Part I - Financial Information
Item 1. Financial Statements.
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Condensed Balance Sheets
(In millions)
June 30, December 31,
1994 1993
ASSETS
Cash $6.0 $3.3
Accounts receivable, net 445.8 344.9
Inventories 345.5 328.8
Other current assets 61.2 62.8
Total current assets 858.5 739.8
Investments and advances 115.7 121.1
Property, plant and equipment
(less accumulated depreciation
of $1,670.4 and $1,623.9) 873.6 885.1
Goodwill 111.4 113.8
Other assets 58.7 70.6
Total assets $2,017.9 $1,930.4
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term borrowings and current
installments of long-term debt $120.6 $121.2
Accounts payable 178.9 231.9
Other current liabilities 298.3 251.1
Total current liabilities 597.8 604.2
Long-term senior debt 308.2 323.9
Long-term subordinated debt 125.0 125.0
Other noncurrent liabilities 266.8 281.7
Shareholders' equity:
Preferred stock, par value $1 per share:
Authorized 10.0 shares.
Series A Conversion Preferred Stock
Issued 2.76 shares 2.8 2.8
ESOP Preferred Stock
Issued 1.2 shares 88.6 92.0
Guaranteed ESOP obligations (34.0) (44.0)
Common stock, par value $1 per share:
Authorized 60.0 shares.
Issued 21.4 shares (19.1 in 1993) 21.4 19.1
Additional paid-in capital 395.4 297.0
Cumulative translation adjustment (6.3) (9.4)
Retained earnings 252.2 238.1
Total shareholders' equity 720.1 595.6
Total liabilities and
shareholders' equity $2,017.9 $1,930.4
___________________________________
The accompanying Notes to Condensed Financial Statements are an
integral part of the condensed financial statements.
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Condensed Statements of Income
(In millions, except per share amounts)
Three Months Six Months
Ended June 30, Ended June 30,
1994 1993 1994 1993
Sales $708.1 $625.5 $1,313.0 $1,217.4
Operating expenses:
Cost of goods sold 567.2 506.9 1,054.7 991.0
Selling and administration 81.4 79.3 158.2 152.5
Research and development 8.8 10.3 17.3 19.6
Operating income 50.7 29.0 82.8 54.3
Interest expense 10.1 9.6 19.5 19.2
Interest and other income 2.0 2.8 3.2 5.0
Income before taxes 42.6 22.2 66.5 40.1
Income taxes 15.0 7.9 23.6 14.1
Net income 27.6 14.3 42.9 26.0
Preferred dividends 1.8 1.8 3.5 3.7
Net income available to
common shareholders $25.8 $12.5 $39.4 $22.3
Per share of common stock:
Primary $1.16 $0.57 $1.78 $1.02
Fully diluted $1.10 $0.57 $1.72 $1.02
Dividends $0.55 $0.55 $1.10 $1.10
Average common shares outs. 20.3 19.1 19.8 19.1
___________________________________
The accompanying Notes to Condensed Financial Statements are an
integral part of the condensed financial statements.
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Condensed Statements of Cash Flows
(In millions)
Six Months
Ended June 30,
1994 1993
Operating activities
Net income $42.9 $26.0
Depreciation and amortization 69.4 67.1
Changes in:
Receivables (93.5) (50.8)
Inventories (4.7) (1.5)
Other current assets 1.8 (1.6)
Current liabilities other than borrowings (31.1) (77.8)
Noncurrent liabilities 9.0 (0.6)
Deferred taxes 5.6 9.4
Net operating activities (0.6) (29.8)
Investing activities
Capital expenditures (44.2) (64.7)
Proceeds from sales of businesses - 12.4
Business acquired in purchase transaction (25.4) -
Other investments (0.8) (6.8)
Other transactions 11.5 (0.3)
Net investing activities (58.9) (59.4)
Financing activities
Long-term debt repayments (15.5) (17.2)
Short-term (repayments) borrowings (0.8) 127.6
Issuance of common stock 98.0 -
Repayment from ESOP 10.0 10.0
Dividends paid (29.5) (29.7)
Net financing activities 62.2 90.7
Net increase in cash 2.7 1.5
Cash, beginning of period 3.3 3.6
Cash, end of period $6.0 $5.1
___________________________________
The accompanying Notes to Condensed Financial Statements are an
integral part of the condensed financial statements.
