Olin Corp. (NYSE:OLN) Q1 2018 Earnings Conference Call - Final Transcript

May 02, 2018 • 10:00 am ET


Olin Corp. (NYSE:OLN) Q1 2018 Earnings Conference Call - Final Transcript


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Good day and welcome to the Olin Corporation, First Quarter 2018 Earnings Conference Call. All participants will be in listen only mode. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Larry Kromidas, Director of Investor Relations. Please go ahead.

Larry P. Kromidas

Thank you, Nicole. Good morning, everyone. Before we begin this morning, I want to remind everyone that this presentation along with the associated slides, and the question and answer session, following our prepared remarks will include statements regarding estimates of future performance. Please note that these are forward looking statements and actual results could differ materially from those projected.

Some of the factors that could cause actual results to differ from our projections are described without limitations in the risk factors section of our most recent form 10-K and in yesterday's press release. Copy of today's transcript and slides will be available on our website in the Investor Section under Calendar of Events. The earnings press release and other financial data and information are available under press releases.

With me this morning are John Fischer, Olin's Chairman, President and Chief Executive Officer; Pat Dawson, Executive Vice President and President, Epoxy and International; John McIntosh, Executive Vice President Synergies and Systems; Jim Varilek, Executive Vice President and President, Chlor Alkali Products and Vinyls and Services; and Todd Slater, Vice President and Chief Financial Officer.

Now, I'd like to turn the call over to John Fischer. John.

John E. Fischer

Thank you, Larry. Good morning and thank you for joining us today. During this morning's call, I will begin by highlighting four key takeaways from Olin's first quarter, then I will describe our improving outlook for 2018. Followed by a more detailed discussion of each of our business segments.

Let's turn to slide three. During the first quarter and into April, Olin successfully completed the most significant of our 2018 plan maintenance turnarounds. Our first quarter 2018 results included approximately $92 million of plan maintenance turnaround costs, to chlor alkali plan maintenance turnarounds in Freeport, Texas and Plaquemine in Louisiana that began in the first quarter were completed on schedule in April. In addition, the plan maintenance turnaround at McIntosh, Alabama that began a couple weeks ago, was also completed by the end of April.

The Freeport Texas Epoxy plan maintenance turnaround that began in February was also completed in April. This two months of Epoxy turnaround was last performed six years ago. Included in the slides in the appendix of this presentation or the details of our actual and forecasts and maintenance turnaround costs by quarter and by business segment. Overall, we continue to forecast the full year turnaround costs will be approximately $30 million lower than full year 2017 costs.

Also, during the first quarter of 2018, we continue to experience a positive pricing environment for the majority of our chemical portfolio. Our first quarter 2018 caustic soda pricing improved approximately 40% year-over-year, and approximately 10% sequentially. During the first quarter, the domestic caustic