CLAYTON, MO, Oct. 7, 2020 (Press Release) -Olin Corporation (NYSE: OLN) announced that its financial results for the third quarter ended September 30, 2020 are expected to include a non-cash pretax impairment charge related to goodwill of approximately $700 million.
The goodwill impairment charge is primarily the result of the sustained lower Olin stock price during 2020. The decline in the Company's market capitalization caused an adjustment in the fair value of its reporting units. The approximately $700 million non-cash pretax goodwill impairment charge includes approximately $555 million related to the Chlor Alkali Products and Vinyls segment and approximately $145 million related to the Epoxy segment. These charges reflect the Company's best estimate; however, the impairment amounts continue to be evaluated and could change.
None of the impairment charges will result in any current or future cash expenditure. Additionally, the charges do not have an impact on Olin's compliance with the covenants and restrictions under all outstanding credit agreements.
CONFERENCE CALL INFORMATION
Olin's third quarter 2020 earnings release, including financial statements and segment information, will be distributed after the market closes on Wednesday, November 4, 2020, and will be posted to the Company's website at that time. Olin senior management will host a conference call to discuss third quarter 2020 financial results at 10:00 a.m. Eastern time on Thursday, November 5, 2020. Remarks will be followed by a question and answer session. Associated slides will be available one hour prior to the call.
Interested participants may access the conference call by dialing (877) 883-0383 (Canadian callers, please dial (877) 885-0477; International callers, please dial (412) 902-6506), using the pass code 2298241. The call will also be webcast live on the Company's website at www.olin.com, accessible under the third quarter conference call icon. Participants should log on to the website 15 minutes prior to the start of the call.
Following the event, the webcast will remain available in the Investor Relations section of Olin's website for one year. A telephonic replay of this conference call will be available beginning at 12:00 p.m. Eastern time for 14 days by dialing (877) 344-7529 (Canadian callers, please dial (855) 669-9658; International callers, please dial (412) 317-0088), using the pass code of 10148204. A final transcript of the call will be posted the day following the event.
Olin Corporation is a leading vertically-integrated global manufacturer and distributor of chemical products and a leading U.S. manufacturer of ammunition. The chemical products produced include chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach and hydrochloric acid. Winchester's principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.