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONDENSED FINANCIAL STATEMENTS
1. The condensed financial statements included herein have
been prepared by the company, without audit, pursuant to
the rules and regulations of the Securities and Exchange
Commission and, in the opinion of the company, reflect all
adjustments (consisting only of normal accruals) which are
necessary to present fairly the results for interim
periods. Certain information and footnote disclosures
normally included in financial statements prepared in
accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and
regulations; however, the company believes that the
disclosures are adequate to make the information presented
not misleading. It is suggested that these condensed
financial statements be read in conjunction with the
financial statements, accounting policies and the notes
thereto and management's discussion and analysis of
financial condition and results of operations included in
the company's Annual Report on Form 10-K for the year ended
December 31, 1993.
2. Inventories are valued principally by the dollar value last-
in, first-out (LIFO) method of inventory accounting. It is
not practicable, therefore, to separate the inventory into
its components (raw materials, work-in-process and finished
products). Inventories under the LIFO method are based on
annual determination of quantities and costs as of the year-
end; therefore, the consolidated financial statements at
June 30, 1994, reflect certain estimates relating to
inventory quantities and costs at December 31, 1994.
3. An Employee Stock Ownership Plan (ESOP) was established in
June 1989. The ESOP purchased from the company
approximately 1.3 million shares ($100 million) of a newly-
authorized 1.75 million share series of the company's ESOP
preferred stock, financed by $60 million of notes
guaranteed by the company, and $40 million of borrowings
from the company. The company's loan to the ESOP has been
repaid in full as of December 31, 1992. Such loan was
financed by the company through a long-term credit facility
which is classified on the June 30, 1994 balance sheet as
long-term debt.
At June 30, 1994 there were approximately 1.2 million
shares of ESOP preferred stock outstanding at a value of
$76.00 per share. The quarterly fixed dividend rate is
$1.4925 per share. The ESOP preferred stock is
convertible by the holder into the company's common stock
on a one-for-one basis, subject to anti-dilutive
adjustments and may be redeemed at the option of the
company after July 1, 1994, or at the option of the Plan
under certain circumstances (including upon payment of
withdrawing ESOP participant accounts or if required to
meet ESOP debt payments). The ESOP preferred stock is
included in shareholders' equity because the company
intends to redeem the ESOP preferred stock solely with
shares of the company's common stock, and has the ability
to do so.
4. Primary earnings per share are computed by dividing net
income less the ESOP preferred dividend requirement by the
weighted average number of common shares outstanding, plus
an equivalent number (one-for-one) of common shares,
assuming the conversion of the Series A Stock. Fully
diluted earnings per share reflect the dilutive effect of
stock options and assume the conversion of outstanding ESOP
preferred stock into an equivalent number of common shares.
Net income was reduced by an additional ESOP contribution
(differential between the common and the ESOP preferred
dividend rates under an assumed conversion) necessary to
satisfy the debt service requirement.
5. In April 1994, the company acquired for approximately $25
million the medium caliber ammunition business(Aerojet)of
GenCorp's Aerojet Ordnance Division, with relevant annual
sales approximating $100 million. The acquisition expands
Olin's medium caliber ammunition family and positions the
company with a complete line of improved 20MM, 25MM, and
30MM ammunition as well as air-dispensed munition products.
6. In May 1994, the company issued 2,213,750 shares of common
stock at a price of $46.00. Proceeds from the offering
were used to reduce short-term, floating rate debt incurred
for the Aerojet acquisition and working capital
requirements.
