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Dec 31, 2020
Olin Q4 2020 Earnings Report
Olin reported a net loss of $33.0 million and adjusted EBITDA of $246.2 million for Q4 2020.
Key Takeaways
Olin Corporation announced its Q4 2020 financial results, reporting a net loss of $33.0 million, or $0.21 per diluted share, compared to a net loss of $77.2 million in Q4 2019. Sales for the quarter were $1,654.1 million, up from $1,387.1 million in the same period last year. Winchester achieved record quarterly segment earnings.
Net loss for Q4 2020 was $33.0 million, or $0.21 per diluted share.
Adjusted EBITDA for Q4 2020 was $246.2 million.
Sales for Q4 2020 reached $1,654.1 million.
Winchester achieved record quarterly segment earnings.
Olin
Olin
Olin Revenue by Segment
Revenue by Segment
Chlor Alkali & Vinyls Revenue
CapyFin.comEpoxy Revenue
CapyFin.comWinchester Revenue
CapyFin.com Forward Guidance
Olin anticipates a sequential improvement in adjusted EBITDA for Q1 2021 compared to Q4 2020.
Positive Outlook
- Expects the winning model to push the ECU PCI higher, particularly in Epoxy.
- Recent price increase announcements for chlorine, epichlorohydrin, epoxy resins, bleach, ethylene dichloride and chlorinated organics forecast to positively contribute.
- Productivity actions are expected to favorably contribute to first quarter 2021 results.
- Expects sequential improvement in adjusted EBITDA for first quarter 2021.
- Winchester business delivered the strongest quarterly earnings in its history due to outstanding execution by the team, with even higher performance expected in 2021.
Challenges Ahead
- Expects some volume offsets as Olin continues to selectively sell less into poor quality markets.
- Remains disciplined in approach to caustic soda.
- Sensitivity to economic, business and market conditions in the United States and overseas.
- Cyclical nature of operating results, particularly declines in average selling prices in the chlor alkali industry and the supply/demand balance for products.
- Reliance on a limited number of suppliers for specified feedstock and services and reliance on third-party transportation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income