US’ Olin Corp Q3 net profit falls 39% on higher operating expenses

26 October 2012 04:44  [Source: ICIS news]

SINGAPORE (ICIS)--Olin Corp has posted a 39% year-on-year decline in third-quarter 2012 net profit at $28.7m (€22.1m) despite a 5.6% increase in sales, the US ammunitions and caustic soda producer said late on Thursday.

Sales for the September quarter totalled $581.2m, up from $550.2m in the same period in 2011, the company said in a statement.

“Third-quarter 2012 results included $47.6m of sales and $1.9m of pre-tax segment income associated with the new chemical distribution segment created by the acquisition of KA Steel Chemicals (KA Steel) on 22 August 2012,” Olin said.

Olin’s cost of goods sold for the third quarter increased by 10% to $475.8m, it said. Operating expenses for the period also included an $8.3m charge related to the acquisition of KA Steel.

Olin incurred one-time costs of $4.9m in the three months to September 2012 associated with two plant start-ups in the chlor-alkali business, it said.

In the first nine months of the year, Olin’s net profit shrank by 48% year on year to $115m, even as sales grew by 5.4%, the company said.

Cost of goods sold for January-September 2012 stood at $1.26bn, compared with $1.21bn in the previous corresponding period, it said.

($1 = €0.77)

By: Pearl Bantillo
+65 6780 4359

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