Olin reports Q3 EPS 82c, consensus 74c

Reports Q3 revenue $1.67B, consensus $1.74B. CEO Scott Sutton said, “Despite the contracting demand environment over the last six quarters, Olin’s team continues to prove our model’s resilience and the ability to deliver higher trough level adjusted EBITDA and corresponding cash flows than the previous cycles’ peak results. We continue to prioritize share repurchases from excess cash flow with approximately 8% of outstanding shares repurchased so far in 2023…We have idled our St. Gabriel, Louisiana, facility and our largest chlor alkali plant at our Freeport, Texas facility. This ‘value accelerator initiative’ is expected to reduce our Q4 adjusted EBITDA outlook by approximately $100M compared to our previous expectation; however, we anticipate it should deliver an improved 2024 adjusted EBITDA compared to 2023. We expect Winchester segment Q4 results to be similar to Q3 2023 levels even as we perform our holiday shutdowns. Overall, we expect Olin’s fQ4 2023 adjusted EBITDA to be in the $200M range.”