7. In September 1993, the company entered into an unsecured
revolving credit agreement with a group of banks, which
replaced a prior $200 million credit agreement. That
agreement provided a maximum borrowing of $250 million and
unless extended, expires on October 15, 1997. The company
may select various borrowing options at varying rates.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
Segment operating data for the 1994 second quarter and year-to-
date period compared with corresponding prior year periods are
set forth in the following table:
Three Months Six Months
Ended June 30, Ended June 30,
(In millions) 1994 1993 1994 1993
Sales:
Chemicals $338.4 $309.9 $623.6 $590.0
Metals 186.5 163.5 366.0 339.9
Defense and Ammunition 183.2 152.1 323.4 287.5
Total $708.1 $625.5 $1,313.0 $1,217.4
Net Income:
Chemicals $14.9 $9.8 $22.7 $17.0
Metals 9.4 5.5 18.3 11.5
Defense and Ammunition 9.0 4.8 13.2 9.1
Corporate and Other (5.7) (5.8) (11.3) (11.6)
Total $27.6 $14.3 $42.9 $26.0
Chemicals sales for the 1994 quarter and year-to-date period
increased 9% and 6%, respectively, while net income increased
significantly from 1993's levels. Strong demand for caustic and
chlorine and higher chlorine pricing contributed to Chlor-
Alkali's improved 1994 financial performance. For the total
year, Chlor-Alkali's results are expected to be significantly
ahead of 1993's performance. An improving economy has diminished
the over-supply position of caustic and brought about increased
demand and pricing. These factors along with profit improvement
programs are expected to be the main contributors to Chlor-
Alkali's improved operating results. Higher volumes due to
increased demand in the paper and textile markets contributed to
Reductone(R) sodium hydrosulfite's 1994 sales and profit
improvements. Increased market share and excellent manufacturing
operating rates contributed to increased sales and profits from
swimming pool chemicals. In flexible urethanes lower domestic
prices and higher raw material costs more than offset the effect
of improved international prices, resulting in lower operating
results. Sales and profits from electronic materials and
chemicals were ahead of the prior year periods due to higher
sales volumes for most of its products and services. In 1994's
first half, the company signed a letter of intent to sell its
conductive materials business.
Although Metals segment sales increased moderately over 1993's
comparable periods, segment net income was significantly ahead
of the same periods last year. Additional volumes to the
automotive, housing and electronics industries and increased
demand for cupping for the commercial ammunition market
contributed to the strong profit performance. Lower metal values
in this year's first quarter partially offset the year-to-date
sales increase from these additional volumes. The 1993 periods
included losses from the German joint venture, which was sold in
October 1993. For the total 1994 year, excess capacity has
lowered industry operating rates and has created a very
competitive pricing environment. Continued strong customer
demand is expected to contribute to 1994's increased improvement
in segment sales and net income.
Defense and Ammunition 1994 segment sales increased 20% for the
quarter and 12% for the six-month period while net income in
both periods increased substantially. The sales from the Aerojet
acquisition and higher commercial ammunition sales were the
contributing factors to the 1994 sales improvements. Commercial
ammunition volume increases were created by heavy consumer
demand (caused by an apprehension of restrictive legislation and
taxation) and by new dealer-distributor marketing programs. The
profits from the additional sales were offset in part by lower
management fees resulting from the production decline at the
Lake City Army Ammunition plant. In 1994's second quarter, the
profit contribution from higher Ball Powder(R) propellant sales
more than offset the lower tank ammunition volumes. Sales and
profits from key rocket engine programs, a new electronic
commercial aircraft product and royalty income were the main
contributors to the 1994 increase in Aerospace's financial
performance. In the revised outlook for total 1994, Defense and
Ammunition sales and profits are expected to increase from 1993
levels. In Winchester, domestic commercial and military
ammunition sales are anticipated to exceed 1993's level and more
than offset an expected delay in military export ammunition
shipments. New commercial awards are expected to increase
Aerospace's sales. The profit contribution from the Aerojet
acquisition and the income associated with the Winchester sales
improvement are expected to increase segment net income, which
was previously anticipated to be slightly lower than in 1993.
Continuing reductions in the levels of defense procurement
continue to adversely affect the Defense and Ammunition
segment's performance and may continue to do so in future
periods. Consequently, these reductions may also adversely
affect, to a lesser extent, the company's financial performance
in future years, including its income, liquidity, capital
resources and financial condition. In addition, changes in the
strategic direction of defense spending and the timing of
defense procurement may also adversely affect this segment and
the company. The precise impact of defense spending cutbacks
will depend on the level of cutbacks, the extent to which these
cutbacks are in the conventional ammunition area and the
company's ability to mitigate the impact of the cutbacks with
new business or by business consolidations. The company
currently provides services to the U.S. Government in facilities
management and is pursuing other business areas such as ordnance
demilitarization. In view of continuing spending cutbacks of the
Department of Defense, the historical financial information of
the Defense and Ammunition segment, and to a lesser extent, of
the company, may not be indicative of future performance.
