement. sequential The for with achieved products Beryl, water

some unplanned during planned by improve, continue markets remain increased, environment. reductions continued delivering quarter, prices supply industry margins epoxy the the well as The third in prices demand very constraints remain and as export outages. improvement cost on challenging slowly volumes focused global a market During We weak. supported caustic to and in to related

Epoxy Our lower Stade, Germany our quarter resin volumes third we started sequentially as were turnaround. planned

significantly in Third quarter volume customers' at Winchester This our offset consumer now our normalize Due year-end. by outlets, partially are commercial to in defense retailers ammunition to demand. of fell softness headwind expectations. short their is continued strength retail purchases inventories by slowing demand

X. Slide to Turning

business. soda with and side value-first Chlor our closer Let's at our a to us, to normal constrained, global With returning on will take supplies industry a and stay is behind operations. focused Alkali Olin our of model the meet look strong Caustic plants Vinyls demand. Hurricane commercial Freeport Beryl are ECU,

soda demand way. to the strong, alumina continues and with leading Caustic be paper and pulp

improvement over American third Index has exports quarter world-scale sequentially, by a robust demand the quarter with for startups. caustic second paper up over pricing XX% and X U.S. finished Coast South been pulp most Gulf the plant $XXX the index. recent

trade steady American chlorine XXXX. into press with remained demand heading vinyls positive North dioxide titanium for merchant and outlooks

treatment during the the pick agricultural-related again [ quarter. up to in ] to We pick seasonally is and fourth the in late seasonally quarter. consumption Chlorine expect slow water first up expected

PVC, keep values to remain EDC are but slightly line our diligent driven. Our up EDC participation with we position value EDC year-over-year in remains disciplined.

at look let's Slide Epoxy business, to a X. our For turn

in Stade, began plan Germany we our the quarter. budget occurs every years planned quarter, the outage, X which once and on and completion is During third proceeding for fourth

in as in both and Stade XXXX. we Olin Despite and expected for the cost margins, producer is that U.S. only and remains an integrated of increase and in largest savings Europe. challenged formulated value asset remain solution the volumes epoxy improving important the to Union, European realize resin As contractual

unabated subsidized even production Trade China's imports, impacted countervailing September, duties only epoxy rising Commission costs of In inflow U.S. with announced The for tightening in local preliminary the epoxy International continues glycerin China. which Asia feedstocks. on

upcoming We subsidized hope and stem expected flow playing epoxy evaluating antidumping duties the duties parallel, and with is also European critical Korea U.S. In in preliminary determinations value materials will mid-XXXX. of imports. ITC's production Taiwan, November of these across field the level appropriately Union domestic the the unfairly antidumping and Asian

turn now to review. X Slide our for I'll Winchester

commercial half heavily Cautious was bought half propellant disappointing. XXXX. quarter demand, the a for demand second our ammunition Third first of during hopeful retailers strong of shortages and

demand to pivoted Now advance remaining in inventory year-end. have with consumer reducing stubbornly of sluggish, retailers

We the fourth through expect continue destocking quarter. to

remained headwind metal recently from a these business. our ranging price ammunition XX% Rising propellant to announced to for Winchester offset costs. X% ammunition commercial costs and rising increases

and White expectations exceed target Our new Flyer been sales. commercial ammunition continues clay has offset to to business welcome weaker a

Winchester's sales Facility. project, continue value Winchester's all chains, revenue City base is project-based, Ammunition grow Lake military our domestic, show This Construction business, and international In the strength. underway now defense fully Lake the participation. funded for by Next-Generation will to contrast Army commercial Weapon Squad across and to while Army's expand global the City U.S.

of in revenue years. Winchester defense-related was to as Our the expected sales grow percentage a coming

I Todd over I'll our up. Now to it financial wrap for before highlights hand

Todd Slater

Thanks, Ken.

commercial generation. a investment-grade Continued our balance repurchases. reinforce value-focused towards cash robust Olin's substantial sheet our share also of continue disciplined, flow to deploying foundation of our flow cash and macro financial strong This model Olin while importance portion running the challenges enables

have shareholders shares. We with $XXX.X Over quarterly operating same cash of Over the liquidity. to time share that quarter frame, cash has outstanding and approximately of cash billion our returned repurchased quarters, of the ended and last Olin repurchases. of we X% X our third dividends and $X available million equivalents, XX% approximately through our flow

