CLAYTON, Mo., Sept. 29, 2017 /PRNewswire/ -- Olin
Corporation (NYSE: OLN) announced that it is lifting the Force
Majeure declared on August 31, 2017
for all product shipments, except phenol, acetone, methyl chloride,
methylene chloride and chloroform, from its Freeport, Texas facility.
Olin was forced to reduce production at the facility due to
supply and logistic constraints from truck, railroad and marine
transportation caused by severe flooding resulting from Hurricane
Harvey. Olin's third quarter 2017 adjusted EBITDA will be
reduced by approximately $40 million
representing incremental costs to continue operations, unabsorbed
fixed manufacturing costs and reduced profit from lost sales.
Isolated transportation, raw material and customers' issues will
continue to be experienced in both the Chlor Alkali Products and
Vinyls and Epoxy segments into fourth quarter 2017. The
impact on fourth quarter 2017 adjusted EBITDA is expected to be
significantly less than the third quarter 2017 impact.
COMPANY DESCRIPTION
Olin Corporation is a leading vertically-integrated global
manufacturer and distributor of chemical products and a leading
U.S. manufacturer of ammunition. The chemical products
produced include chlorine and caustic soda, vinyls, epoxies,
chlorinated organics, bleach and hydrochloric acid.
Winchester's principal manufacturing facilities produce and
distribute sporting ammunition, law enforcement ammunition,
reloading components, small caliber military ammunition and
components, and industrial cartridges.
Visit www.olin.com for more information on Olin.
FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements.
These statements relate to analyses and other information that are
based on management's beliefs, certain assumptions made by
management, forecasts of future results, and current expectations,
estimates and projections about the markets and economy in which we
and our various segments operate. These statements may
include statements regarding the October
2015 transaction to acquire the business (the Acquired
Business) from The Dow Chemical Company (TDCC), the expected
benefits and synergies of the transaction, and future opportunities
for the combined company following the transaction. The
statements contained in this communication that are not statements
of historical fact may include forward-looking statements that
involve a number of risks and uncertainties.
We have used the words "anticipate," "intend," "may," "expect,"
"believe," "should," "plan," "project," "estimate," "forecast,"
"optimistic," and variations of such words and similar expressions
in this communication to identify such forward-looking
statements. These statements are not guarantees of future
performance and involve certain risks, uncertainties and
assumptions, which are difficult to predict and many of which are
beyond our control. Therefore, actual outcomes and results
may differ materially from those matters expressed or implied in
such forward-looking statements. We undertake no obligation
to update publicly any forward-looking statements, whether as a
result of future events, new information or otherwise.
Relative to the dividend, the payment of cash dividends is subject
to the discretion of our board of directors and will be determined
in light of then-current conditions, including our earnings, our
operations, our financial conditions, our capital requirements and
other factors deemed relevant by our board of directors. In
the future, our board of directors may change our dividend policy,
including the frequency or amount of any dividend, in light of
then-existing conditions.
The risks, uncertainties and assumptions involved in our
forward-looking statements, many of which are discussed in more
detail in our filings with the SEC, including without limitation
the "Risk Factors" section of our Annual Report on Form 10-K for
the year ended December 31, 2016,
include, but are not limited to, the following:
- sensitivity to economic, business and market conditions in
the United States and overseas,
including economic instability or a downturn in the sectors served
by us, such as ammunition, vinyls, urethanes, and pulp and paper,
and the migration by United States
customers to low-cost foreign locations;
- the cyclical nature of our operating results, particularly
declines in average selling prices in the chlor alkali industry and
the supply/demand balance for our products, including the impact of
excess industry capacity or an imbalance in demand for our chlor
alkali products;
- higher-than-expected raw material and energy, transportation,
and/or logistics costs;
- our substantial amount of indebtedness and significant debt
service obligations;
- weak industry conditions could affect our ability to comply
with the financial maintenance covenants in our senior credit
facilities and certain tax-exempt bonds;
- our reliance on a limited number of suppliers for specified
feedstock and services and our reliance on third-party
transportation;
- failure to control costs or to achieve targeted cost
reductions;
- the occurrence of unexpected manufacturing interruptions and
outages, including those occurring as a result of labor disruptions
and production hazards;
- new regulations or public policy changes regarding the
transportation of hazardous chemicals and the security of chemical
manufacturing facilities;
- changes in legislation or government regulations or
policies;
- economic and industry downturns that result in diminished
product demand and excess manufacturing capacity in any of our
segments and that, in many cases, result in lower selling prices
and profits;
- complications resulting from our multiple enterprise resource
planning (ERP) systems;
- the failure or an interruption of our information technology
systems;
- unexpected litigation outcomes;
- costs and other expenditures in excess of those projected for
environmental investigation and remediation or other legal
proceedings;
- the integration of the Acquired Business may not be successful
in realizing the benefits of the anticipated synergies;
- the effects of any declines in global equity markets on asset
values and any declines in interest rates used to value the
liabilities in our pension plan;
- fluctuations in foreign currency exchange rates;
- adverse conditions in the credit and capital markets, limiting
or preventing our ability to borrow or raise capital;
- failure to attract, retain and motivate key employees;
- our assumptions included in long range plans not realized
causing a non-cash impairment charge of long-lived assets;
- the effects of restrictions imposed on our business following
the transaction with TDCC in order to avoid significant tax-related
liabilities; and
- differences between the historical financial information of
Olin and the Acquired Business and our future operating
performance.
All of our forward-looking statements should be considered in
light of these factors. In addition, other risks and
uncertainties not presently known to us or that we consider
immaterial could affect the accuracy of our forward-looking
statements.
2017-18
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SOURCE Olin Corporation