Olin Corporation Reports First Quarter Results

    NORWALK, Conn., April 23 /PRNewswire/ -- Olin Corporation (NYSE:   OLN)
 today announced first quarter fully diluted earnings from continuing
 operations of $.80 per share, compared with $.96 per share for the first
 quarter of 1996.  Net income from continuing operations for the first quarter
 of 1997 was $41.8 million compared with $50.7 million in 1996.  The 1996
 results include a $7 million pretax gain (or $.09 per share) from the sale of
 its corporate headquarters.  Total company fully diluted earnings per share
 and net income reported for the first quarter of 1996 were $.85 per share and
 $45.0 million, respectively.
     Sales and operating income for the first quarter of 1997 were $591.2 and
 $61.5 million, respectively.  On a comparable basis, excluding the results of
 the isocyanates businesses sold in December of 1996, sales and operating
 income in the first quarter of 1996 were $611.4 million and $54.1 million
 respectively.  On this basis, 1997 results represent a 3% reduction in sales,
 but a 14% increase in operating income.
     Donald W. Griffin, chairman, president and chief executive officer said,
 "Our first quarter results reflect continuing broad-based demand for chlorine,
 caustic soda, pool chemical products, lower SG&A costs in our chemicals
 operations, offset by lower demand in several metals markets and
 microelectronic materials.  We believe that demand will improve for our
 microelectronic materials as the year progresses."
     The following commentary compares segment operating income for the first
 quarter of 1997 and 1996:
 
     CHEMICALS
     Chemicals segment operating income was $49.4 million in the first quarter
 of 1997, compared with $60.4 million as reported for 1996, and $40.9 million
 excluding the TDI/ADI isocyanates business which had record profits in the
 first quarter last year.  Chlor-alkali sales and profits were approximately
 equal to last year, as additional sales volume associated with the acquisition
 of the balance of Niachlor in the first quarter of 1997 offset lower overall
 pricing.  Higher pool chemicals pricing, particularly for HTH(R) calcium
 hypochlorite, led to improved profits with equivalent sales revenues.
 Microelectronic materials sales and income trailed last year due to lower
 industry demand.
 
     METALS and AMMUNITION
     Metals and ammunition operating income was $12.1 million, compared with
 $13.2 million.  Metals sales and profits were reduced as lower shipments of
 cupping and strip products, and start-up costs associated with a new tube mill
 at Indianapolis more than offset higher earnings at A.J. Oster.  Winchester's
 operating results were essentially equal to last year.
 
     INTEREST AND OTHER INCOME ITEMS
     During the first quarter of 1997 the company had interest income of
 approximately $6 million.  During the first quarter of 1996 the company
 completed the sale of its corporate headquarters and recorded a gain of
 approximately $7 million.
 
     SHARE REPURCHASE PROGRAM
     During the first quarter of 1997 the company repurchased 1,035,300 shares
 of its common stock.  The company commenced its share repurchase program in
 late January.  Average shares outstanding in 1997 increased slightly due to
 the cumulative effect of stock option exercises in 1996 and the conversion of
 the ESOP convertible preferred shares, which more than offset the effect of
 the shares repurchased on the average shares outstanding during the quarter.
 
     HTH is a registered trademark of Olin Corporation.
 
                                OLIN CORPORATION
                      Consolidated Statements of Income(a)
                    (In millions, except per share amounts)
 
                                                               Three Months
                                                              Ended March 31,
                                                           1997         1996(b)
 
     Sales                                                $591.2        $692.9
     Cost of Goods Sold                                    449.9         528.4
     Selling and Administration                             72.4          80.9
     Research and Development                                7.4          10.0
        Operating Income                                    61.5          73.6
     Interest Expense                                        7.5           7.9
     Interest Income                                         6.0           0.3
     Other Income(c)                                         3.8          10.5
        Income from Continuing Operations Before Taxes      63.8          76.5
     Income Taxes                                           22.0          25.8
     Income from Continuing Operations                      41.8          50.7
        Loss from Discontinued Operations, Net of Taxes(d)    --          (5.7)
     Net Income                                            $41.8         $45.0
     Net Income (Loss) Per Common Share:
     Primary:
        Continuing operations                              $0.81         $0.99
        Discontinued Operations                               --         (0.12)
     Total Net Income                                      $0.81         $0.87
     Fully Diluted:
        Continuing operations                              $0.80         $0.96
        Discontinued Operations                               --         (0.11)
     Total Net Income                                      $0.80         $0.85
     Dividends Per Common Share                            $0.30         $0.30
     Average Common Shares Outstanding - Primary            51.9          49.6
     Average Common Shares Outstanding - Fully Diluted      52.2          51.9
 
     (a)  Unaudited
     (b)  The three months ended March 31, 1996 operating results include the
          isocyanates businesses which were sold on December 4, 1996 (sales
          $81.5, operating income $19.5, fully diluted earnings per share $.26)
     (c)  The three months ended March 31, 1996 include a gain of $7.0 related
          to the sale of the company's former headquarters in Stamford, CT.
     (d)  Represents the net losses of the former Aerospace and Ordnance
          divisions spun-off as Primex Technologies, Inc. on December 31, 1996.
 