Hurricane debt EBITDA the was our has increased million $XX adjusted into approximately of Beryl, X.Xx. third Our end year-end, taking from decreasing impact approximately net the million debt $XXX After ratio while net by during quarter quarter. consideration to

progress to that initiatives our our We in we on quarterly make last call. flow earnings cash continue outlined

Let me give brief update. you a

capital a of approximately working flow our cash of $XXX million portion seasonal During XXXX. be the now $XX source an from to we million third working build. capital in quarter, generated We liquidating expect approximately

We approximately additional XXXX. spending, $XXX million to annual further have taken reduce targeting for our capital steps

As a reminder, our payment have successfully deferred million we international $XX tax XXXX. into approximately of

year-end we will net quarter, year-end expect giving Beryl, is higher While fourth X.Xx. to debt After debt $XXX to debt EBITDA Hurricane net XXXX. million to be our in expected ratio the be believe at reduce further year-end we than adjusted XXXX effect to that approximately

maintaining additional exploring continue savings cost Our and teams cost cash to focus opportunities. generation, discipline on

to credit balance consistently while cash investment-grade strong with committed a returning sheet are We ratings shareholders. to

our Ken I'll back question-and-answer the comments turn to session. call a Ken? before we few begin additional for

Kenneth Lane

Thanks, Todd.

Hurricane during turn Let's fourth the Also operational due the of that to resulting million the will Freeport first Slide extended impact at quarter. of in lingering year we outlook X to estimated a quarter, quarter. half Overall, an our present to of expect in October, $XXX $XX XXXX our fourth weaker EBITDA. full to issues Beryl million additional impact adjusted see into seasonally for a

be $XXX expect Including the in impact, we million million. our Hurricane to range quarter the $XXX to EBITDA fourth of Beryl

value-first Our strategy support investment-grade positions continue this balance our extended leading to through sheet, strong commercial and market trough. industrial liquidity

allocation cash capital Our remains strategy shareholders. focused on to returning

session. the Investor question-and-answer and you'll about on Day a us York X, Slide We participate Thursday, we in just virtually Olin or at Stock an be truly in able to to our live, will hosting on New learn XX join reminder, whether be December Now Exchange. hope person more

goals. Our mark team and Please of entire leadership will your review strategy there calendars. provide to financial an be in-depth our businesses,

now we're take ready Operator, questions. to

Operator

Thank begin is the with from [Operator question-and-answer you. Sachs. Fischer Goldman question We'll session. Instructions] first now Our Duffy

Patrick Fischer

competitor made going the to the back in is that a announcement just First build integrated they're August chlorovinyl Shintech U.S. project your question around large in that

you plant sense think what by also wanted market. the with going to that? to got will them roughly or supply they're us, I today, build? you that And the think your will them this remind scale So scope you And that chlorine get relationship impacted that is be do of just a to what do you've where on

Operator

me, Pardon moment, I please. line. I one accidentally your muted apologize,

open is now. line Your

Kenneth Lane

Thank Okay. you.

we Thanks us, here. had sorry technical So Duffy, being joining about little glitch. a that. We you appreciate for

we've year. going announcement about this a known back So over listen,

chlorine the segment know, vinyls growth you for strongest vinyl. for is or As

a So surprising not it's position for plans. Shintech in to that leading you PVC be that announcing growth already are see companies like

for they're our to Obviously, think what relationship. we're business. going don't negative want terms to that got And stay strategy. their close I to doing. I see Yes, They them grow relationship, part a ultimately, being that's of but their to continue a in of we've

to be it's So expected.

Patrick Fischer

take will Investor it want then you would, away preview is what And kind just Or to that it little that? if strategy-wise the investors? think a enough. that give of you investors Fair us Day, what show from you to is of maybe

Kenneth Lane

not important. it. Well, Yes. these it's had since listen, We've we for a done done years think it's few years, do X I one I think that of

be doing feel of leading very we So businesses a been a that. of like portfolio, in to around positions lot people the to for we that got all about it's how our we've have. going understand thinking we're good And important work we've portfolio

resetting be the some part of we potential where around a of company. to term, important just the longer really That's discussion. targets see So going things the growth financial the our of

team that experienced feature The want I that a you something to a other to has very better. team to pretty side get of got it prominently. know very, is going that's strong we've That's management really all

see to And team. step but an new the forward. business evolution they with how relatively team, from businesses a our have leadership things You're a think leaders that's experienced of one about very again, for their an hear going important going each in I opportunity to

Operator

Global. from with The Hassan Ahmed next question Alembic is

Hassan Ahmed

appreciate around question broke hurricane the A guidance. QX your you out I impact. guys how

