US Olin chlor-alkali Q3 profits plunge on sales

26 October 2009 22:58  [Source: ICIS news]

HOUSTON (ICIS news)--US Olin’s third-quarter chlor-alkali business profits before taxes fell 96% to $3.9m (€2.6m) from $104.3m during the same quarter last year on falling sales, but the company said it had expected the situation to be worse.

The segment’s earnings before taxes for the quarter ended 30 September “exceeded our expectations of a loss in the quarter” due to better-than-expected pricing and volumes, said president and chief executive Joseph Rupp.

Even so, chlor-alkali sales dropped by 37% to $228.8m in the third quarter compared with $362.1m in the same quarter last year, the company said.

Chlorine and caustic soda shipment volumes declined 20% year-over-year.

Olin, which also runs the Winchester ammunition business, reported total net income of $39.4m for the third quarter, compared with $37.7m in the same quarter last year.

Looking forward, the company said it expected fourth-quarter chlor-alkali earnings to be similar to the third quarter.

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By: Brian Ford
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