Olin Corporation Reports 76% Decline in Net Income for Fiscal Year 2024

Olin Corporation reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with net income falling to $108.6 million, a decrease of 76% from $460.2 million in 2023. This decline was attributed to lower operating results across all business segments, particularly in the Chlor Alkali Products and Vinyls segment, which saw a segment income drop from $664.2 million in 2023 to $296.4 million in 2024. The company’s total sales also decreased by 4%, from $6.83 billion in 2023 to $6.54 billion in 2024, primarily due to lower pricing for caustic soda and other products.

The company faced operational challenges, including the impact of Hurricane Beryl, which resulted in additional costs and lost sales amounting to $126.3 million across its segments. The Chlor Alkali Products and Vinyls segment was particularly affected, incurring $93.6 million in costs related to the hurricane. The Epoxy segment reported a loss of $85 million, compared to a loss of $31 million in the previous year, driven by lower product pricing and the hurricane's impact. Conversely, the Winchester segment experienced a slight decrease in income from $255.6 million in 2023 to $237.9 million in 2024, despite increased sales volumes and international military sales.

Strategically, Olin made notable moves, including the acquisition of White Flyer Targets, LLC for $63.9 million, enhancing its Winchester segment. The company also announced a joint venture with Plug Power, Inc. to advance hydrogen production, with a liquefaction plant expected to begin operations in early 2025. Additionally, Olin's backlog of orders increased significantly, reaching approximately $1.43 billion as of January 31, 2025, compared to $914 million a year earlier, indicating strong future demand, particularly in the Winchester segment.

Operationally, Olin's workforce increased to 7,676 employees as of December 31, 2024, up from 7,326 in 2023. The company reported that approximately 29% of its sales in 2024 were generated outside the U.S., with significant contributions from its Chlor Alkali Products and Vinyls and Epoxy segments. The company also emphasized its commitment to sustainability and cost management, aiming to optimize its operations and reduce expenses in response to market pressures.

Looking ahead, Olin anticipates continued challenges in the first quarter of 2025, with expectations of lower operating results across its Chemicals businesses and the Winchester segment due to softer consumer demand. The company plans to maintain a disciplined approach to market participation while managing costs and enhancing operational efficiencies.