Olin Corp. (NYSE:OLN) Q3 2019 Earnings Conference Call Transcript
Nov 01, 2019 • 10:00 am ET
Good morning and welcome to the Olin Corporation Third Quarter 2019 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Logan Bonacorsi, Olin's Director of Investor Relations. Please go ahead, Miss.
Good morning, everyone and thank you for joining us today. Before we begin, let me remind you 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 that 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 third-quarter earnings press release. A copy of today's transcript and slides will be available on our website in the Investors Section under Past 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; Jim Varilek, Executive Vice President and Chief Operating Officer and Todd Slater, Vice President and Chief Financial Officer. We will begin with our prepared remarks and thereafter, we will be happy to take your questions.
I will now turn the call over to John Fischer, John?
John E. Fischer
Thank you, Logan, and good morning, everyone. Today, I'll begin my remarks by discussing the key points from the third quarter followed by our updated outlook for the remainder of 2019. A detailed overview of each of Olin's business segments. Our long-term view on market dynamics for Chlor Alkali and Epoxy and conclude with the Winchester segment.
With that, let's turn to Slide 3. During the third quarter of 2019 , Olin reported adjusted EBITDA of approximately $293 million. While this represents a year-over-year decline results for the quarter improved 43% sequentially despite a challenging economic backdrop. Third quarter results benefited from lower planned maintenance turnaround costs, strong operating performance, the resolution of the onetime events that affected the Epoxy business during the second quarter as well as seasonally higher volumes across our business segments. However, several challenges during that period worked to offset these positives.
Beginning in the middle of the third quarter, we saw a significant slowdown in demand from a broad spectrum of chemical customers. We experienced slower-than-expected demand from urethane, agricultural, refrigerant, alumina, pulp and paper, automotive, electrical laminate and industrial coatings customers. In addition to lower volumes, lower customer demand negatively affected prices for several products. We experienced lower pricing for caustic soda, ethylene dichloride, hydrochloric acid, chlorinated organics and epoxy resins.
Moving now to our updated outlook for the full year, 2019, which is on Slide 4. We expect full year 2019 adjusted EBITDA to be between $930 million and $980 million. This compares to full year 2018 adjusted EBITDA of $1.265 billion. The year-over-year decline in adjusted EBITDA