Olin (OLN) 28 Jul 212021 Q2 Earnings call transcript

Good morning, and welcome to Olin Corporation's Second Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Steve Keenan, Olin's Director of Investor Relations. Steve. ahead, go Please

[ph]. today. everyone, Jack for thank joining us Good you, and morning, you Thank

begin, me question-and-answer materially could we expectations are the will Before forward-looking let statements from of associated along this include that note slides those with future discussion, statements performance. projected. and that estimates and differ the regarding session Please follows, remind that or you these that results actual

without factors that Form our could cause in section to section results Factors from available past described yesterday's XX-K second recent the actual projections quarter release. differ of are Investors transcript today's under events. on earnings will of of and limitations in most be Risk website the our press the Some our copy slides A and in

release Epoxy; data Sutton, Chlor are Gumpel, morning are Varilek, earnings and be me begin releases. will President, and Scott with call Scott President, Winchester; remarks, Alkali press and turn will Our Brett financial CFO. Dawson, information your Damian With Pat I'll we brief which other now Flaugher, under available Vinyls; this Sutton. Olin's Olin's Products President, Slater, Jim Olin's CEO; to questions. after the and to some Scott take happy over Todd and COO; press

our Yes, important success. accelerating I our thanks data Look, employees Steve. most Olin And mean to are the hi everybody. is note today

further down momentum. as going this team's forecast runway use a earnings the to we're bit and to So with keep call well our up just

the first from storm EBITDA As XX% by the million, first benefit previously exceed quarter winter did excluding EBITDA adjusted the $XXX quarter. forecasted, in second adjusted or Uri quarter the one-time

And EBITDA adjusted the third EBITDA least as second exceed $X.X be at full-year result adjusted We billion. our quarter expect will also forecast we the to quarter that well.

in Interlinked of what is via we the in The X of lifts Olin's activation activation effect is number order various our combinations stone Generally Olin. stepping for singular grow a across Slide a with Matrix the will expansion knobs value. our are Principally, XXXX the unseen. hands of Matrix because of presentation. activations positive up the opening So of first nodes. Interlinked

the to Olin value effect our elemental order rising activations tie the Fundamental three However, ammunition tie. third a chlorine, is what that whole linchpin primers. are lifts and or second epichlorohydrin, products, multiple

a Our pricing products in those is ratchet.

linchpin chains XXXX, and that some If of Our to turns acquisition phase will But funds chains opportunities traction cash Slide we so, new On differentiated do Olin than X, to shareholders. value sell reverse. closer of in supply more our our XXXX, growth pricing downstream to And is our flow the use we from rate on running now assets, to the which annual our report XXX,XXX an beginning reached of through up second have catch matrix. run else's but here molecules some of accomplishments complement deliver model. machine parlaying XXXX. doing to somebody on tons in And parlaying surface Slide freely activity in Continuing made In particularly should the about quarter, and empty and volume principle market value businesses, to those broad full. the not zero demand ratchet X. in in our into necessary, to gain are supply Across only all does preserve we to outpace our way expect growth. products. one negotiated our the and on based we next

forecast said we this as mechanism in further would into tracking We our a to In bit runway. my we opening a on comment, and beyond. down report important I share move just the progress XXXX will area

in supplying I of will large space. titanium we into just won't industry our So upsides We the have XXXX. on a dioxide Slide discrete X, lot that a moving that linchpin we are few out chlorine be XXXX. elemental calling product parts note of beyond

generation some expectations And to as shooting ECUs Winchester finally, As chlorine completed President cost In that, system. our our participation today continue program XX-year in have Brett with about XXXX, the of Olin. XXXX, are XX% into base contract us volume expect And we margin Flaugher, next pie or options creative as if have become growing we you we about recreational sales or Winchester representing weapon questions term the in that And take in the out for completely move our of is swag well. uses, well. higher to our it significant. all

footprint Some options as well carbon ESG we substantially reduce our as our targets. evolve scorecard

see back X. X Slide Please and today Going a to bit.

conundrum ECU to of matched improved market and We ECU the sides the pricing versus of the caustic ECU our improve. side quarter. As both of our solution the continues participation first to mastery weaker the on

time sides moved The on model. ECU contribution Olin the direction lifted in this since both ECU same have first of pricing we Not the profit again. that the contrarian surprisingly, articulated index

