Q2 2024 Olin Corp Earnings Call Transcript
Key Points
- Olin Corp (OLN) demonstrated strong resilience and effective crisis management during Hurricane Beryl, ensuring the safety of all team members and limiting asset damage.
- The company maintained its investment-grade balance sheet and strong liquidity, ending the quarter with $182.1 million in cash and cash equivalents and approximately $1 billion in available liquidity.
- Winchester's military revenues showed continued strength, with expectations for significant growth in the second half of 2024 and beyond, driven by global defense spending.
- Olin Corp (OLN) successfully deferred $80 million in international tax payments to 2025, improving cash flow projections for the second half of 2024.
- The company remains focused on cost discipline and cash generation, reducing capital expenditures and maintaining a disciplined capital allocation strategy.
- Hurricane Beryl is expected to represent a setback for Olin Corp (OLN)'s chemicals businesses, with an estimated impact of approximately $100 million during the third quarter.
- The industrial economic trough is anticipated to be longer-lived than typical, affecting customer demand and global supply.
- Olin Corp (OLN) has lowered its full-year 2024 adjusted EBITDA outlook due to the hurricane's impact and ongoing economic challenges.
- The epoxy business faces challenges from both the impact of Hurricane Beryl and a plant turnaround in Stade, Germany, with additional pressure from government-subsidized dumping of epoxy.
- Commercial ammunition sales for Winchester were sequentially lower, and rising propellant costs and reduced availability generated a headwind.
Good morning, and welcome to Olin Corporation's second-quarter 2024 earnings conference call. (Operator Instructions)
Please note, this event is being recorded. I would now like to turn the conference over to Steve Keenan, Olin's Director of Investor Relations. Please go ahead, Steve.
Thank you. Good morning, everyone, and thank you for joining us today. Before we begin, I'll remind you that this discussion, along with the associated slides and the question-and-answer session that follows, will include statements regarding estimates or expectations of future performance.
Please note that these are forward-looking statements and that actual results could differ materially from those projected. Some of the factors that could cause actual results to differ from our projections are described without limitations in the Risk Factors section of our most recent Form 10-K and in yesterday's second-quarter earnings press release.
A copy of today's transcript and slides will be available
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