Olin's Q3 Net Income Falls 66%, Vinyl Chloride Plant Resumes Operation
en.Wedoany.com Reported - On October 29, U.S. chemical company Olin Corporation released its third-quarter financial report for the period ended September 30, reporting net income of $14.4 million, down 66.4% from $42.8 million in the same period last year; revenue was $1.7477 billion, up approximately 2% year on year; adjusted EBITDA was $191.4 million, down 13.9% year on year. The company restored normal operation of its vinyl chloride monomer (VCM) production facility during the same period.
Third-quarter sales for the Chlor Alkali Products and Vinyls segment were $850.8 million, down from $924 million in the same period last year; pre-tax income fell from $127.6 million to $71.3 million. Operational issues at the vinyl chloride facility in Freeport, Texas, resulted in additional costs and lost sales, dragging down the segment's quarterly profit by $32.1 million. A decrease in benefits related to the clean hydrogen production tax credit under Section 45V of the U.S. Inflation Reduction Act also negatively impacted segment profit by approximately $27 million.
Third-quarter sales for the Epoxy segment were $412.2 million, up from $349.6 million in the same period last year, with pre-tax income turning from a loss of $32.2 million to a profit of $0.6 million. The company attributed the improvement to cost reductions and higher sales volumes, though demand in the European market remained weak.
Olin expects the operating environment to face further pressure in the fourth quarter, mainly due to year-end customer destocking, rising raw material costs, competition from Asian exports, and planned major equipment maintenance. The company's proposed merger with Huntsman has received shareholder approval from both parties and has completed the waiting period under U.S. antitrust law, and is expected to close in the first quarter of 2027 after obtaining remaining regulatory approvals and satisfying other closing conditions.