EBITDA adjusted Moving $XXX X. Winchester million. that hope noticed improved to Slide I second to quarter you

the and of today in future overall are plan in Weapon, Next to Army's using the grow million XXX addition who part use a some brand adults in participation we million XX pie. target reach to are Squad on Winchester the So our shooting of the the embarking to Generation participate don't

third call the few play opening at out on before the up in XX. Q&A, So, key call a to quarter Slide me let elements

now quarter We other we are we ready Winchester third ECU point we another to in is with all, to upward its adjust higher it in quarter. which Epoxy less of model depending third are our And EBITDA expect the participate That March a ECU margin And quarter, comments. add though that good. be equation, to fundamentals on will cost as opportunity position its that the the as to side higher my configuration continues the to rest adjusted weaker But our through deserve started caustic. weaker sequentially move the the at commodities of and demonstrate side. we relish to of model of valuation. now XX%. side the third we our concludes questions. relative First value take proof even The improves off We the is opening operator

you. Thank

will And with ahead. [Operator Wells first begin be Instructions]. now go today Sison question will the the Please Fargo. Mike session. question-and-answer from We

good much you six, PCI quarter. think kind versus industry Nice just just that XXX was XXX ECU to pricing of up? how when about versus the the the in improvement Hey, strategy do morning. curious Scott, of QX you sort think of going

move our up I is our to we as pricing Well, think model. strategy run Olin's

activity. just specific world to we're telegraph understands are that So so the connected I Mike. in and purposeful this is actions things mean, taking trying actions advance, that those I intimately mean, very those a

mentioned the make acquisitions. remarks, particular, in as those in opening for you Olin, the Got at you would Anything down think it. had opportunities And then road? sense you look

do in that be area. move we I looking that we X Mike, Clearly essentially adds it's something were as about layer what work fundamental some potential impact still mean, for another enough to our Phase our acquisitions, the performance all toward matrix. say to ECU. we back box this would to of way structuring, of around or that the And we'll that, a have I acquisition, when improve significant able value to the but

be of acquisitions. criteria that'll So our after sort to go main

you. Thank Great.

Thanks Mike.

Alembic. question the from Please next Hassan with And go Ahmed will come ahead.

morning, Good Scott.

Hi, Hassan.

away of the QX I there, over took impact. question EBITDA the products, sort margins look sort sequential at sequential margins, on If I favorable there QX, Scott Uri Alkali comments a to or flat mean, over Chlor your of scraping the correlate slides you was ECU the margins million. guys sequentially? I up properly. at were relatively this calling And look higher quarter-on-quarter, heard And and is $XX EBITDA a if around out despite, contribution adjusting took

about sort talked You of volumes. lower

the totally. much favorable you and quarter? impacts, taking these flat, pricing sort of from system parse actually, I relatively out really impact guys keep supply that EBITDA was I'm if So hearing the to relate just trends, just volume despite sort the could the chain the sort trying margins volumes of those up question the to about of slightly. out, you was issues, they like is, were logistical understand negative How of So as versus volumes? disruption in

basically Thanks - answer thanks. mean, model, is is I I lot. we would focused our we're over we're look, mean, way that which value the volume. Yes, mean, on running that I question, a

up, course, that of won't went the improve. saw in third that sort see CAPV is, you cost in reason second what PCI you pricing But issues is, So repeat there the the issue of the fixed happen quarter margin in ECU our some we our themselves have did quarter.

So the doesn't kind because we've addressed margins of continue and profit that up, flat, that absolute be item, on. fixed to understood costs of

things, the the and higher to relates seen on gas follow-up propylene side higher a segment, as prices, as raw material obviously, benzene we've of sort natural we've of And seen Epoxy prices. it Understood.

sort higher come second could be of How half as your of So have tailwind given of And your beyond those above you've you are how guidance know, if year, about down, you have you you you source the sort are guys do a guided the rows of guidance, guys and for thinking what the as rows? to? given that prices? managing

Epoxy I Yes, our a some impact things lot. you segment mentioned quite those really mean, of

So I'll answer Pat to ask it.