Although selling and administration expenses as a percent of
sales in 1994 decreased from the comparable 1993 periods, higher
levels of expenditures existed in 1994. This increase was
attributable primarily to additional brand promotional expenses
for pool chemicals, increased market development expenses for
certain specialty chemicals product-line expansions and the
inclusion of the Aerojet acquisition in 1994's operating
results. Interest and other income decreased in both 1994
periods from the prior year levels due primarily to the
unfavorable performance of nonconsolidated affiliates,
particularly in Latin America.
In 1994, cash flow from operations, proceeds from the common
stock offering and the use of credit facilities financed the
company's seasonal working capital requirements, capital
expenditures, dividends and the acquisition of the medium
caliber ammunition business. At June 30, 1994, the company
maintained committed credit facilities with banks of $368
million of which $213 million was available. The company
believes that these credit facilities are adequate to satisfy
its liquidity needs for the near future. In 1994, cash flow from
operations improved significantly from 1993's level. In the
first six months of 1993 cash flow was used to significantly
reduce December 31, 1992 accounts payable balances and to
support increased environmental spending. The unusually high
level of capital spending in the 1992 fourth quarter and the
timing of payment of invoices relating to various purchase
commitments resulted in the increased level of accounts payable
at year-end 1992 as compared to year-end 1993. In addition, 1993
expenditures for environmental remediation were approximately
35% higher than 1994's amount.
Capital spending of $44.2 million in 1994 was 32% lower than
1993 due to higher levels of spending in 1993 for additional
brass strip capacity and a sulfuric acid regeneration plant.
Total year capital spending, including environmental capital
spending of $10 million, is estimated to increase 10% from 1993
mainly to support the consolidation of some electronic materials
businesses and provide additional capacity for selected product
lines, including a multi-year investment of $75 million for
integration and expansion of toluene diisocyanate (TDI) capacity
at Lake Charles, LA. Historically, the company has funded its
environmental capital spending through cash flow from operations
and expects to do so in the future. Investment spending in 1993
was attributed, in part, to the new ethylene oxide facility
which is a Venezuelan joint venture in which the company has an
investment of $20 million at June 30, 1994. Through the first
half of 1994, this venture continued to experience liquidity
difficulties due to high leverage. During the 1994 second
quarter, one of the company's partners in this joint venture
delayed payment of an advance to this venture, causing it to
default on a third-party loan payment. Since then, this loan
payment has been made. Additionally, in Venezuela general
economic conditions have become unstable in light of new
governmental actions. The government recently imposed currency
exchange controls in order to control capital flight and manage
inflation. The company and its joint venture partners are
working to address these financial and economic issues.
On April 30, 1994, the company purchased certain assets of the
medium caliber ordnance business of Aerojet for approximately
$25 million. This acquisition provides the company with a
complete line of improved medium caliber ammunition products as
well as air-dispensed munition products. During the first half
of 1993 the company sold the facility and assets of its contract
integrated circuit assembly operation and its brake fluid and
certain formulated functional fluid product lines. These
divestitures generated proceeds of $12.4 million.
In May 1994, the company issued 2,213,750 shares of common stock
at a price of $46.00. The proceeds were used to reduce
outstanding short-term floating rate debt($25 million of which
was incurred for the acquisition of the medium caliber
ammunition business with the remainder incurred for working
capital requirements). At June 30, 1994, the percent of total
debt to total capitalization (excluding the reduction in equity
for the Contributing Employee Ownership Plan) was 42.3%, down
from 47.1% at year-end 1993 and 46.3% at June 30, 1993.
In the 1994 year-to-date period, the company spent approximately
$15 million for investigatory and clean-up activities associated
with former waste sites and past operations. Spending for
environmental investigatory and remedial efforts for the full
year 1994 is estimated to be $40 million, compared to $44
million in 1993. The amounts spent were not charged to income
but instead were charged to reserves established for such costs
identified and expensed to income in prior years. Associated
costs of investigatory and remedial activities are provided for
in accordance with generally accepted accounting principles
governing probability and the ability to reasonably estimate
future costs. Charges to income for investigatory and remedial
efforts were material to operating results in 1991, 1992 and
1993 and are expected to be material to net income in 1994 and
future years.
