Olin Profit Falls, Outlook Weak; Stock Down - Update

(RTTNews) - Olin Corp. (OLN) Monday reported a lower profit for the fourth quarter, hurt by a slump at its chlor alkali products and chemical distribution businesses. Revenue for the quarter declined from last year and came in short of Wall Street estimates.

The company provided a soft outlook for the first quarter, citing weakness at chlor alkali segment due to lower ECU netbacks, partly offset by improved volumes and lower costs.

Investors were upset with the announcement and Olin shares dived over 8 percent in after-hours trade on the New York Stock Exchange.

Clayton, Missouri-based Olin posted quarterly net income of $24.7 million or $0.31 per share, compared with $34.6 million or $0.43 per share last year.

On average, 12 analysts polled by Thomson Reuters estimated earnings of $0.31 per share for the quarter. Analysts' estimates typically exclude special items.

Results for the quarter include a $6.5 million gain from the sale of a joint venture stake, $4 million of tax benefit, and $1.4 million of restructuring charges.

Sales for the fourth quarter were lower at $562 million, compared with $587.6 million in the prior year. Analysts estimated sales of $586.46 million for the quarter.

Among segments, chlor alkali sales were lower by $14 million compared with last year as lower selling prices more than offset higher sales volumes. Sales at chemical distribution segment were lower by $28 million from last year. Meanwhile, sales were up by $23 million at the Winchester segment.

For the first quarter, Olin expect earnings in the range of $0.30 to $0.35 per share, while analysts currently expect $0.46 per share.

Olin stock closed Monday at $26.90, up $0.07 or 0.26%, on a volume of 2 million shares. In after hours, the stock dropped $2.17 or 8.07% at $24.73.