Yes, Hassan.

through raw cost with business. pretty have impact We on chain. our Epoxy of first I never deal the costs, easily really material think, all, the those had big hydrocarbon a value

in have And So we what our about raw key our costs with make like manage and to materials options things those given I versus happens wouldn't costs epichlorohydrin. pass ability our concerned system. along and to not BPA, buy really really those to even course, be, I'm hydrocarbons, do around within phenol of

guys. helpful. Very Thanks,

Zekauskas will come with JPMorgan. next ahead. go Jeff question from The Please

time? see that in it demand, competitors of Epoxy think, very you capacity you Do much. How will prices your that Thanks long and quite may new supply changes elevated? take will have or a it you global think or do some invite in expand now competitors

Jeff, it Thanks, demand on Jeff. Pat across little into. want Epoxy Pat, a you some bit give improving I color areas multiple do superb maybe just segments of mean, demand. mean I'll But And color? goes I give a will of generally, and that start little is to then specific out.

Yes, Jeff.

there's major in circuit some with to I coatings. laminates and think and and lot of course, gas electric is strong. very, Asia, months more more five markets, between pretty last, around seeing have look nearly of vehicles, we that this of we're if for or automotive much the in but years. the new improving, Epoxy automotive, have very us, I Jeff, know, shipbuilding, boards bonded being and vehicles, say also, important to variety I'd Gas, electrical electronics, Coatings we But resins. been into of Marine water we all appliances XXXX electronics ships what biggest at Oil not, the you then markets in don't put that performance the they and the or and for five And we ships oil pun for sell orders get do markets and the being crossed orders in very the both with gas this a you first if demand were oil coming intertwined container fusion pardon industrial electrical And the year and of dead double in printed container our strength for 'XX. into, and a plays

demand realized, So come this but is will XXXX. is be in for to yet that Epoxy XXXX and

change follow-up, have industry of have in my we and Do outages outages balances. supply in guess has normal so to the don't will tightened and caustic, chlorine there you balance I production. in States think the demand back of many come supply chlorine XXXX? the rates because been United demand up which to in weather gets Okay, If

Scott. Yes, model. guess I we're mean, number is our mean one, running this points, two I Jeff I

business, supply see we But characteristics exact to XXXX, forward thing growth our you of so right. outstrips growth. supply in even if and growth same business. you ECU one. ECU you point growth, take phenomena small-caliber to Epichlorohydrin, exactly well. ammunition same our and demand outstrips And fast the as if demand control And that Demand far supply Epoxy That's Winchester,

thanks so Okay, much.

Sure.

go And the UBS. Roberts is ahead. John from next with question Please

locked price TiOX say fair about you. Dow contracts? into volume What's is these including the in your and the contract Thank to range is it And realized lower that, of half the prices? chlorine your chlorine

lot I'll to just a a Damian we some level, Yes, for Damian, have want I bit. little of color? yes, give mean, high the we with ask you question. opportunity, really have, a thanks broad At to comment a range

significant chlorine, are significant in from a that long-term, that we've of Yes, good the XX% that its chunk view talked indices, within the the value portion Yes, and even have we of past of ECUs, morning. mirror, cost stepped about go the reflection that the true arrangement, moving sure. value achieved but up said own within of off merchant volume this rear destiny, a of system. of aside our them and we've our chlorine into, remainder based of on ways our this in indices this John, in put we the we this to and still moved it's arbitrary another quarter, market off

ways our milestone back another destiny running this done So second we way chart model, own ECUs our and beyond. on to for more into step XXXX go. quarter as us own several put and for But achieved our prepare everything our with we've yet through our of them we've to

how in and understand pricing a And Winchester I want is to we characterize primers then don't primers the that Winchester what's market? Okay, well as observe on you it? big percent going guess that's because don't business, the I with market on or something primer how of in however

ahead, Brett. Go

in the now. the right of Sure. U.S. largest. primers There's two is really Winchester manufacturers

the of start-up primer strong building taken practices, strategies complicated the of we're business. high our a full value and And us we've past the of at getting will of primers, things primer look help the capabilities. get nature manufacturing that exploring our One and into is costs that

you. Thank

Frank be from with Please ahead. the question Fermium. Mitsch next And will go

for Epoxy thinking about mean and as morning I that to quarter an is a good EBITDA of mean, look and talk starting quarter, million the neighborhood results start for that Yes, a in $XXX should the second business? I at guidance Epoxy sort I we're run your in Hey, higher the rate. we about business, the congrats. third

