Olin(OLN) - 2024 Q4 - Annual Report

Financial Performance - Olin Corporation reported net income of $105.0 million for the year ended December 31, 2024, a decrease of 77.7% compared to$ 452.0 million in 2023[320]. - Total sales for Olin Corporation were $6,540.1 million in 2024, down 4.3% from$ 6,833.0 million in 2023[320]. - The company's operating income fell to $296.5 million in 2024, a decline of 58.3% from$ 712.1 million in 2023[320]. - Olin Corporation's total assets decreased to $7,579.1 million as of December 31, 2024, compared to$ 7,713.2 million in 2023, reflecting a reduction of 1.7%[318]. - The company's total liabilities increased to $5,523.7 million in 2024, up from$ 5,444.9 million in 2023, representing a rise of 1.4%[318]. - Olin Corporation's retained earnings decreased to $2,357.5 million in 2024, down from$ 2,583.7 million in 2023, a decline of 8.7%[318]. - The total equity of Olin Corporation decreased to $2,055.4 million in 2024 from$ 2,268.3 million in 2023, reflecting a decline of 9.4%[326]. - Olin Corporation's net income for 2024 was $105.0 million, a decrease of 76.8% compared to$ 452.0 million in 2023[328]. - Common stock repurchased and retired in 2024 amounted to $300.3 million, a reduction of 57.8% compared to$ 711.3 million in 2023[328]. - The company declared dividends of $0.80 per share for 2024, consistent with the previous two years[326]. Segment Performance - Chlor Alkali Products and Vinyls segment represented 55% of 2024 sales, Epoxy segment 20%, and Winchester segment 25%[9]. - The Epoxy segment benefits from integration into low-cost feedstocks, producing a full range of epoxy materials and precursors[29]. - The Epoxy segment serves diverse applications focused on sustainability, including wind energy and protective coatings, primarily in North America and Western Europe[30]. - The company maintains a reliable supply of key raw materials for the Epoxy segment, including chlorine, caustic soda, cumene, and propylene[32]. - The Chlor Alkali Products and Vinyls segment is one of the largest global marketers of caustic soda, allowing cost-effective supply to customers worldwide[14]. - Olin's Winchester segment focuses on expanding market participation in higher value add platform products to align with growing end-use markets[37]. Joint Ventures and Acquisitions - The joint venture Blue Water Alliance (BWA) with Mitsui began operations in 2023, focusing on globally traded caustic soda and EDC, with Olin holding a 51% interest[19]. - A new joint venture, Hidrogenii, LLC, was launched with Plug Power, aiming to construct a 15-ton-per-day hydrogen liquefaction plant expected to start operations in early 2025[20]. - Olin acquired the assets of White Flyer Targets, LLC for$ 63.9 million, enhancing its position in the recreational shooting market[39]. - Olin signed a definitive agreement to acquire AMMO, Inc.'s small caliber ammunition manufacturing assets for $75 million, expected to close in Q2 2025[395]. Market and Sales - Winchester's estimated backlog was approximately$ 1,426 million as of January 31, 2025, with 70% expected to be fulfilled in 2025[54]. - In 2024, Winchester was awarded contracts to manufacture 5.56mm, 7.62mm, and .50 caliber ammunition, maintaining its leading position as a supplier to the U.S. military[46]. - Approximately 29% of Olin's 2024 sales were generated outside the U.S., with 12% from the Winchester segment[50]. - Winchester's new ammunition products received multiple awards, including the "Ammunition Product of the Year" from American Rifleman magazine in 2025 and 2022[42]. - Winchester's sales to U.S. government agencies accounted for approximately 11% of total sales in 2024[53]. - The company has strong relationships with traditional dealers, distributors, and mass merchants, enhancing its market reach[41]. Cost Management and Operational Efficiency - The company emphasizes cost management and continuous improvement to maintain a strong competitive position in the chlor alkali industry[26]. - The Epoxy segment's production economics benefit from its integration into chlor alkali and aromatics, providing operational flexibility[32]. - Olin's Epoxy segment is focused on optimizing cost positions in the Americas and Europe through supply chain improvements[36]. - The company promotes a culture of continuous improvement with a "Be Better Today" mindset to drive down costs[49]. Financial Liabilities and Assets - Long-term borrowings as of December 31, 2024, totaled $2,842.2 million, with$ 1,063.4 million issued at variable rates[293]. - The company maintained open positions on commodity contracts with a notional value of $204.5 million as of December 31, 2024[291]. - A 10% increase in commodity prices would lead to a$ 20.5 million increase in inventory costs, offset by related hedging instruments[291]. - Unfavorable currency movements of 10% would negatively affect the fair values of derivatives held to hedge currency exposures by $13.4 million[292]. - Environmental liabilities recorded by the company amounted to$ 156.5 million as of December 31, 2024[313]. - The company incurred restructuring charges of $33.3 million in 2024, a significant decrease from$ 89.6 million in 2023[320]. - The company incurred charges of $30.2 million,$ 30.1 million, and $24.2 million for investigatory and remedial efforts in 2024, 2023, and 2022, respectively[73]. Research and Development - Research expenditures were$ 18.4 million in 2024, compared to $20.0 million in 2023 and$ 18.3 million in 2022[67]. Corporate Responsibility - The company is committed to corporate responsibility, focusing on environmental, health, safety, and security stewardship[74]. Employee and Labor Relations - As of December 31, 2024, the company had a total of 7,676 employees, with 86% located in the United States[66]. - The company has no labor agreements expiring in Canada and two agreements expiring in the U.S., representing approximately 2% of the global workforce[66].