Core Viewpoint - Olin Corporation (OLN) has agreed to acquire AMMO, Inc.'s small-caliber ammunition manufacturing assets for $75 million, which will enhance its Winchester unit and is expected to generate significant synergies and incremental EBITDA [1][2][3]. Group 1: Acquisition Details - The acquisition includes AMMO's brass shellcase capabilities and a 185,000-square-foot production facility in Manitowoc, WI, which aligns well with Winchester's existing production capabilities [2]. - The transaction is expected to be financed through Olin's available liquidity and is anticipated to close in the second quarter of 2025, subject to customary terms and conditions [1][3]. - The Manitowoc assets are projected to generate $15-$20 million of incremental adjusted EBITDA in the first year post-acquisition [3]. Group 2: Strategic Implications - This acquisition is part of OLN-Winchester's strategy to identify and secure small bolt-on opportunities that are highly strategic and immediately accretive to the company [3]. - The buyout is expected to deliver synergies of $40 million, enabling greater specialization and broader participation across high-margin specialty calibers [2]. Group 3: Market Performance - OLN's stock has experienced a decline of 33.4% over the past year, contrasting with a 4.5% decline in the industry [3].

Core Viewpoint - Olin Corporation has entered into a definitive agreement to acquire AMMO, Inc.'s small caliber ammunition manufacturing assets for $75 million, which will enhance Olin's Winchester Ammunition business and is expected to generate significant synergies and incremental EBITDA [1][3]. Acquisition Details - The acquisition includes AMMO's brass shellcase capabilities and a 185,000 square foot production facility in Manitowoc, Wisconsin, built in 2022 [2]. - The transaction will be funded through available liquidity and is expected to close in the second quarter of 2025, subject to customary terms and conditions [1][3]. Strategic Benefits - The Manitowoc assets will enhance Winchester's production capabilities, allowing for greater specialization in high-margin specialty calibers and driving cost reductions in existing high-volume products [2][3]. - The acquisition is anticipated to yield realized synergies of $40 million and generate $15 million to $20 million of incremental adjusted EBITDA in the first year [2][3]. Company Overview - Olin Corporation is a leading vertically integrated global manufacturer and distributor of chemical products and ammunition, with Winchester producing various types of ammunition including sporting and military [4].

Company Overview - Olin Corporation is a leading vertically integrated global manufacturer and distributor of chemical products and a prominent U.S. manufacturer of ammunition [4] - The chemical products produced by Olin include chlorine, caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid [4] - Winchester, a division of Olin, manufactures and distributes various types of ammunition including sporting, law enforcement, reloading components, small caliber military ammunition, industrial cartridges, and clay targets [4] Upcoming Financial Results - Olin Corporation will review its fourth quarter 2024 financial results on January 31, 2025, at 9:00 a.m. Eastern time [1] - A press release with financial statements and segment information will be distributed after the market closes on January 30, 2025 [1] Conference Call Information - U.S. callers can access the conference call toll-free at (877) 883-0383, while Canadian callers can dial (877) 885-0477, and international callers can reach (412) 902-6506 [2] - The call will also be available via a live webcast on the company's website, and participants are advised to log on 15 minutes prior to the start [2] Replay Information - The webcast will be available for replay on the company's website for one year following the call [3] - A telephonic replay will be available starting at 12:00 p.m. Eastern time for 7 days, with specific access numbers for U.S., Canadian, and international callers [3]

Group 1 - Olin Corporation's shares experienced a significant decline of approximately 38% in 2024 due to weak demand from China and challenges in the construction sector [1] - The ongoing downturn in the construction sector has adversely affected Olin Corporation's performance [1] Group 2 - The article reflects a contrarian investment approach based on macroeconomic views and stock-specific turnaround stories [1]