$XX $XX EBITDA an in And mean, sort EBITDA the yet hit see QX, I million. way it a hit in the million just was I is worth to QX guiding to of in hurricane of EBITDA you're So $XXX the uptick to from million is $XX lingering million QX impact QX.

on the of EBITDA despite the of I of like. So understand not mean, up EBITDA operations sort just trying the to I'm why going exclusively up seasonality? that coming and ramping Is because of back is it some that more? back

Kenneth Lane

the question. for Thanks

part a is I when yes, that business. of Chemicals the think it, So about think seasonality big you

we're already than weak trough not about relatively a talking but any market demand. where seasonality a So in So okay? more we're in seasonality saying a it's market, in normal is seeing year, normal we're

somewhat we're to Chemicals around anything what So overlooked there's indicating what think -- what for the have probably not Winchester. is for QX people to I we're abnormal business,

of And demand. our that's outlets, this did up going Winchester pretty expecting last even some that retail were the and were that going were to demand ahead QX in to is see we with ahead into the recovery election so not step coming, customers the back cost at increases in in They is in reducing typically saw knowing And year, an their this the carry inventory they QX just year. year. buying quarter seeing into of fourth half of second the what they weakest QX. buying heavily their

That down. seasonality And again, QX. that as not just to hasn't well. And quite pretty but as us hard as there hard us is It's Winchester in coming hit hit in QX, materialized. going it's

been So I much. equation that's not of the picked think the up that's as part probably

Hassan Ahmed

I an you into the down. Historically, was operating 'XX mean, coming in how operating just sure us XXXX, you've talk you are early sort coming rates obviously, about that then. The guys' you could fair, December I just the would just thinking guys rates Very Analyst probably in fact how Day talked about and Ken. XXs. industry preview the But you your of beyond have XXs. you're bit about And were give a qualitatively. I'm and appreciate

gain sounds So position it, would restocking, pole of like. share be guys all, at was obviously and in there the market from the you a a if to

any So guidance weak of seasonally beyond you've XXXX sort beyond? of to, QX guided you about sort qualitative and a could any that us give

Kenneth Lane

this just we're creates to don't think you we've going when of crystal year guidance. we've is as annual said no I we've know, issues I we continue uncertainty reason going lot the XXXX, ball, for that Listen, is uncertainty. of It have. about the to in half of XXXX. And And amount terms the longer which that give of a the in into because back -- of Hassan, seen of theme think Yes,

from a aggressive interest to going uncertainty similar cuts probably listened this better. to the you here is I that expecting think would ago, until standpoint more much next that back really industries, market year, they we with sitting do I of all say see look that a if have, year rates. to the Right year in this now, half year pretty to were pretty look we

recently, probably ticked actually interest noticed here You've back have rates up.

sure end uncertainty that's adding where the the exactly So up. are to just not things I'm in environment. going to

Once back in are start to to come that that don't then housing the we're going those come demand by that see some of driven markets we come see demand would see activity benefit. sort of we see and until other back, and back, housing to the think we spring going be following, to rates going I lower unloading industrial you're see the where and

in change. going marketplace. to awaiting focusing when I And that. benefit from volume happen. firmly the to still like be not anxiously the see and on continue that going that disciplined So we going that's to we're That's we're at believe we will value to to

more now think ever. I important that's than

to how into so we're going it next And year. going play that's

Operator

question Markets. The RBC with next Viswanathan Capital Arun is from

Arun Viswanathan

been demand. I'll you maybe of you're stable of some your Have soda. anything. was and comments could main looks some similarly, as then what far in epoxy maybe like and peer if potential specifically at a disruptions some caustic? there earlier, And seeing markets, for you tightening. some signs opportunities any There in just pricing provide site, guess or maybe EDC was caustic ask on as supply/demand, end some It there's seen on I late

Kenneth Lane

that into outages for third is Thank fourth strength carried going outage quarter quarter. continue It's market. had at not have that really and and the into Arun. firmed that supply see number a been with of there. pricing see terms demand, we Export to globally. end-use during quarter, up to in you, But There Freeport. that obviously impact listen, the third export has fourth that just the Yes, significantly we continued caustic, quarter strong of increased in areas that, we the the the are the in

new Paper be be seen to a capacity There's also in the strong. to there's and America. some been -- on Asia. Southeast is market. continuing We've continues in strength pulp and South paper aluminum strength, coming some in tightness Alumina

So that's adding caustic pricing. support for

the about a steadily we as there. you next been improving -- which And And see we we again, general, in look, feel industrial the is. the it uncertainty activity the back market answer ago where if year, we with So good through improve has gave minute caustic out year. to going all that's

As going to to improve, in that is tighten or industrial give to caustic you demand activity see to continue for pricing strength the market.

still So about going the feel -- and good we caustic market forward.