this I'll is what say thanks is not our up a I Scott, Frank. to we're just yet. mean, hey lot, target Yes,

some day to end get right. We there the still work we out do but work so a put have XX%, of do. which succeeded, have that to And be in business, some target we of at the may

get a range. it to So

necessary the think upward about to that about are Okay, what something before, a midterm that perhaps I is continued that thought your thoughts PCI almost past ratchet implies we've talked XXX EBITDA PCI, principle, that current to is ECU getting that kind then, that billion you're if near-term got level then that the and you. $X.X And a target? getting close the the on the for like about in of we

continue it from and that of PCI just Well, if Frank the go we're two reinvestment you about anywhere working work neither what epichlorohydrin. the elemental PCI what businesses most moved that on to of market I think now one has economics. in products that mean, chlorine right toward, derivative I going the say about, is I'll will moving ECU I close that's talked linchpin we're up, have so to been the merchant growth the of that into sell the up, we are say that and to ECU has them

move handcuffs to there. So got room certain to we of have But time of some period have out also today. our that we've some way we work

As making that. some we're on progress Damian said,

Perfect, thanks much, Scott. so

KeyBanc. Please Yefremov Alex from comes go with ahead. question next The

Is Hey, of of the XX then you follow-up, than so that look XX% And this may the is of ECUs the Thanks to year much. possible Paul discuss size you agreements XXXX? Weapon it Squad earlier [indiscernible] at extending your could for opportunity? just Alex.

ask Yes, mean, Brett do, second lot, that our those And I say just Paul. the thanks accretive a part I'll to I is And ends option I'll XX% us. of Look what in for any that of would that. answer XXXX. for ECUs

the making Alex. large. City, define the it right ammunition highly more scale than next in for Lake now City. at to Weapon question, Squad but thanks taken It's Sure, it's hard over generation It's just have program. of the Since been involved we've Lake we how

new out in a active we whole today, support at the us We're infrastructure. XXXX, by extensively, Army to have period believe do that whole will ramp-up in Lake contract the that throughout about that City. and go building for We really

a involved it's program now. and highly we're Army, So big the for right

Please go ahead. Thank you. be will Vertical Research. And the next Kevin of McCarthy question from

on volume. appreciate you're nevertheless, quite side lately, the volume I Good really focused the morning, lot across value volatile industry. been Scott, more has a But versus

what And volume would the might anticipate of in about of third and so, to Vinyls kind Chlor Alkali think and you we benefit the quarter, uplift if second what versus kind quarter I see relative if absorption, could through running force majeure your of declarations the maybe cost of through, kind kind rate you operating fixed some of for superior just are example, changes now? talk business right and that

would in thanks we're value volumes Yes, in than Car of lot, be I lower will is the quarter. that that lane. right getting our X Phase we're Kevin. mean, a our course, add the what I don't quarter of think you're the on fact on volume, second they But I over to are in traction that focused third

that So essentially, but necessarily to our molecules applying through and flow our assets, aren't our run matrix. through our model made business on

be growth there's to that. some additional So, in likely

to to have we what Kevin the grow where to That's build able really without do, matching So we're still we trying having going yet to draw are. is new value, up, to a assets. we're company be schematic for

Okay, Winchester, thank And guess in And much second your for with attributable of the second regard like that. sales that on would side, with then are you you price quarter quarter? how I the to basis? help benefits you that versus to the have in us up there Thanks. Can XXX% anticipate quarter uplift were looks versus third the secondly, price then a additional on been it pricing would volume? sequentially year-over-year

including that at price mean but from of comes across it's It's Lake and a also Winchester complete City, the both, our sum. mix to City it's On being business, that business the utilize up, volume Lake revenue being right. I that able new

see quarter the for Winchester announced product. in chart the another have price back on of that pricing our presentation, at in we third look you'll you increase some If the

the through effective quarter. partially be third that'll So

lot. a thanks Perfect,

change. sale the of It's of and half half about the

Thank you, Todd.

next the Research, is Silverstein And with please go Josh ahead. question from Wolfe

