Headline: Olin Shares Plummet Amid Disappointing Q3 Earnings and Hurricane Impact

CLAYTON, Mo. - Olin Corporation (NYSE:OLN) reported third-quarter earnings for 2024 that fell significantly below expectations. The chemical manufacturing company faced challenges from the impact of Hurricane Beryl and weakening demand in its ammunition business, leading to a 14% drop in its shares.

For the quarter ending September 30, the company posted a net loss of $24.9 million, or a loss of $0.21 per share, missing analysts' expectations of a $0.04 per share profit. Revenue reached $1.59 billion, slightly above the $1.58 billion forecast but down 4.9% from $1.67 billion in the same period last year.

Olin's results were heavily impacted by Hurricane Beryl, which resulted in approximately $110 million in additional costs and lost sales during the third quarter. The company estimates the total impact of the hurricane throughout 2024 to reach approximately $135 million.

CEO Ken Lane stated, "During the third quarter, our Olin team worked tirelessly to recover from the effects of Hurricane Beryl." He added that ongoing operational constraints related to the hurricane mandated an additional shutdown despite the team's hard work.

The company's Winchester ammunition segment also underperformed due to weak commercial sales. Lane noted that retail customers experienced lower sales and high inventory levels, which slowed down restocking rates.

Looking ahead, Olin provided fourth-quarter adjusted EBITDA guidance between $170 million and $200 million, reflecting the continuing effects of the hurricane and seasonal weakness in ammunition demand.

Despite these challenges, Lane emphasized the company’s commitment to its value-driven commercial model and capital allocation strategy, stating, "Olin remains disciplined in driving cash flow and prioritizing cash returns to shareholders."