Arun Viswanathan

I if of then And Okay. on ask just a that. follow-ups couple could

antidumping I you I your are an that in And a you're some So on where it November, the does optimism maybe when that like get guess date think maybe 'XX? for expecting epoxy, sounds for situation, what expectations update I drive that? guess business about about

you add that driver guess see EBITDA? Or that really about 'XX for were would to to uplifts I there only back you million, And some when you is if potential $XXX your back that, other some 'XX? of be the impacts, the think adding

Kenneth Lane

Thanks, I Arun. is are is of a on government, had we that that's here early can uplifts too going chance done expecting obviously, the you -- I week going so we're optimistic planning Beryl, case look to the having We've or Well, announcement that or the U.S. a a a too in all another not hopefully, to thing. to Op-ed It's is ago. to good had unfair an this Yes. don't written ITC the make take at trade the get And pessimistic. make government, that on. to want which certainly we Yes, Hurricane the November. one

all see doing case. we We'll support where ITC But can we're the to up. the ends that

been steadily successful have year throughout We marginally of pricing. the increasing

November, However, face I'll give right in volume to come And -- or a but guess you it's can't early But not. be tell here we're Asia. you strong that's of from to the that outcome a very still continuing very some it's get it's still concerning. whether favorable in now, in to positive that's I going hopefully, going

Operator

with is JPMorgan. The from next Zekauskas Jeff question

Jeffrey Zekauskas

acquisitions come did close In making to size? you XXXX, any of

Kenneth Lane

Jeff, listen, comment not -- have may it's we that may or we're going taken anything on to not -- place.

months, and I've the thinking X company of here been we've about been you going As time about future lot spending of the and forward. know, the a strategy

thinking focus open see we about that our that them. of But We've got we may like for, where I show Flyer, for positioned what but done been has we to been we've say pretty that about see all company the of with bolt-on that trough the now. really out for opportunities opportunities performance can like acquisitions the future getting small highly company that's that, on accretive, take we are had think us the this of the coming White potential we and

Jeffrey Zekauskas

in did Great. and or the did likewise by up the go And Winchester, Chlor in how third overall, down Alkali much quarter, business prices in go sequentially? much? how prices down And sequentially

Kenneth Lane

at PCI if we've of to tell that, slightly. deck, -- you Beryl. down you in that trended the in noise mix -- that look portfolio the that, the Hurricane the so at the around see got was I'll that Jeff, that related appendix really you'll

caustic pricing So pricing. we've continued in see and strength chlorine stability to in

we we say quarter, to stable the going pattern in be quarter. been as caustic the developed line We what is had fourth third the indicated for market pricing a -- fairly is into with that expected chlorine which and outlook and It's to has our going continue I'd think pricing. third in what the firming quarter,

Jeffrey Zekauskas

how fall? things did much at And Winchester,

Kenneth Lane

beginning the related to reflecting that related. We've a continued the metals of not that propellants. and base volume cost increase we're price actually for got there to put higher pricing. It was the out seeing related Winchester we've was year,

out that recover that January put X. for increase with price we're there some So of the we looking to

Operator

The with Aleksey next question from is KeyBanc. Yefremov

Aleksey Yefremov

need come Or to wanted I or customer a this where scenario. replace scenario Shintech it I not? as on low a to Shintech. is builds probability project Is guess. And it back the of a after XXXX, whether outcome depend to new does realistic you this them pretty

Kenneth Lane

may now So got bridge listen, it's We've to under We've from that now, said very got future water -- from strong and X vinyls go then. years of to going position now. look for between a before. the lot Freeport on that's based years it in X what a and we're site, options of We've at continue to very at our the develop.

going But happen I hands our think on just We're to too nothing me sit not now, or that of and would not say in may -- in XXXX. It's through scenarios. terms give what of any early. there's as any that indication you give could

Aleksey Yefremov

then per what Okay. were Can you Understood. us how it QX $XXX expect And do increase. price that far? in QX? and successful ton epoxy, was so And you tell you from in

Kenneth Lane

Yes.

