Olin Updates Pension Plan Guidance.
NORWALK, Conn.--(BUSINESS WIRE)--Feb. 4, 2004
Olin Corporation (NYSE NYSE
See: New York Stock Exchange :OLN OLN Outdoor Life Network (TV channel)
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OLN Olin Corporation
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OLN Office for Library and Information Networking ) today updated its previous guidance concerning its pension plan. In a press release issued on January 29, 2004, the Company disclosed that it estimated its non-cash pension expense for the full year 2004 would increase in the $20 million pretax range over 2003 levels and would continue to increase by about $10 million per year over the next few years. Olin also estimated that only minimal contributions to the plan would be required until 2006. These estimates did not assume that the Company would make a voluntary contribution to the pension plan.
The Company now plans to make a voluntary contribution to the pension plan of approximately $125 million with the proceeds from the issuance of common stock. Olin expects the 2004 voluntary contribution will have a beneficial effect on the 2004 pension expense of approximately $10 million pretax ($6 million after tax). Therefore, it is now expected that the non-cash pension pretax expense in 2004 will be approximately $10 million higher than 2003 ($2.5 million per quarter) and that pension expense will continue to increase by about $10 million per year over the next few years. The voluntary contribution will improve the funded status of the pension plan. Based on revised assumptions and estimates taking into account the 2004 voluntary contribution, the Company now believes that only minimal contributions will be required until 2008.
Olin Corporation is a manufacturer concentrated in three business segments: Metals, Chlor Alkali Products and Winchester. Metals products include copper and copper alloy sheet, strip, foil, rod, welded tube, fabricated fab·ri·cate
tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates
1. To make; create.
2. To construct by combining or assembling diverse, typically standardized parts: parts, metal packages; and stainless steel stainless steel: see steel.
Any of a family of alloy steels usually containing 10–30% chromium. The presence of chromium, together with low carbon content, gives remarkable resistance to corrosion and heat. and aluminum strip. Chlor Alkali Products manufactures chlorine and caustic soda caustic soda: see sodium hydroxide.
Sodium hydroxide (NaOH), an inorganic compound. The alkalies called caustic soda and caustic potash (potassium hydroxide) are very important industrial chemicals, with uses in the manufacture of , sodium hydrosulfite sodium hydrosulfite
A yellowish powder, Na2S2O4, used as a bleaching and reducing agent. Also called hydrosulfite, sodium hyposulfite. , hydrochloric acid hydrochloric acid: see hydrogen chloride.
or muriatic acid
Solution in water of hydrogen chloride (HCl), a gaseous inorganic compound. and bleach products. Winchester products include sporting ammunition, canister powder, reloading Reloading
A term lenders commonly use to refer to the habits of borrowers taking out loans to repay the balance on other loans. Often reloading is done to take advantage of lower interest rates offered by other loans, and potential tax benefits. components, small caliber military ammunition and industrial cartridges.
FORWARD-LOOKING STATEMENTS forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements relate to analyses and other information that are based on management's beliefs, certain assumptions made by management, forecasts of future results, and current expectations, estimates and projections about the markets and economy in which we and our various segments operate. The statements contained in this communication that are not statements of historical fact may include forward-looking statements that involve a number of risks and uncertainties.
We have used the words "anticipate," "intend," "may," "expect," "believe," "should," "plan," "will," "estimate," and variations of such words and similar expressions in this communication to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond our control. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements. We undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise. Relative to the dividend, the payment of cash dividends is subject to the discretion of our Board of Directors and will be determined in light of then-current conditions, including our earnings, our operations, our financial conditions, our capital requirements Capital requirements
Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. and other factors deemed relevant by our Board of Directors. In the future, our Board of Directors may change our dividend policy, including the frequency or amount of any dividend, in light of then-existing conditions.
The risks, uncertainties and assumptions involved in our forward-looking statements, many of which are discussed in more detail in our filings with the SEC, including our Annual Report on Form 10-K Form 10-K
A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.
See 10-K. for the year ended December 31, 2002, include, but are not limited to, the following,:
-- sensitivity to economic, business and market conditions in the
United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and overseas, including economic instability or
a downturn in the sectors served by us, such as automotive,
electronics, coinage coinage
Certification of a piece of metal or other material (such as leather or porcelain) by a mark or marks upon it as being of a specific intrinsic or exchange value. Croesus (r. c. , telecommunications, ammunition, housing,
vinyls and pulp and paper;
-- extraordinary events, such as additional terrorist attacks or
war with one or more countries;
-- continued or additional economic and industry downturns that
result in diminished product demand and excess manufacturing
capacity in any of our segments and that, in many cases,
result in lower selling prices and profits;
-- the cyclical nature of our operating results, particularly
declines in average selling prices The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. in the chlor alkali
industry and the supply/demand balance for our products,
including the impact of excess industry capacity or an
imbalance in demand for our chlor alkali products;
-- an increase in our indebtedness or higher-than-expected
interest rates, affecting our ability to generate sufficient
cash flow for debt service;
-- unforeseen effects of competition, including the migration by
United States customers to low-cost foreign locations;
-- costs and other expenditures in excess of those projected for
environmental investigation and remediation or other legal
-- unexpected litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.
When a person begins a civil lawsuit, the person enters into a process called litigation. outcomes or the impact of changes in
laws and regulations;
-- higher-than-expected raw material and utility or
transportation and/or logistics costs;
-- the occurrence of unexpected manufacturing interruptions and
outages, including those occurring as a result of production
-- unexpected additional taxes and related interest as the result
of pending income tax audits; and
-- the effects of any declines in global equity markets on asset
values and any declines in interest rates used to value the
liabilities in our pension plan.
All of our forward-looking statements should be considered in light of these factors. In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of our forward-looking statements.