FREEPORT POWER PRODUCTION REDUCED

Rhea-AI Summary

Olin Corporation (NYSE: OLN) reported mechanical failures affecting two of its six power generation units at the Freeport, Texas facility. While operations are currently reduced, there were no injuries or environmental incidents. The company reassured investors that this issue will not impact its first quarter 2022 adjusted EBITDA outlook. Olin is a leading manufacturer of chemical products and ammunition, emphasizing its strong market position despite operational setbacks.

Positive

• No injuries or environmental incidents reported from the mechanical failures.
• The company maintains its first quarter 2022 adjusted EBITDA outlook.

Negative

• Reduced power generation capacity at the Freeport facility due to mechanical failures.

CLAYTON, Mo., Feb. 16, 2022 /PRNewswire/ -- Olin Corporation (NYSE: OLN) announced that our Freeport, Texas facility experienced mechanical failures at two of its six power generation units over the past weekend. There were no injuries or environmental events; however, our Freeport site is operating at a reduced level of power generation. We do not anticipate any change to our first quarter 2022 adjusted EBITDA outlook.

COMPANY DESCRIPTION

Olin Corporation is a leading vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach, and hydrochloric acid. Winchester's principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.

Visit www.olin.com for more information on Olin.

FORWARD-LOOKING STATEMENTS

This communication includes forward-looking statements. These statements relate to analyses and other information that are based on management's beliefs, certain assumptions made by management, forecasts of future results, and current expectations, estimates and projections about the markets and economy in which we and our various segments operate. The statements contained in this communication that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties.

We have used the words "anticipate," "intend," "may," "expect," "believe," "should," "plan," "outlook," "project," "estimate," "forecast," "optimistic," "target," and variations of such words and similar expressions in this communication to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond our control. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements. We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise. The payment of cash dividends is subject to the discretion of our board of directors and will be determined in light of then-current conditions, including our earnings, our operations, our financial conditions, our capital requirements and other factors deemed relevant by our board of directors. In the future, our board of directors may change our dividend policy, including the frequency or amount of any dividend, in light of then-existing conditions.

The risks, uncertainties and assumptions involved in our forward-looking statements, many of which are discussed in more detail in our filings with the SEC, including without limitation the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2020, and our Quarterly Reports on Form 10-Q and other reports furnished or filed with the SEC, include, but are not limited to, the following:

Business, Industry and Operational Risks

• sensitivity to economic, business and market conditions in the United States and overseas, including economic instability or a downturn in the sectors served by us;
• declines in average selling prices for our products and the supply/demand balance for our products, including the impact of excess industry capacity or an imbalance in demand for our chlor alkali products;
• unsuccessful execution of our strategic operating model, which prioritizes Electrochemical Unit (ECU) margins over sales volumes;
• our reliance on a limited number of suppliers for specified feedstock and services and our reliance on third-party transportation;
• our inability to complete future acquisitions or successfully integrate them into our business;
• failure to control costs and inflation impacts or failure to achieve targeted cost reductions;
• higher-than-expected raw material, energy, transportation, and/or logistics costs;
• the occurrence of unexpected manufacturing interruptions and outages, including those occurring as a result of labor disruptions, production hazards and weather-related events;
• the failure or an interruption of our information technology systems;
• our substantial amount of indebtedness and significant debt service obligations;
• the negative impact from the COVID-19 pandemic and the global response to the pandemic, including without limitation adverse impacts in complying with governmental COVID-19 mandates;
• weak industry conditions affecting our ability to comply with the financial maintenance covenants in our senior secured credit facility;
• failure to identify, attract, develop, retain and motivate qualified employees throughout the organization;
• risks associated with our international sales and operations, including economic, political or regulatory changes;
• the effects of any declines in global equity markets on asset values and any declines in interest rates or other significant assumptions used to value the liabilities in, and funding of, our pension plans;
• adverse conditions in the credit and capital markets, limiting or preventing our ability to borrow or raise capital;
• our long-range plan assumptions not being realized causing a non-cash impairment charge of long-lived assets;

Legal, Environmental and Regulatory Risks

• new regulations or public policy changes regarding the transportation of hazardous chemicals and the security of chemical manufacturing facilities;
• changes in, or failure to comply with, legislation or government regulations or policies, including changes regarding our ability to manufacture or use certain products and changes within the international markets in which we operate;
• unexpected outcomes from legal or regulatory claims and proceedings;
• failure to effectively manage environmental, social and governance (ESG) issues and related regulations, including climate change and sustainability;
• costs and other expenditures in excess of those projected for environmental investigation and remediation or other legal proceedings; and
• various risks associated with our Lake City U.S. Army Ammunition Plant contract and performance under other governmental contracts.

All of our forward-looking statements should be considered in light of these factors. In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of our forward-looking statements.

2022-04

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SOURCE Olin Corporation

FAQ

What caused the power production reduction at Olin's Freeport facility?

Mechanical failures at two of the six power generation units caused the reduced power production.

How will the mechanical issues at Freeport affect Olin's financial outlook?

Olin Corporation does not anticipate changes to its first quarter 2022 adjusted EBITDA outlook despite the mechanical issues.

Is Olin Corporation's Freeport facility operational after the mechanical failures?

Yes, the Freeport facility is operational but at a reduced level of power generation.

What is Olin Corporation's stock symbol?

Olin Corporation is traded under the stock symbol OLN on the NYSE.