X, October So -- we announced for we optimistic. we are are and that

We on the I minute are that seeing a some mentioned Asia. price ago, in QX. volume we're in it traction coming from increase seeing still

people little success some we some tariffs. may a to have react to starting implementing seen around are But think in bit maybe concerns I what with happen price So increase. that

for in margin to resins a there. up we not reasonable It's think it to close really make going we're to where early price to back epoxy level gains of too in QX, I some see get anywhere quarter, but but to say need do be the to does

Operator

UBS. Josh Spector with The is from question next

Joshua Spector

Alkali quarter quarter the I Chlor fourth in to in delivered to vinyls. on wanted you guide first relative ask what

moving if at you exclude I moved caustic parts, higher. quarter it's think sometimes sometimes are down. But impacts, quarter hurricane and the kind fourth have the up, of first look prices we If similar,

to up, kind there? happened hurricane will there or lower that fourth that why bring context Your frame in considering goal the earnings be we was are be to pieces. rates should other the that of quarter factors other hasn't operating I But maybe out

Kenneth Lane

We've that Again, it's for and accentuated the lower thanks got that's to it's profitability million Beryl really the see go destocking Winchester. We've back had Yes, retailer. the Josh, Hurricane Chemicals. we lingering by I question. at $XX expecting mentioned earlier. and also a what I that from that from we're impact, seasonality, got been

things. two those of combination a it's So

But I out QX QX. better the looking similar XXXX. volume-wise, if is Beryl, in it's pricing than that probably caustic in would pretty general, Hurricane we say had to you take And impact what of of

Joshua Spector

Alkali apologize. I and vinyls Yes. specifically asking Chlor excluding was I guess, I hurricane. the about

Caustic to It extent, higher pricing. expect guess prices answers chlorine volume so something to So my seems offsetting, related are be that, your some I follow-up piece I comment higher. earnings a I'll guess, but to of else we'd like that. there's around ask

in a You talked you it flat but in slide more negative effects, mix sequentially. it show appendix, about the as your and

volumes is really approach Or or and noise? that prices, to just to highlight? strategy So chlorine there change is other related that, and small maybe it's any maybe you'd in that

Kenneth Lane

hurricane just did a just obviously. a impacts. Josh. that. No, related the with our in mix And that No in had We and capacity strategy. That is is really participation unfortunately, mix to lot impact down, the it market, to change of related effect

Operator

with question next is Citi. Patrick from The Cunningham

Patrick Cunningham

was So first capacity But behalf supposed project than the from build to this is Winchester that Winchester core down million is benefit third government. mean more the quarter. of U.S. in $XX about on quarter Winchester Does EBITDA EBITDA million? to versus $XX down the

Kenneth Lane

on the No, seen Next-generation the Squad Thanks, -- say Weapon it's not project up I is that. we're what of ramping would Patrick. we've side mean I Facility.

getting So really in now up ramped that's QX. just

the in some terms you dilution effects EBITDA margin. So do see of

volume But really, said as to more of I would was into related to destocking probably quarter, was it's side going the commercial the first retailers decline related it earlier, the I really as ammunition are -- here the And say. be things.

Patrick Cunningham

be implications seeing then And the thinking should we how Understood. for about Winchester? headwinds XXXX these related, some of in you're somewhat

Kenneth Lane

in let's a need to still in coming to price higher demand half the we for to related a metals and headwind first say, to because costs announced see of see but do for were propellants Well, back Winchester, get we earnings I year. increase it mentioned before, had the have where back we of terms we the

retailers me, the by And time such get saw inventory down them inventory get to levels for down. impact back some see the QX. back you moving take the to of in we That's believe their big year. end will it why But the a

Operator

The next Kevin from with is Vertical question Research. McCarthy

Kevin McCarthy

Ken, Slide for updated and bottom medium at year ECU been XX, of the a the look that's now, of in expected on and it's I'd If about over appreciate to term. quarter. the the right side chlorine maybe your thoughts the I your continue fourth weaker

What demand been you market happen chlorine At has of would been as I out, lot industrial as for high in side nature. in caustic of more we've think stronger industrial argue the been recession. needs to being to the yet think. an And action encouraging I and that a retighten? managers has caustic, caustic level, a And pointed I think overseas, in normally

it the that's chlorine the it's over for seasonality, it to need we vinyls happening, Is that inflection would in to turn spring? we me case quarters? masked potential vibrant you and to next by the How seems characterize be chlorine going need retighten but do next So into few around. being more

