US Olin Q1 earnings rise 5% on higher sales

26 April 2013 00:17  [Source: ICIS news]

HOUSTON (ICIS)--US-based chlor-alkali producer Olin on Thursday announced a 1Q 2013 income of $40.5m (€31.2m), up 5% from the $38.7m income from the same period in 2012.

The company had sales of $630.0m in the first quarter, compared with $507.2m in the first quarter of 2012.

Olin’s 1Q 2013 results included pretax structuring charges of $2.3m compared with 1Q 2012 restructuring charges of $1.9m, with the charges primarily associated with a chlor-alkali mercury cell conversion and reconfiguration project and the relocation of its Winchester centrefire ammunition manufacturing operations from Illinois to Mississippi.

Chlor-alkali product sales for 1Q 2013 were $348.9m, compared with $359.7m in the same period of 2012. Chlorine and caustic soda volumes in the first quarter decreased 1.4% compared with 1Q 2012 levels, and hydrochloric acid (HCl) volumes declined 23% during compared with the same period in 2012, the company said.

“In the first quarter of 2013, the chlor-alkali business experienced lower demand and lower year-over-year prices,” president and CEO Joseph Rupp said.

“The pretax contribution from hydrochloric acid sales declined approximately $8m from the record quarterly level in the first quarter of 2012,” Rupp said.

Rupp said 2Q 2013 chlor-alkali segment earnings are expected to decline compared with 2Q 2012 due to higher costs associated with three planned plant turnarounds, continued lower pretax contributions from hydrochloric acid sales and higher depreciation expense.

($1 = €0.77)

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By: Ken Fountain

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