Olin Corp. has a market cap of $1.59 billion; its shares were traded at around $20.23 with a P/E ratio of 14.5 and P/S ratio of 1. The dividend yield of Olin Corp. stocks is 3.9%.OLN is in the portfolios of John Buckingham of Al Frank Asset Management, Inc., Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
Highlight of Business Operations:Selling and administration expenses for the three months ended March 31, 2010 decreased $7.1 million, or 18%, from the three months ended March 31, 2009 primarily due to a lower provision for doubtful customer accounts receivable of $4.6 million, decreased management incentive compensation of $2.1 million, which was offset by increased mark-to-market adjustments on stock-based compensation of $2.2 million, lower consulting fees of $1.0 million, decreased salary and benefit costs of $0.6 million, a favorable foreign currency impact of $0.6 million and a lower level of legal and legal-related settlement expenses of $0.5 million. Selling and administration expenses as a percentage of sales were 9% in 2010 and 10% in 2009.
Chlor Alkali posted segment income of $10.6 million for three months ended March 31, 2010 compared to $68.7 million for the same period in 2009, a decrease of $58.1 million, or 85%. Chlor Alkali segment income was lower primarily due to lower ECU netbacks ($103.3 million) and lower earnings of non-consolidated affiliates ($12.6 million) primarily related to lower ECU netbacks at SunBelt, partially offset by increased volumes ($38.2 million) and decreased operating costs ($19.6 million), primarily raw materials and electricity.
Winchester sales were $131.4 million for the three months ended March 31, 2010 compared to $132.9 million for the three months ended March 31, 2009, a decrease of $1.5 million, or 1%. Sales of ammunition to domestic and international commercial customers decreased $7.3 million. These decreases were offset by higher shipments to military customers of $2.4 million, increased shipments to industrial customers, who primarily supply the construction sector, of $1.4 million and higher shipments to law enforcement agencies of $1.0 million.
For the three months ended March 31, 2010, other corporate and unallocated costs were $17.2 million compared with $15.7 million in 2009, an increase of $1.5 million, or 10%. The increase was primarily due to higher stock-based compensation costs of $2.3 million, primarily resulting from mark-to-market adjustments, and increased insurance costs of $1.1 million, partially offset by decreased legal and legal-related settlement expenses of $0.9 million and lower asset retirement obligation charges of $0.6 million.
First quarter 2010 credits for environmental investigatory and remedial activities were $2.0 million, which included $2.6 million of recoveries from third parties for environmental costs incurred and expensed in prior periods. Charges to income for environmental investigatory and remedial activities are forecast to increase to the $6 million to $8 million range in the second quarter of 2010. This second quarter 2010 forecast for environmental investigatory and remedial costs does not include any recovery of costs incurred and expensed in prior periods. Without the 2009 recoveries of $82.1 million of environmental costs incurred and expensed in prior periods, we anticipate that the full year 2010 charges for environmental investigatory and remedial activities will be 5% to 10% greater than the 2009 level of $24.1 million. We do believe that there are additional opportunities to recover environmental costs incurred and expensed in prior periods in 2010, but the timing and the amount of any additional recoveries are uncertain.
In 2010, we expect our capital spending to be in the $70 million to $80 million range, which includes bleach manufacturing and shipping by railroad expansion projects at three of our chlor alkali facilities. This anticipated 2010 capital spending compares with the 2009 capital spending of $137.9 million. We are also in the process of initiating construction of a low salt, high strength bleach facility that will double the concentration of the bleach we manufacture, which should significantly reduce transportation costs. Capital spending for this project, which is expected to be in the $15 million to $20 million range, should occur in 2010 and 2011. Additional investments in low salt, high strength bleach are being evaluated. As a result of the capitalization of the St. Gabriel, LA conversion and expansion project in late 2009, we expect 2010 depreciation expense to be in the $85 million to $90 million range.
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