Olin(US:OLN)2025-01-30 21:09Financial Performance - Fourth quarter 2024 reported net income was $10.7 million, or $0.09 per diluted share, a decrease from $52.9 million, or $0.43 per diluted share in Q4 2023[4] - Fourth quarter 2024 adjusted EBITDA was $193.4 million, down from $210.1 million in Q4 2023[4] - Operating income for Q4 2024 decreased to $47.3 million from $99.0 million in Q4 2023, reflecting a decline of 52.3%[35] - Net income attributable to Olin Corporation for Q4 2024 was $10.7 million, down 79.8% from $52.9 million in Q4 2023[35] - Adjusted EBITDA for the year ended December 31, 2024, was $873.9 million, down from $1,310.1 million in 2023, indicating a decline of 33.2%[45] - Interest expense for the three months ended December 31, 2024, was $44.9 million, slightly down from $47.2 million in the same period of 2023[45] - Depreciation and amortization expenses for the year ended December 31, 2024, totaled $518.1 million, compared to $533.4 million in 2023, a decrease of 2.9%[45] - Restructuring charges for the year ended December 31, 2024, amounted to $33.3 million, down from $89.6 million in 2023[45] Sales and Revenue - Sales in the fourth quarter 2024 were $1,671.3 million, compared to $1,614.6 million in Q4 2023, reflecting an increase of approximately 3.5%[4] - Chlor Alkali Products and Vinyls sales increased to $953.7 million in Q4 2024 from $906.1 million in Q4 2023, with segment earnings rising to $75.2 million from $65.9 million[12] - Epoxy sales decreased to $282.2 million in Q4 2024 from $313.1 million in Q4 2023, resulting in a segment loss of $27.4 million compared to a loss of $23.1 million in the prior year[14] - Winchester sales increased to $435.4 million in Q4 2024 from $395.4 million in Q4 2023, but segment earnings fell to $42.0 million from $65.4 million[16] - Total sales for Q4 2024 were $1,671.3 million, a 3.5% increase from $1,614.6 million in Q4 2023[35] - Chlor Alkali Products and Vinyls segment sales increased to $953.7 million in Q4 2024 from $906.1 million in Q4 2023, a growth of 5.7%[38] - The Epoxy segment reported a sales decline to $282.2 million in Q4 2024 from $313.1 million in Q4 2023, a decrease of 9.9%[38] Debt and Cash Position - As of December 31, 2024, Olin had a cash balance of $175.6 million and net debt of approximately $2.7 billion, with a net debt to adjusted EBITDA ratio of 3.1 times[20] - The company's net debt increased to $2,666.6 million as of December 31, 2024, compared to $2,499.8 million in 2023, reflecting a rise of 6.7%[49] - Total debt at the end of 2024 was $2,842.2 million, compared to $2,670.1 million in 2023, marking an increase of 6.4%[49] - The net debt to adjusted EBITDA ratio rose to 3.1 as of December 31, 2024, up from 1.9 in 2023, indicating increased leverage[49] Shareholder Returns - The company repurchased approximately 5.9 million shares at a cost of $300.3 million during 2024, with $2.0 billion available under share repurchase authorizations[21] - Dividends per common share remained stable at $0.20 for both Q4 2024 and Q4 2023[35] Future Outlook - The company expects first quarter 2025 adjusted EBITDA to be in the range of $150 million to $170 million, lower than Q4 2024[8] - Olin plans to enter the domestic PVC resin market in Q1 2025 through an EDC tolling agreement, enhancing its chlorine optionality[5] Asset Management - Total assets decreased to $7,579.1 million as of December 31, 2024, down from $7,713.2 million in 2023[42] - Cash and cash equivalents increased slightly to $175.6 million at the end of 2024 from $170.3 million at the end of 2023[42] Non-Recurring Items - The company recorded certain non-recurring items, including a gain of $27.0 million from the sale of its domestic private trucking fleet in 2023[47] - Other operating income for the year ended December 31, 2023 included a $27.0 million gain from the sale of Olin's domestic private trucking fleet[41] Management Commentary - Olin Corporation's management emphasized the importance of adjusted EBITDA as a measure of financial performance, excluding the effects of financing methods and capital structures[48]