Thanks. Good guys. morning,

over looking I different could about would Just helpful? probably of to for business the at but with the next year Epoxy there, at you units, break anything the margins, business year kind EBITDA be be up guidance imagined talk moving can the expecting you're down units you higher least year, by different that what is

we in But expected breakout get can I likely of your business specific the give by are have add by but in the actions a there, is, I reality as fundamentals we appreciate I answer indirectly that didn't better question well. didn't of question. we set that and, what's business to Yes, mean, each give, saying each value business, a

of heard examples shooters to speak restrictions You've those work recreational right, heard we business team and CAPV. more after the Winchester from me share we're give some more in the our just it, taking not pie, We to by Upstream Linchpin well. product, you've contractual going And more the Epoxy. growing release of as ourselves in

So is based. that have view you might a broad

year then And Got as That's flow there of for next more that. balance debt a you. just this you are sheet guys for next as reduction Is year? for or year, return year. far cash helpful think start How deployment M&A? doing next free about dollars for billion of that about billion capital to cash stepping guys profile, the dollars using potentially can cleanup for up thinking you are you

you options, Todd on little want we're have we that thinking number give a do to a bit No, now? of about,

to activities on activities, free to flexibility sheet stock price. No frees were flow. $X.X billion our about M&A, provide activities those cash current billion we're, by today, accomplish flow if that we're That's XXXX XX% to structuring we about parlaying reduce debt more parlaying yield generating levered And light. the I that we're as in you problem. obviously the cash going forward Clearly, capital of much dollars and based it, reducing mean use around the to going sit up a of today, think including really balance of debt. where

that balance those Is sheet for because there you can all or next any year necessary for just other dollars redeploy activities? really billion

Todd. jump I'll Yes, in,

well. But keeps I return that take we'll that the in activities, targets structuring multiple mean now. lot Look we go ways be for part this our compression mean, there, other some of equity sits best a end get And as value exploring, return our a day, some at at will toward we'll at to if be us. for phenomenon happening finding to so options becomes the not this necessarily of model it There's down. assuming our Scott, right complement an successful intend shareholders. debt exploring of more we're It other stock price, I XX% the is

out it, there. what I Got Thanks, That's yes. was to get guys. trying

RBC. question our from next ahead. go with Viswanathan is And Arun Please

Great, taking my on Congrats question. thanks results. the for

reiterate should there there I describe gas real on been you the what's impact your we guess any recently, simply, question, impact just there? inflation aware So could first There of that or of has just hedging is natural yes, some business? or the be

thanks I a give mean, to hey more? you Todd, Arun, do, a yes, little Yes, lot. want we

sure. heavily Arun, near-term, in the very hedged. Yes, we're

a we're So heavily fairly as about heard out, you've from us quarter before, hedged.

So we have a and cost of high rolling quarter four certainty, basis. degree

you about has cost. back gas, that worth will results to in next hedges our in million our year, start we $XX sustained, as over dollar natural the comment gas see roll-off. changing said natural that the your clearly won't gas deck, is And really caught see in lately, So is of up the unless you

as a then and follow-up. Great just

and you the that potentially little value that guys. is, what of bottleneck bit could way Vinyls there? are a guess how a you about if hearing characterize Chlor mechanism for it? creation maybe, from I the And you Epoxy, be the I'm market is primer in within So could to of the Alkali right Is Winchester a think what the bottleneck, would kind you linchpins

in that liquid of suppliers the In our primer support going upstream as mean also material the epichlorohydrin to but business. fully in and one business, and resin, there's And the leading I mark, we're producer certainly is it, Europe yet, producer is as there's exercised business key to linchpin well. our of for Yes, Americas for that the all Brett in chemicals other, the that Epoxy our business the only of primer certainly haven't a we grows, that. like said use us limited sure. we're

by whole So downstream in that value drive driving across we value portfolio key upstream our of intermediate, can Epoxy.

using same get value than value And sort else, continuing so thing is anything value to chlorine, elemental return business, to company also one key the according there's that to ECU our Epoxy the of as If the in more well. of a elemental boost, just CAPV that that our portfolio, it downstream best to applies this and our across you lists elemental chlorine. chlorine but not broad business list derivative large in

Great, thanks. And if do impact I issue you? could Thanks. that as just Have ask one container had point globally? not now Is you shortages more that's the that pressure you quick something any a an one. for or from see

some from mean inside with been a Epoxy. ships neatest I many be Epoxy been impact coated those of these and impact out Pat's we've has chain, business able impact future to new with. are ships, new in on sure. The supply where the are that deal being things all is built, Yes, there to containers utilized

actually forward it's So a positive impact.

with Eric Please from the go ahead. next be And will question Petrie Citi.