                                OLIN CORPORATION
 
                                                              Three Months
                                                             Ended March 31,
     Segment Information(a)                                1997          1996
 
     Sales:
        Chemicals Continuing Businesses                   $327.2        $333.0
        Chemicals Businesses Sold(b)                          --          81.5
           Total Chemicals                                 327.2         414.5
        Metals & Ammunition                                264.0         278.4
           Total Sales                                    $591.2        $692.9
     Operating Income:
        Chemicals Continuing Businesses                    $49.4         $40.9
        Chemicals Businesses Sold(b)                          --          19.5
           Total Chemicals                                  49.4          60.4
        Metals & Ammunition                                 12.1          13.2
           Total Operating Income                          $61.5         $73.6
 
     Sales Analysis(a)  (percent change from prior year's period)
     Chemicals
        Selling Price                                         (2)%
        Volume                                                (1)%
        Acquisitions                                           2%
        Divestment                                           (20)%
           Total Chemicals                                   (21)%
     Metals & Ammunition
        Selling Price                                         --
        Metal Price Pass-Throughs                             (3)%
        Volume                                                (2)%
           Total Metals & Ammunition                          (5)%
     Total
        Selling Price                                         (1)%
        Metal Price Pass-Throughs                             (1)%
        Volume                                                (2)%
        Acquisitions                                           1%
        Divestment                                           (12)%
           Total                                             (15)%
 
     (a)  Unaudited
     (b)  Represents the sales and operating income of the isocyanates
          businesses which were sold on December 4, 1996.
 
                                OLIN CORPORATION
                         Consolidated Balance Sheets(a)
                                 (in millions)
 
     March 31,                                             1997          1996
     Assets
        Cash & Cash Equivalents                           $249.8          $5.5
        Short-Term Investments                              87.9            --
        Accounts Receivable, Net                           414.7         464.1
        Inventories                                        330.9         384.2
        Other Current Assets                                91.3          70.6
           Total Current Assets                          1,174.6         924.4
        Investments and Advances - Affiliated
         Companies at Equity                                67.2          78.8
        Property, Plant and Equipment
         (Less Accumulated Depreciation of
         $1,454.0 and $1,578.9)                            745.6         820.6
        Other Assets                                       175.7         136.2
        Net Assets of Discontinued Operations(b)              --         269.7
     Total Assets                                       $2,163.1      $2,229.7
 
     Liabilities and Shareholders' Equity:
        Current Debt                                      $134.9        $160.5
        Accounts Payable                                   245.5         245.5
        Accrued Liabilities                                289.9         300.7
           Total Current Liabilities                       670.3         706.7
        Long-Term Senior Debt                              276.3         286.3
        Long-Term Subordinated Debt                           --         125.0
        Other Liabilities                                  283.6         236.7
        Shareholders' Equity:
           Preferred Stock, Par Value $1 Per Share,
            Authorized 10.0 Shares: ESOP Preferred
            Stock, issued 1.0 Shares                          --          75.7
           Common Stock, Par Value $1 Per Share,
            Authorized 60.0 Shares: Issued 51.3 Shares
            (49.7 in 1996)(c)                               51.3          49.7
           Additional Paid-in Capital(c)                   456.1         404.8
           ESOP Obligations                                   --         (22.0)
           Cumulative Translation Adjustment               (14.3)         (4.9)
           Retained Earnings                               439.8         371.7
              Total Shareholders' Equity                   932.9         875.0
     Total Liabilities and Shareholders' Equity         $2,163.1      $2,229.7
 
     (a)  Unaudited
     (b)  Represents the net assets of the former Aerospace and Ordnance
          divisions spun-off as Primex Technologies, Inc. on December 31, 1996
     (c)  1996 amounts have been adjusted for the two-for-one split of the
          company's common stock, effective October 30, 1996.
 
                                OLIN CORPORATION
                    Consolidated Statements of Cash Flows(a)
                                 (in millions)
 
                                                           Three Months Ended
                                                                March 31,
                                                           1997          1996
 
     Operating Activities:
     Income from Continuing Operations                     $41.8         $50.7
     Earnings of Non-consolidated Affiliates                (2.2)         (2.3)
     Depreciation and Amortization                          26.7          33.5
     Deferred Taxes                                          1.8           2.4
     Changes in:
        Receivables                                        (98.9)        (65.2)
        Inventories                                        (12.3)        (26.8)
        Other Current Assets                                (1.6)          2.5
        Accounts Payable and Accrued Liabilities           (45.9)        (50.9)
        Income Taxes Payable                                12.9          18.0
        Noncurrent Liabilities                              (5.0)         (0.9)
     Other Operating Activities                              1.1          (3.3)
     Net Cash and Cash Equivalents used for
      operating activities of continuing operations        (81.6)        (42.3)
     Discontinued Operations:
        Net Loss                                              --          (5.7)
        Change in Net Assets                                  --          13.8
        Net Operating Activities                           (81.6)        (34.2)
     Investing Activities:
     Capital Expenditures                                  (13.9)        (20.7)
     Disposition of Property, Plant and Equipment             --          20.8
     Business Acquired in Purchase Transaction              (2.0)           --
     Proceeds From Sale of Business                           --           5.5
     Taxes Paid on Sale of Businesses                     (112.4)           --
     Purchases of Short-term Investments                   (21.3)           --
     Proceeds From Sale of Short-term Investments           20.7            --
     Investments and Advances - Affiliated
      Companies at Equity                                   (8.6)           --
     Other Investing Activities                              0.1           0.5
        Net Investing Activities                          (137.4)          6.1
     Financing Activities:
     Long-Term Debt Repayments                              (5.0)           --
     Short-Term Debt Borrowings                              1.2          38.4
     Purchase of Olin Common Stock                         (41.4)           --
     Repayment from ESOP                                     5.0            --
     Stock options Exercised                                 1.2           4.0
     Dividends Paid                                        (15.7)        (16.4)
     Other Financing Activities                               --           0.1
        Net Financing Activities                           (54.7)         26.1
     Net Decrease in Cash and Cash Equivalents            (273.7)         (2.0)
     Cash and Cash Equivalents, Beginning of Period        523.5           7.5
     Cash and Cash Equivalents, End of Period             $249.8          $5.5
 
     (a)  Unaudited
 
 

SOURCE Olin Corporation

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