Olin Corporation, Winchester’s parent company, said it now expects third-quarter 2022 adjusted EBITDA to be in the range of $530 million to $550 million, down from an estimated $620 million due to the weakening global economy.
On July 28, 2022, Olin, which also owns two chemical companies, previously guided third quarter 2022 adjusted EBITDA to decline approximately 15 percent from the second quarter 2022 adjusted EBITDA of $727 million
Scott Sutton, chairman, president and CEO, said, “We have seen global economic conditions worsen faster than expected with an accelerated deterioration in both European and North American demand, particularly in epoxy and vinyl intermediates, which has been aggravated by increased Chinese exports precipitated by continuing weak Chinese domestic demand. Winchester experienced lower-than-expected commercial ammunition volumes as customers’ supply chain inventories were overfilled across some ammunition calibers. Olin proactively further reduced our participation in these weaker markets and increased our purchases of global product liquidity. Olin’s proactive actions and strategy have us well-positioned with a strong balance sheet, meaningful levered free cash flow and solid positive earnings profile, to deliver on our previously anticipated recession scenario results in fourth quarter 2022 and continuing into 2023. Core electrochemical unit (ECU) pricing for merchant chlorine and caustic soda continues to move higher.”
Olin’s three segments include Chlor Alkali Products and Vinyls, Epoxy and Winchester. Olin said it plans to release its third-quarter results on October 27.
