Olin(US:OLN)2024-07-25 20:14Financial Performance - Second quarter 2024 reported net income was $74.2 million, or $0.62 per diluted share, down from $146.9 million, or $1.13 per diluted share in Q2 2023[1] - Adjusted EBITDA for Q2 2024 was $278.1 million, compared to $351.1 million in Q2 2023, reflecting a decrease of approximately 20.8%[1] - Sales in Q2 2024 were $1,644.0 million, a decline from $1,702.7 million in Q2 2023, representing a decrease of about 3.4%[1] - Net income for the six months ended June 30, 2024, was $120.1 million, a significant decrease from $298.7 million in the same period of 2023[37] - The company reported a net income of $72.3 million for the three months ended June 30, 2024, compared to $144.7 million in the same period of 2023[53] Segment Performance - The Chlor Alkali Products and Vinyls segment reported sales of $920.3 million in Q2 2024, down from $1,002.3 million in Q2 2023, with segment earnings decreasing to $99.3 million from $180.1 million[15] - Epoxy segment sales for Q2 2024 were $317.7 million, down from $333.8 million in Q2 2023, with a segment loss of $3.0 million compared to a loss of $0.5 million in the prior year[26] - Winchester segment sales increased to $406.0 million in Q2 2024 from $366.6 million in Q2 2023, with segment earnings rising to $70.3 million from $64.7 million[27] - Chlor Alkali Products and Vinyls segment sales were $920.3 million, down 8.2% from $1,002.3 million year-over-year[47] - Epoxy segment reported a loss of $3.0 million in income before taxes for the three months ended June 30, 2024, compared to a loss of $0.5 million in the same period of 2023[47] - Winchester segment income before taxes increased to $70.3 million, up 8.7% from $64.7 million year-over-year[47] Debt and Liquidity - Olin's net debt as of June 30, 2024, was approximately $2.7 billion, with a net debt to adjusted EBITDA ratio of 2.6 times[7] - Long-term debt increased to $2,789.1 million as of June 30, 2024, compared to $2,591.3 million at the end of 2023, marking a rise of 7.6%[36] - Net debt as of June 30, 2024, was $2,728.8 million, an increase from $2,499.8 million at the end of 2023[55] - The net debt to adjusted EBITDA ratio increased to 2.6 as of June 30, 2024, compared to 1.9 at the end of 2023[55] - The cash balance on June 30, 2024, was $182.1 million, with approximately $1.0 billion of available liquidity[7] Capital Expenditures and Stock Repurchase - Capital expenditures for the first half of 2024 were $100.8 million, down from $128.8 million in the same period of 2023, indicating a decrease of 21.8%[37] - Olin repurchased approximately 1.9 million shares of common stock at a cost of $106.0 million during Q2 2024[29] - The company repurchased $211.4 million of common stock during the first half of 2024, compared to $393.0 million in the same period of 2023[37] Future Outlook - The company anticipates a reduction of approximately $100 million in adjusted EBITDA for Q3 2024 due to costs associated with Hurricane Beryl[2] - The company anticipates potential impacts on future GAAP financial results due to adjustments that cannot be quantified at this time[38] - The board of directors retains discretion over dividend payments, which may change based on current conditions and financial performance[42] Current Assets and Liabilities - Total assets decreased to $7,660.6 million as of June 30, 2024, from $7,713.2 million at the end of 2023, representing a decline of 0.7%[36] - Total current liabilities decreased to $1,439.3 million from $1,528.2 million, a reduction of 5.8%[36] - Cash and cash equivalents increased to $182.1 million from $161.1 million year-over-year, reflecting a growth of 13.1%[37] Environmental and Restructuring Charges - Environmental expenses for the three months ended June 30, 2024, were $(6.4) million, compared to $(13.0) million in the same period of 2023[47] - Restructuring charges for the three months ended June 30, 2024, were $(6.8) million, down from $(19.2) million in the same period of 2023[53]