ST. LOUIS– Olin Corp. posted net income of 59 cents per share for the second quarter 2012, up from 52 cents in the same quarter last year. The Clayton, Mo.-based chemical manufacturer said sales fell in the second quarter to $508.7 million, down $20.4 million from the second quarter of last year.
Olin Corp.’s president and CEO Joseph Rupp attributed the decline in sales revenue to a slowdown in chlorine demand in the second half of the quarter. At the same time, bleach and hydrochloric acid brought the company increased earnings compared to second quarter 2011. Sales from Winchester, the gun-manufacturing arm of the company, rose slightly and were “in line” with last quarter, Rupp said.
In a May analysis of Olin Corp., Standard and Poor said it Olin Corp.’s sales grew at a compound rate of 11% per year over the last five years, but the Olin’s sales “have shown an inconsistent pattern of growth.”
Rupp said that Olin’s net income is expected to be between 40 cents and 45 cents for the third quarter because of two plant outages, costs for phasing out mercury from its Niagra Falls bleach plant, and continuing decline in chlorine sales. The company posted net income of 59 cents per share in the year-ago third quarter. In mid-morning trading, Olin Corp.’s stock was trading at $19.83 per share, down 5.57 % from Monday’s close.