2023-06-20 09:09:36 ET
Olin ( NYSE: OLN ) -4.4% pre-market Tuesday after lowering guidance for Q2 adjusted EBITDA to $350M-$360M, citing an expected $50M impact from an extended vinyl chloride monomer plant turnaround and a lower market participation rate by the company in the face of deteriorating market conditions.
Olin ( OLN ) said the planned maintenance turnaround at its Freeport, Texas, vinyl chloride monomer plant required an extension of about seven weeks and resulted in higher unabsorbed fixed manufacturing costs, reduced profit from lost sales and higher turnaround expense; the plant has since returned to operations at a reduced rate.
Olin ( OLN ) also said it will cease all operations at its Gumi, South Korea, facility, reduce epoxy resin and upstream capacity at its Freeport plant, and reduce sales and support staffing across Asia.
The company said Q2 results will include ~$12M of restructuring charges associated with the plans, of which $6M represents non-cash asset impairment charges.
The latest restructuring actions, combined with those announced March 21, will complete the rightsizing of the Epoxy business and are expected to deliver $50M of improved annual EBITDA beginning in Q4, the company said.
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Olin cuts Q2 EBITDA guidance, plans additional epoxy restructuring actions