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Orin (NYSE:OLN) shares fell 8.7% in after-hours trading Thursday after the company said second-quarter profit and revenue fell due to pressure on chemical product prices.
The company also lowered its guidance for the third quarter, citing disruptions A facility in Texas was damaged by Hurricane Beryl.
Its profit was $74.2 million, or $0.62 per share, compared with $146.9 million, or $1.13 per share, a year earlier. Wall Street analysts on average expected the chemicals and ammunition maker to post earnings of $0.690 per share.
Revenue fell about 3% from the same period last year to $1.64 billion, slightly lower than analysts’ expectations of $1.7 billion, according to FactSet.
Sales in its chlor-alkali products and vinyl businesses fell due to weaker prices, but that was partially offset by lower costs and higher sales. Epoxy resin sales also declined due to pricing.
Its Winchester Ammunition division increases sales for military transportation worldwide. Olin completed its acquisition of recreational shooting company White Flyer in the fourth quarter and sales also grew.
“We currently estimate that Olin’s adjusted EBITDA for the third quarter of 2024 will be lower due to lower margins due to incremental costs to resume operations, unabsorbed fixed manufacturing costs and storm-related lost sales,” CEO Ken Lane said in a statement. will be reduced by approximately $100 million.
