03 August 1998 00:00 [Source: ICB Americas]In an effort to improve its focus and performance, Olin Corporation plans to spin off its specialty chemicals company, comprised of its microelectronic materials, pool chemicals, biocides, sulfuric acid, hydrazine and performance urethanes businesses. Combined, these recorded $950 million in sales last year, nearly 40 percent of OlinÕs total sales.
Formation of the new company, to be named later, is expected to be completed during the first quarter of next year. Olin will retain its chloralkali, brass and Win-chester ammunition businesses. Michael E. Campbell, presently executive vice-president of Olin, will become CEO of the new company, while Donald W. Griffin will remain CEO of Olin.
ÒThis spinoff creates two companies, each with sharper management focus and increased accountability to deliver improved performance, and the financial flexibility to independently pursue their own investment opportunities,Ó Mr. Griffin says.
He adds, ÒBy realigning our businesses into more complementary and more focused structures, we expect to significantly enhance the performance and profitability of each, and by so doing unlock the significant value that resides in each of them.Ó
Olin posted $613 million in sales during the second quarter, down from $632 million the year before. Earnings remained flat at $38.6 million. Mr. Griffin says that unexpectedly good results came from the companyÕs pool chemicals and performance urethanes businesses, but that these benefits were offset by disappointing earnings from the microelectronic materials and chloralkali units.
He adds that the Asian economic troubles are likely to hurt 1998 results for the microelectronic materials, chloralkali, biocides, performance urethanes and brass businesses more severely than previously expected.
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