Hey, good morning, Scott.

Hi, Eric.

I comment your supplying are price producers or other and wanted are ask what paying to industry, pros cons higher and for these the just on supply chlorine to that resistant to securing TiOX chlorine? about

cases, just not undervalued whole that at that far that other commercial Olin and that, say selling keep in opportunity it many today for to chlorine, industry including far gets chlorine we have undervalued that all. would any we that from coring I have is relative that arrangements

we're there. not we guess a going that match going a the going decision to, is, way if to to it capability to there's be saying business because of I according supply. just in that, value to in around what we're opportunity supply So to today, means we're supply And a terms we're that XXXX, big up essentially the have in we supplying to continue future have that uplift the

that's what we're doing. So

supply? follow-up, in and think XXXX and books a in lower EBITDA the and resulted order fourth your on quarter seeing million. this third are I year seasonality $XXX you by XXXX, quarter What inventory based then, Helpful as

in there third is better from say, quarter, Well, we say like that we fourth expected few the you $X.X some supply possible to least chains second empty. quarter are to of the it's seasonality. challenges might But be quarter had our than a that full-year, billion at I'll face guidance compute do with in

got the of still final work do to we lot story. to a So there see

Thank you.

Stanley, next Angel Morgan is question The from go ahead. please Castillo with

the expand congrats you to, on guess quarter. little productivity. I bit a the just Thank taking for I wanted the question on more and

$XXX for showed to million. million believe million was slide I Your range XXXX, the $XXX $XX previously

you a to lot of here do continue underway. So and initiatives

So on we net should underutilized XXXX? additional and the remainder one, could and review, expand think for curious the comments then how under going capacity productivity into just of about you the the of year

turn to question Jim. I'll Sure, that

Yes, thanks for the question.

You're absolutely right.

function. program, program, been got successful got based a We every division, have broad different across over we've very with our we've X,XXX active projects, every every geography,

company we've in productivity. got So involved whole the

we the remove range, progress that's bottom the We of as the did may the program. against end positive. So

lot of scrutinizing capacity and there have investment, you costs at away of a that. projects, now. out $XXX projects high target that are capacity, on And And we So high not to can as the right looking see million far lot the related we're a as capacity, productivity underutilized. from the for slide going and

and So point, though value we've progress make the even we'll to some we're require up to forward. our we made for as they that the of decisions this they're assets go delivering, to going investment evaluate continue all

quarter, fourth it that you. embedded fourth sounds last like helpful. way bit into to the more on Arun, the kind guess given little the to Thank is quarter, I next then continued just step just, few guess read a of way that's there And guess anything I up of else question that, right to quarter. I follow-up the consider that at from very overall the in wanted it next And guidance, couple, there's looking conservatism the XXX I the at the guidance, the into a there heading we market, EBITDA guess the because I or months of look this implies as I'm is visibility

or improvement, billion a that color perspective, it at that? higher, bit to looking continue just more steady if be to $X.X how the suggest that just even around seem be helpful higher, it XXXX for So little would conceptualize so XXXX guess to which from you're going could would

is the I into in we no billion conservatism and $X.X dynamics at think for thanks. market I say are guidance than market don't fundamentals our Yes, mean we're fourth a quarter fourth but maybe wouldn't where heading least many know, it's years the I year. past. the different about quarter, when

hard run the the so time mitigate model that, of or a a many about In don't sees external likely they're sort absolutely some to want only adjust if the mistake normal just gully downturn reason that there past, our that heading which the seasonality we mountain into to that we've send way better bit fact, of may than that be to XXXX. as you a up we're and is, get, working years conservatism seasonality, a down we world a of little trough, little case, the on said isn't in as you

thank helpful, Very you.