Kenneth Lane

chlorine PVC. look to volume recovered to and you to related demand recovering, chlorine to going or at starts going it back not -- I and we the pull housing demand come because has really back improve has come say, let's the of that was, prior was not gotten that's whether market is you're to into has durable see if Once to And a starts to demand market see even Listen, where Kevin. in COVID. it back automotive PVC lot goods appliances. back, chlorine that the housing think as going it's the to not where still pre-COVID, to vinyls,

And and of well, dioxide to as titanium as housing going end see start then uses. those recover markets recovers, some you're like other to

will chlorine becomes vinyls to being where really that uptick of need largest but the in then consumer So all demand, see before switch potentially to trigger. to of get going around particularly chlorine that we to stronger, really we're start that

Kevin McCarthy

few Okay. housekeeping questions. had And a hurricane then I

for comment the between and the of how you $XXX And similarly did $XX hit quarter, million Alkali maybe So segments? Epoxy in your could Chlor the that million anticipated fourth in third quarter. split

Todd Slater

in Kevin, that you Epoxy, Chlor sure, $XX the as Chlor the $XX Alkali. and roughly in remainder for then there. think quarter, third million in the no should roughly think Yes, quarter, about was problem. say In million the you fourth you'd about was And $XX million Alkali

Operator

The next America. Steve from question is with Byrne of Bank

Steve Byrne

you. Thank Yes.

is versus margin have Just drill to EBITDA push Winchester commercial in and a ability best you military spread military? little are the on in wide business? quarter. into that high want the price of Do between you was the XX% level, the this How to bit. The ammunition, owner

Kenneth Lane

Steve, ramp up be to the we work the going City, I business before had that's as or mentioned Lake around military at we overall. project that dilutive have Winchester

In more spot of pricing, flexible pricing a done our is terms That a business. in on terms is of business basis type definitely contract of more military international than a basis.

that that are a more basis that's things For some and aren't. passed got the contract that's through longer-term that we've got City, some on contract for Lake

complicated. So it relatively gets to be

future obviously, to be more that ourselves opportunity defense going continue and business before, got have and the like the to to of business that The it we we've of space the in said terms is growth We we is portfolio. though, in we've position commercial value have But how the around highest there. that.

good with Olin valuable Day. ultimately, is that linkages Investor best is think of to very brand Corporation. that a Olin talk But are and for going there in I more terms industry Winchester. in the Winchester some at We're the about the business

Steve Byrne

low-cost you more capacity Ken. have thought contract and And interest in and a ethylene. you have year some and the when question. to in is Do have given now, right, thoughts one what that Dow, that maybe more that? from with conceptual All And chlorine a on portfolio-related just do with

Kenneth Lane

we're we're company that's longer imagine when that working also is as term. a the Day coming not imagine, just forward. topic will that's our to can talk that, about be up, you Steve, of assets thinking yes, going about the in the but that you can for And portfolio, Investor through going terms we strategy businesses

able more that So in with more with Investor you December. on the share that -- we'll Day to at be

Operator

Barclays. with The next Mike from Leithead question is

Michael Leithead

to relative that's what back I was missed few you to go in the months wanted what actually apologies Hurricane expected driving million incremental, impact, terms if it, a played in exactly out ago I but operations and I your incremental what Beryl of the cost? say, $XX to

Kenneth Lane

Yes.

bit what a impact basically, we is expected. in third we the So had had than happened little more quarter,

fourth that necessarily in can't that then repairs you make. that sometimes to the these had. operational some the what some was you we an the related we fashion, And down When restart, you the related Some is in plant carryover shut and emergency see to issues to plants of assets. had that happened that's in additional of into things when quarter happen

we restarted, as turned everything had repairs. we thought had We we just issues that in over make still we ago. back out, for come week additional some to a and completed had it down we good that When some shape,

or about XX got we So days of so run time.

we're good right where So feeling about now. at we're

will plant infrastructure build some middle you, be fixes. we're this but it we're until that next to there. build which like temporary the get operating I to up don't the still infrastructure probably permanent year, because do back temporary going can particularly tell to later, had until the asked to we And get we of had may we that operating we

of the that we're cost, something to that's But all to us. and costs we've deal meaningful continue we with. terms behind in got think to So impact going operating P&L,

Michael Leithead

that And that operations? how, of there if interest Stade and complex. of [ are I assets initiated Dow if of European yesterday I then And impact that Dow the to Olin? it. would Got That's they second, any one, believe in guess, review a outcome be decide all, Stade the assets, strategic two, another helpful. at does ] there there, your some includes fit

