US Olin Q1 net income falls to $38.7m; sales up by 16.3%

27 April 2012 05:02  [Source: ICIS news]

SINGAPORE (ICIS)--US-based chlor-alkali producer Olin reported late on Thursday a fall in its first-quarter net income to $38.7m (€29.4m) from $133.7m year on year, while first-quarter sales increased by 16.3% year on year to $507.2m.

First quarter net income in 2011 included a one-time, pre-tax gain of $181.4m as a result of a re-measurement of the company’s previously held 50% equity interest in Sunbelt, the company said in a statement.

The company’s chlor-alkali sales were $359.7m, compared to $299.4m in the same period in the previous year, a 20.1% increase, it said.

Olin’s chlor-alkali segment earnings for the first quarter of 2012 grew by 64.6% year on year to $74.4m on higher volumes and higher prices, it added.

The company’s Winchester ammunition segment earnings fell by 13.7% year on year to $10.8m because of higher commodity metal costs and transition costs associated with its ongoing relocation of the centreline operations to Mississippi, Olin said.

Sales for the Winchester ammunition segment increased by 8.1% to $147.5m, compared to the first quarter of 2011, it added.

“In the first quarter of 2012, Olin generated adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $94.9m, which represents the highest level of first quarter adjusted EBITDA ever,” said Joseph D Rupp, the CEO of Olin.

The company’s first quarter 2012 adjusted EBITDA represented a 38% increase compared to the same period in 2011, he added.

Into the second quarter of 2012, the company expects its chlor-alkali segment earnings to improve from the first quarter, reflecting seasonally stronger chlorine and bleach demand, it said.

In addition, Olin’s Winchester ammunition segment earnings in the second quarter is expected to improve, it added.

“Second quarter 2012 [overall] net income is forecast to be in the $0.50-0.55 per diluted share range,” Rupp added.

($1 = €0.76)

By: Samuel Wong

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