Holt. question the Matthew And Tudor, Pickering, from ahead. go with next Blair comes Please

have the this U.S. for here Thanks in price Scott, my prices caustic have ton currently they're July, any about taking increases? a improved is soda average, do and does the good QX provide question. color support you for morning. caustic more above Hey, been XX

of sure. of me color little if a improving course, what's the for question. can product, about general, Damian? on ECU in on Damian Thanks we're going the don't give overly focus one see mean, focused I bit let Yes, whole but us there, always on we

did caustic as demand demand we pick Matthew improve the attracts and But America, as is see activity up in caustic of thanks. configuration weaker see we Europe supply particularly while prices North did and reflect quarter, well. soda chlorine. starting fundamentals we general supply supply to second caustic pickup up still in demand have in pick economies starting did to it in that. on some we situation speaking, the that Clearly, than in demand soda relatively seen see generally Sure,

side. weaker run on as model price again through side weaker quarter, was, the fundamentals improvement caustic seen sequentially by soda their are our albeit and of And and ECU. the own So, remains recent still announcements. increase we continue third that even some showing to Caustic

And EBITDA were of applies it mentioned idea X your of right? a Got XX% of give contract would than then ECUs getting Can kind to your be like the on us you're you XX%, XX% your what of EBITDA? off for it. that XX% volumes, general less you're you term XX-year left. Slide at completing

Yes, would just destructive essentially answer that's by saying that value cash I today.

Okay, so lower. maybe even

you. Great. Thank Okay.

The next question is go Please from with Mike Leithead ahead. Barclays.

morning, Thanks. Great. guys. Good

think longer-term carbon your outlook on lowering you to including ECUs the contract options significantly redirecting your I mentioned question, some footprint. in XXXX, First

you I it what So was a that meant you by flesh bit out comment? hoping could more

that is said volume. I what a lot guess that's I of Yes,

If out You just to well. as turns value, producing destructive. down. we're also it's me being goes we're - from in say And the standpoint financial ends not heard volume, accretive a our It XXXX. it cash footprint certainly carbon as that

win-win. a like it's So

makes number than pay I more M&A? That are And think down you complete? slides, year your in shares counts is How think clear second sense. pretty think the highlighted relatedly that made expect finish M&A your year-to-date, that Okay. buybacks So question, X% then we we XX% diluted up But to where once opportunities. about about share should you've undervalued? versus and accelerating should also you've

on second a Yes. I'll maybe part question, make Todd of the that Well, the first will part. comment comment on

million below Our the was look well about issued where flow count, that see the year, flow for for some at posted, all a our acquisition. and outstanding the had shares little this Dow this level exercises of share. share generated we option you were of increased shares and on year absolute we've the XXXX as still in shares, count When share you million are back the over have X cash cash that through $XX can statement,

acquisition smaller be it's value. expected any fact where synergies to course point, of lift than value. do, buying But any more expand we're be just clearly and a response else out of larger of given that. from would to going mean, that The matrix activations on second execute one the be we And lot day part on got able would synergies quite and going we direct There's get synergy able no that a the the I somewhere multiple EBITDA. come the to a Interlinked in that is maybe this to Olin's Matrix,

whatever XX% free what compete levered to significant again be So, is cash able now, we'd our have is that'll return of it XX%, get course or per is right uplift, with, today. to flow share, which

hurdle, that's growth put but So money to acquisitions. a now the right in

guys. Thanks it. Got

Sure.

with next the go And Please question Steve of Byrne America. from Bank is ahead.

that are buckets Thank that merchant atoms you. changed mentioned, how able to changed? But value? buckets up move is is more and how - you're you move so Scott, various of driven significantly one the importantly, you have just more numerous ECU could how you mentioned have the both sides you these than TiOX mixed drive shift much piece. that that you the into, pricing You chlorine on how for on And sales far? in has My to more have improved. you has it has you question

to activity ECU well. most on through not then those much for chains and answer in the parlaying activities the Yes, day. participation, at and much expand are a can the things answer letting delivering about the our only market of contributed both value every how lot the is looking thanks structuring We to the And our This today, And but future, I question. the given our is of activities We're through as that our our model. derivative do a I complete through able which future? day. moving mean, lot the to one side any mean, expect is how is same, weaker contribute only around to sort of the capability be to our it and both. it guide our in

the some And of more that generating profit. question Epoxy reflected in business, moving then portion side PCI upstream? algorithm? the more volumes you're maybe Have mean, or that either how on reflected PCI? the ECU your similar into business. that does your and you that in I a downstream more of shift is business get And your - Is shifted of chlorine

little want do a I you mean to Pat, so give Yes, color?