Kenneth Lane

Mike, enough. of in viability like to doesn't really we've with site doing they're able That site you in to any has is Stade been and enough saw know until at that about I for get to agreement don't challenged the did, Olin. really I a don't to least work improve XXXX. that that an announcement been the to our helps just kick through portfolio, for what but really make there. us comment know I that Dow

Dow we'll to I with terms can on. don't interdependency, such about that I what talking discussions doing. you As to continue just them. have a don't got and strong they're of enough because I with we're constantly we've relationship can know anything have them imagine, in comment

Operator

The next with Bhavesh Capital question Markets. BMO from Lodaya is

Bhavesh Lodaya

the demand also weaker side first XX% the right of you mentioned the first the broader on commercial of guess of the Winchester go impact do from to are costs after the to I on margins And the you end question destocking is, XX%, on first quarter, of some you easing now? the given side the to Maybe things, some higher propylene the the quarter? expecting back expect industry

Kenneth Lane

been has in it challenging terms cost. very propellants Listen, Bhavesh. Thanks, the terms of in of

well of buyer an the we're But as into large securing volume. cost. demand a with up we headwind to as production trying that of the propellant to into are, the the terms still But things that of additional again, around standpoint, of capability the seeing job good from do increased catch it's One propellants, in go future. nice and materials a been and availability is, we've able a people

needed time. requirements go going to be immediately, that for at new on are on some to the pressure restock if restocking or coming to things. propellants out going X going going just to peace you propellants to the year that's a in be just until that's you If which quite is is to were continue Even look to keep -- the break on capacity out And future. see online,

Bhavesh Lodaya

we Alkali. Slide on the during Chlor actually And quarter. around quarter, seems been your the to down That XX, index up ECU which Got with highlighted suggest moved Beryl would it. have sequentially back EBITDA then the would the to contrast XX%. during back you circling add that impact maybe If

it maybe stronger current was trending volumes So saw, that exports share quarter? how maybe in and dynamics are the other you you stronger what or those some can that

Kenneth Lane

played mix Yes. Sure, some although in in strengthening again, seen, prices we saw and PCI out not Yes, see what it's is that was in average thought and margins, about caustic primarily QX, portfolio. of enough. we've prices, and chlorine like entire what gradual Bhavesh. stable terms includes the which you What more an related continued we that improvement,

but think when at saw taking were look continued there, we impact and epoxy in out epoxy stable chlorine. if caustic the happening and the In terms of down what's pricing, market we strength Beryl the about volumes and you

out a up, versus you to added improvement net-net expected. we all take Beryl slight that what if had So

Operator

with The Roberts John Mizuho. is from next question

John Ezekiel Roberts

customer Are competitor on any or impact the Vista Outdoor the activities having dynamics at Winchester?

Kenneth Lane

it's impacting you. John, They're know tell they're that's don't I We're if say. the or can seeing not. hard not a competitor I very to any and how behavior it's behaving marketplace, different all normal. than that in

in not. I can that What with participating around or destocking difficult and I that's market retailers, say. process on if based they're what's their all see doing that them know the behavior don't we is changing happening sale is

John Ezekiel Roberts

having in think pricing? Okay. do any you higher on then the impact aren't And costs glycerin China why

Kenneth Lane

I'm can you repeat sorry, John, that?

John Ezekiel Roberts

We for on the be any pricing? Chinese Right? impact doesn't to glycerin seem higher costs It have exporters. having

Kenneth Lane

volume to They exactly I produce Well, then the case -- they to the we're push continue and ITC exactly EU. to producers the resin which is for U.S. the and allowing below epoxy our supporting case into low that continue that's the export think tariffs. that that's cost to making other cost. to And the market,

John Ezekiel Roberts

don't even don't is pricing then matter? the lower think costs glycerin Why if you

Kenneth Lane

they amount brought I supply related on. the think of to that it's

and assets. want want So those a do I they all lot operate they capacity, you. assets, at tell loss. to They've to willing added they're That's their run and to a of can it

Operator

with from Deutsche Bank. next is David Begleiter The question

David Begleiter

do How versus Epoxy. on compare into 'XX the Staying U.S. in imports 'XX?

