Item 5. Other Events.
The press release attached as Exhibit 20 is incorporated
herein by reference.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
OLIN CORPORATION
By: J. A. Riggs
J. A. Riggs
Senior Vice President and
Chief Financial Officer
Dated: January 7, 1994
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
20 Press Release dated December 16, 1993
Investor Contact: Richard E. Koch
(203) 356-3254
Press Contact: William H. Werfelman
(203) 356-2018
FOR IMMEDIATE RELEASE
STAMFORD, Conn., December 16 -- Olin Corporation today announced
the next step in a series of strategic actions to strengthen its
winning businesses and lower costs to add value and increase
competitiveness.
John W. Johnstone, chairman and chief executive officer,
said: "After an extensive strategic review of our businesses we
are taking a series of important actions to position Olin for
improved earnings. These actions are designed to transform Olin
by increasing our competitiveness, growing our winning businesses
and enhancing shareholder value. As we implement our strategy,
we will create a stronger foundation from which to grow."
As part of this ongoing restructuring program, today's
actions consist of personnel reductions and restructuring charges
for consolidations and re-alignments within divisions. In
addition, the company is providing for future costs at sites of
discontinued businesses, and environmental remediation and other
charges. As a result of these decisions the company expects to
record an after-tax charge to earnings of $132 million in the
fourth quarter of 1993. These actions are expected to improve
earnings and cash flow in 1994 and beyond.
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"The Chief Executive Office and the Board of Directors, in
announcing these actions today, continue to implement the Olin
Strategy. Throughout this multi-year process, Olin's core
strengths of manufacturing quality products and building customer
relationships will be enhanced and position Olin for the future.
Today's actions, as well as our realignment of chemicals
operations announced last month, will transform Olin into a
stronger, more vital company. These actions, combined with
continuing portfolio management, should allow the company to
improve its quality of earnings and deliver sustained
profitability for the benefit of all our stakeholders," Mr.
Johnstone said.
"Building on the 1991 streamlining program, which involved
the divestiture of non-strategic and underperforming businesses,
today's actions are designed to increase the competitiveness of
our key businesses and reinforce our strong market leadership
positions. We are taking additional steps to increase profit
margins, minimize selling, general and administrative expenses,
and tightly manage capital spending, thus enhancing cash flow and
creating shareholder value. Based on the current outlook for our
businesses, these actions should improve our earnings over 1993,
allowing us to modestly exceed current security analysts'
earnings estimates for 1994. I expect we will have additional
cost savings in the second year of this program. Further
improvement in earnings can be achieved when pricing restoration
takes place in several key product lines," Mr. Johnstone said.
"The environmental provision recognizes future costs
associated with environmental remediation activities. The
provision doesn't change our previously disclosed environmental
cash expenditure profile. We continue to be conscientious in
meeting our environmental responsibilities through many
initiatives, largely embodied in Responsible Care," Mr. Johnstone
said.
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Major details of the charge are:
Workforce Reductions
The company expects to reduce its salaried workforce by over
10 percent, or 600 employees, over the next two years. In
addition, there will be minor reductions in the hourly workforce.
An early retirement incentive program is planned for the Brass
and Winchester divisions, which did not participate in the
program offered in 1991. The after-tax charge for these actions
is expected to be $26 million.
Business Restructuring
The charge provides for streamlining existing businesses by
relocating and consolidating several facilities, primarily in the
Olin Electronic Materials division. These actions are expected
to improve both profitability and competitiveness. Additionally,
a portion of the charge relates to lower estimated proceeds from
asset disposals and higher costs associated with components of
the 1991 streamlining program. The company expects to record an
after-tax charge of $26 million for these business
restructurings.
Discontinued Businesses and Site Maintenance Costs
The charge for discontinued businesses includes $25 million
to provide for property maintenance and security, as well as
warranty and product liability expenses associated with several
operations which are no longer ongoing businesses. Also, a
previously decommissioned plant and warehouse will be
disassembled, while associated buildings will be modified to make
them suitable for future leasing.
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Environmental Remediation and Other Charges
The after-tax charge of $34 million recognizes future
environmental liabilities resulting from additional investigatory
activities and more extensive remediation at sites. An
additional after-tax charge of $15 million relates to remediation
costs which Olin anticipated sharing with a third party, with
whom Olin is now in litigation. These provisions are not
expected, over the next three years, to significantly alter the
anticipated cash outlays for environmental remediation.
In addition there were various other minor charges,
including asset adjustments and long term disability costs, which
total $6 million after-tax.
Olin Corporation is a Fortune 200 company concentrated
primarily in chemicals, materials and metals, defense, sporting
ammunition and aerospace. Headquartered in Stamford,
Connecticut, Olin has 13,000 employees worldwide.
12 X 93-54