Financial Performance - Third quarter 2024 net loss of $24.9 million, or $0.21 per diluted share, compared to net income of $104.1 million, or $0.82 per diluted share in Q3 2023[1] - Adjusted EBITDA for Q3 2024 was $160.3 million, down from $314.8 million in Q3 2023, with sales of $1,589.5 million compared to $1,671.4 million in the prior year[1] - Operating income for Q3 2024 was $15.5 million, down 90.7% from $166.0 million in Q3 2023[16] - Net loss attributable to Olin Corporation for Q3 2024 was $24.9 million, compared to a net income of $104.1 million in Q3 2023[16] - Net income for the nine months ended September 30, 2024, was $94.9 million, a decrease from $403.2 million for the same period in 2023[21] - Adjusted EBITDA for the nine months ended September 30, 2024, was $680.5 million, down from $1,100.0 million in the same period of 2023[23] - The trailing twelve months Adjusted EBITDA as of September 30, 2024, was $890.6 million, compared to $1,310.1 million for the previous period[26] Segment Performance - Winchester segment sales increased to $432.8 million in Q3 2024 from $380.2 million in Q3 2023, driven by higher military sales and the acquisition of White Flyer[7] - Chlor Alkali Products and Vinyls segment earnings fell to $45.3 million in Q3 2024 from $172.3 million in Q3 2023, impacted by $76.7 million in additional costs due to Hurricane Beryl[5] - Epoxy segment reported a loss of $42.8 million in Q3 2024, compared to a loss of $28.8 million in Q3 2023, with sales decreasing to $285.1 million from $321.6 million[6] - Chlor Alkali Products and Vinyls segment sales decreased to $871.6 million in Q3 2024 from $969.6 million in Q3 2023, a decline of 10.1%[18] - The Winchester segment reported sales of $432.8 million in Q3 2024, an increase of 13.8% from $380.2 million in Q3 2023[18] Cash Flow and Debt - As of September 30, 2024, the cash balance was $225.9 million, with net debt of approximately $2.7 billion and a net debt to adjusted EBITDA ratio of 3.0 times[9] - Cash and cash equivalents increased to $225.9 million as of September 30, 2024, compared to $170.3 million at the end of 2023[20] - Long-term debt increased to $2,765.6 million as of September 30, 2024, from $2,591.3 million at the end of 2023[20] - Net debt as of September 30, 2024, increased to $2,663.6 million from $2,499.8 million at the end of 2023[26] - The Net Debt to Adjusted EBITDA ratio rose to 3.0 as of September 30, 2024, compared to 1.9 at the end of 2023[26] Shareholder Returns and Capital Allocation - Approximately 1.0 million shares of common stock were repurchased at a cost of $45.4 million during Q3 2024, with $0.7 billion available under the share repurchase authorization[9] - The company remains focused on a value-driven commercial model and capital allocation strategy to enhance cash flows and return cash to shareholders[3] Impact of Hurricane Beryl - Hurricane Beryl is expected to result in a total impact of approximately $135 million in 2024, with an additional $9.4 million impact in Q3 2024 and a projected $25 million residual impact in Q4 2024[2] Other Financial Metrics - Total sales for Q3 2024 were $1,589.5 million, a decrease of 4.9% from $1,671.4 million in Q3 2023[16] - Total assets as of September 30, 2024, were $7,518.3 million, down from $7,713.2 million at the end of 2023[20] - Capital expenditures for the nine months ended September 30, 2024, were $144.1 million, down from $173.0 million in the same period of 2023[21] - The company reported a net operating activities cash flow of $361.5 million for the nine months ended September 30, 2024, compared to $557.7 million in the same period of 2023[21] - Long-term debt borrowings net for the nine months ended September 30, 2024, were $216.7 million, slightly up from $206.6 million in the previous year[21] - The company experienced a decrease in inventories, with a change of $32.8 million for the nine months ended September 30, 2024, compared to a decrease of $43.4 million in the same period of 2023[21]

CLAYTON, Mo., Dec. 12, 2024 /PRNewswire/ -- Olin Corporation (NYSE: OLN) will host an Investor Day in New York City today, beginning at 9:00am (ET). The event is expected to conclude at approximately 12:00pm (ET). A live webcast of the presentation, along with the presentation materials, will be available at https://www.olin.com. A replay of the 2024 Investor Day will be available within 24 hours of the event's conclusion.Ken Lane, President & CEO, will be joined by members of the Executive Leadership Team, ...

Olin Corporation (OLN) posted a third-quarter 2024 loss of $24.9 million or loss of 21 cents per share. This compares unfavorably with a profit of $104.1 million or 82 cents per share in the year-ago quarter. The loss per share missed the Zacks Consensus Estimate of earnings of 3 cents.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The chemical maker’s revenues fell roughly 4.9% year over year to $1,589.5 million in the quarter. It beat the Zacks Consensus Estimate of $1,571.1 millio ...

Olin Corp. (NYSE: OLN ) reports many contracts with the U.S. Army and know-how accumulated through many decades in the chemical industry. In my view, ongoing derivative strategies in the chemical global trade industry and investments in the small London Stock Market Research is a service offered by an ex-investment banker from the city of London. After around 11 years in the industry, I decided to drop out, and made dollars out of what I learned in business. I appreciate value investments, and I usually buy ...

Analyst’s Disclosure: I/we have a beneficial long position in the shares of OLN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial advice ...

For the quarter ended September 2024, Olin (OLN) reported revenue of $1.59 billion, down 4.9% over the same period last year. EPS came in at -$0.21, compared to $0.82 in the year-ago quarter.The reported revenue represents a surprise of +1.17% over the Zacks Consensus Estimate of $1.57 billion. With the consensus EPS estimate being $0.03, the EPS surprise was -800.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...