Yes.

I think, value first the Epoxy of overbuy all, right. we've got a lot of value chain, flexibility in of this within and prioritization

three we a we or last demonstrated have and flexibility. months, So of six Obviously, over a here on months pricing our of year. flexibility the lot got lot as a

discovering. from flexibility And options think upstream And it then that I systematize like whole that. we on of have EPI phenol we laminates, monetize form So, of we've liquid and into that a We that and in things that across resin, Epoxy's optionality wind do that converted lot converting we the place resin. look lot where yes, LER molecule, got Epoxy mix, to a portfolio into EPI, of there we energy. we of even BPA, have of we're

So a then lot last versus that is around And captive. merchant of of part the flexibility. mix flexibility

we think that's across of of whole of pretty dynamic the we So value best way where can the a that creative It's it. kind chain. extract

decisions get PCI? reflected that your in And

Yes.

you. Thank

go Edwards The from is question next Travis Goldman ahead. with Sachs. Please

time. Hey, the Josh's morning wanted for earlier and question thanks capital to around allocation. on good I follow-up

be about If up sort this a when opportunities the to as conditions I'm you're to of may M&A specifically engage year, the in Is favorable? is shareholder further. sheet leverage balance improves and in you ballpark EBITDA one half manage talk range times opportunities or at there to commodity next But curious, better. leverage consider or remuneration. you freeing these not leverage as and Presumably, same year plan of you when a

want to you comment? do Todd,

the doing in year, more in think leverage really where but act. level XXXX us that level heard Yes. maybe absolute down you about a of And - the we're comments to the absolute we're necessarily bit looking the for we're it's we target. Travis, of of the a actions next range earlier, that with not little gets

even related conversations to investment rating happening. curious, I'm terms again And but of Olin, regardless question, IG guess But have benefits or specific specific your business if renegotiating an I you of brought at more then but it. is favorable are issuance occasionally our costs? Got probability fundamentals, to the is potential quantifiable fundamentals, around looking are paths general helpful. separate business that desire That's there the from somewhat rating? separate and an grade up there et benefits actual cetera, in

we we We and grade to investment on that operate I this metrics. continue business pathway repay before is And our as this to debt generally said target we've year. think we're well with

the so fundamentals want - we critical us our Olin forward. business for is within investment as operate And we operating with grade we get metrics view how to that move and to

Got time. Thanks for the it.

is Roger the ahead. with go Spitz from And question Bank next Please of America.

two. have I you. Thank

the just rather can your is, agencies latest than first your with achieve you IG to articulate on The view operating from ratings desire IG metrics?

on want that. you to continue Todd,

to Todd. grade operate wanted is this investment We metrics. Roger, with

investment as think the that balance is become We have goal the metrics. operate we're move to that a publicly never with that us gives to to grade. that we deliver doing was what forward. grade of stated that want the a sheet investment We we And company flexibility with

mean, this paradigm will it's dynamic positive on in to change clearly to drive. other allowing you so But successful? you there Thank Thank you. My I pricing much. you're way? the the for is paradigm LER What in way. an is second is clearly, is turn significant you your and its any caustic, one that chlorine, be changed changing extraordinarily very a industry head in

the say we're industry I mean, just chlorine. In words, its wouldn't outcome. say controlling changing elemental it's leader is its would own dynamic. destiny I own and I Olin No, other that, in

We we every model to have day the are that focused contrarian value. get a on go

elemental a ratchet And of it liberate you you're it to a and We number driver And that's have value of lot going a identified is that, list of actions. chlorine company's the on one a focus treat because value. overall it. we as of much, we've how clear when And this evolution. that linchpin and

you Thank much very it. for your Got time.

Sure.

session. turn I concludes further no Scott closing Sutton this as gentlemen, questions, and question-and-answer our the comments. to would Ladies to are over conference back like there for

Yes.

right is first really focused is Okay. Yes, is I guess the Olin And all a success activities two in one just now. wins who teammates higher we're that closing say great we so our thanks a are up lot. mean, and print demonstrate job. I would to a second doing main the And that is I continuing that what Olin we turn one on demonstrate can deserve in valuation. lifting that

today. us joining lot for a that, thanks with So

presentation. Thank attending you, you for thank And sir. today's

your You may now disconnect lines

you. Thank