Kenneth Lane

unabated. higher been significantly import that seeing still and volumes, We're really has

in to not add slow going they're that It's down We're seeing that capacity, stem John, continue not just any all. And market. to that we're they into seeing to the continued grow. volume So push as I at as tide. mentioned to

David Begleiter

number you it. the Got increase do have year-over-year? But a for

Kenneth Lane

I Dave, I don't it increased, know don't, but I percentage. that has but have a

David Begleiter

would Understood. And at to be? you your you and of just where expect the do to where is back on once beginning compare the year? where And Chlor were that they everything running, want how operates Alkali, up

Kenneth Lane

doesn't We're not the that going for run volume value to a QX. We've we're time. the We're harder make our Dave, sense. the in to placing crazy we inventories make strategy. did market pulled lost at assets changing go going not Well, in of like. to That have continue to significantly. lot downtime quite just trying to We the focus up on

stay disciplined creates on We're going a the that be way to highest continue value operating focused and to in for Olin.

Operator

The Wells next question from Mike Fargo. with is Sison

Michael Sison

'XX maybe housing. that mentioned had the decent Sherwin-Williams guess first gauge of second I so half for they Guys, And would the half they of 'XX. mirror felt

ever, not in improvement case the things it how better? that's improve add it can environment you, you think half back if first we what is do 'XX you the the be if EBITDA improves unfortunately So trough but show Obviously, longest Beryl, could of do does to for or sort the sequentially? other much but

Kenneth Lane

Thanks got well. have we've done what to to stay in for focused to Listen, question, can the doing we Mike. cost job help The as teams on that and a environment very we're the adjusting discipline good ourselves.

the take can we quarter. can fourth we've we've costs which spending, another where we taken in So capital out, shown, where there step reduce

That's stay very trough, cash focused with we've equation value with those flow things our and success for disciplined and to strategy staying where pushing on the in the around to volume. the and got to not maximize to -- that's do that combined continue We'll continue that. that's commercial

Michael Sison

follow-up. Got to now. quick quite companies to been time some there of use of their it. pivot strategy, A you've Analyst And their then Days make change lot sort one or some

or hear think to might more Any pivots like are here Are little just we thoughts? have strategy? any there you want a what there Or going you you or or in tweaks highlights bit do? of the to major changes

Kenneth Lane

hope to out, there you you'll see I then I'm Well, Mike, because but. find going

Michael Sison

depends on It the giveaway.

Kenneth Lane

good one. should a one. should be be Well, it a It good

reviewing and the where Now we growth where listen, opportunities. like and at I see said, we're we've spent portfolio a lot of time

that. So But what and get start very of we're hear about going things you I'm want to But about company I tell talk to we're optimistic the I'll qualifying of future there. don't headed. just about and where more that will ahead you the

Operator

Mitsch next The Frank Research. with Fermium question is from

Frank Mitsch

largely the want at add Slide mix and a few I and that to that led know, forth, forth. I specifically to you said What come it. due to so the was back your Ken, to on back decline. we're levels could would decline wondering mix And are details XQ? expectations XX. If for I now PCI on it that be? you was What to if what more is normally XXXX. so

Kenneth Lane

in Beryl. have to expected you -- relatively that. had we customers, do would Frank, But any of all a includes would again, -- out didn't thanks be that's portfolio QX. that for sanitization it the of question. Beryl, split to Listen, impact We flat PCI if I all which I were the where of products.

impact, of downtime So there though, around Hurricane parts. lot The biggest the moving are a Beryl. was

Frank Mitsch

terrific. Okay,

flattish and you it So might where is be? XQ too from that's where have probably off been, would not think far

Kenneth Lane

correct. that's Yes,

Frank Mitsch

is All right, terrific. And how given price just XQ? we to of should pace buybacks where share the as the curious in today, about think

Kenneth Lane

Yes.

Hurricane Beryl, as a to saw level. not but We earnings saw were we the what anticipating midyear Obviously, we is adjusted declining. you're level So a that see as we think Frank, similar lower happening. adjust going outlook we probably to I did

probably QX. But earnings the -- QX where we into would to go going watching we'll continue that to are year, into carefully think and to about be similar next I so QX, it's look would seeing I expect how And QX. but that's as

Operator

Lane over concludes session. Ken question-and-answer This any the to the closing to like for I'd hand remarks. back conference

Kenneth Lane

Thank Galene. you,

So want listen, I thank for to us. you, everybody, say joining

look reminder, weekend Day you and healthy. Just Investor and do great you seeing there in all we a up safe a the person I have and forward December. all stay to in coming wish

Operator

today's Thank attending for you presentation.

now may disconnect. You

Olin (OLN) 25 Oct 242024 Q3 Earnings call transcript