Annual environmental-related cash outlays for capital projects,
site investigation and remediation, and normal plant operations
are expected to range from $90-$105 million over the next
several years. While the company does not anticipate a material
increase in the projected annual level of its environmental-
related costs, there is always the possibility that such
increases may occur in the future in view of the uncertainties
associated with environmental exposures. Environmental exposures
are difficult to assess for numerous reasons, including the
identification of new sites, developments at sites resulting
from investigatory studies, advances in technology, changes in
environmental laws and regulations and their application, the
scarcity of reliable data pertaining to identified sites, the
difficulty in assessing the involvement and the financial
capability of other potentially responsible parties and the
company's ability to obtain contributions from other parties and
the time periods (sometimes lengthy) over which site remediation
occurs. It is possible that some of these matters (the outcome
of which is subject to various uncertainties) may be decided
unfavorably against the company.
The company's consolidated balance sheets include reserves for
future environmental expenditures to investigate and remediate
known sites amounting to $124 million at June 30, 1994 and $131
million at December 31, 1993, of which $84 million and $91
million were classified as other noncurrent liabilities,
respectively. Included in the reserve at June 30, 1994 and
December 31, 1993, were liabilities anticipated to be shared
with a third party, with whom the company is currently in
litigation. Those reserves did not take into account any
discounting of future expenditures or any consideration of
insurance recoveries or advances in technology. Environmental
liabilities are reassessed periodically to determine if
environmental circumstances have changed and/or remediation
efforts and their costs can be better estimated. As a result of
these reassessments, future charges to income may be made for
additional liabilities.
There are a variety of legal proceedings pending or threatened
against the company. It is possible that some of these matters
(the outcome of which is subject to various uncertainties) may
be decided unfavorably against the company. Certain of these
matters are discussed in Item 3, Legal Proceedings of the 1993
Form 10-K Annual Report and in other filings of the company with
the Securities and Exchange Commission, which filings are
available upon request from the company.
Part II - Other Information
Item 3. Legal Proceedings.
As reported in Item 3(d) of Olin's 1993 Form 10-K,
in late 1991, the Environmental Protection Agency ("EPA")
brought a civil action in the U.S. District Court in
Tennessee against Olin alleging violations of the Clean Air
Act and regulations thereunder with respect to mercury
emissions at Olin's Charleston, Tennessee plant. The
complaint alleged, among other things, that Olin failed to
maintain a mercury cell in a manner to minimize leakage of
mercury and mercury contaminated material for a period of
approximately 17 months. EPA claimed civil penalties of
$25,000 per day for each alleged violation. Olin and EPA
reached a settlement in principle in this matter pursuant
to which Olin will pay $1 million in penalties.
Subsequently, Olin and the EPA entered into a Consent
Decree to settle this matter and Olin paid $1 million in
penalties.
Item 4. Submission of Matters to a Vote of Security
Holders.
The Company held its Annual Meeting of
Shareholders on April 29, 1994. Of the 20,289,521 shares
of Common Stock and ESOP Preferred Stock entitled to vote
at such meeting, 17,624,315 shares were present for
purposes of a quorum. At the meeting, shareholders elected
Robert R. Frederick, William W. Higgins, and John P.
Schaefer to the Board of Directors as Class III Directors
with terms expiring in 1997, and H. William Lichtenberger
as a Class II Director with a term expiring in 1996. Votes
cast for and votes withheld in the election of Directors
were as follows:
Votes For Votes Withheld
Robert R. Frederick 16,870,116 754,199
William W. Higgins 16,857,260 767,055
John P. Schaefer 16,872,867 751,448
H. William Lichtenberger 16,863,941 760,374
There were no abstentions or broker non-votes.
The shareholders also voted on and approved the
Olin Corporation 1994 Stock Plan for Non-employee
Directors, which is a plan designed to pay non-employee
directors most of their compensation in the form of Olin
Common Stock. Voting for this resolution approving such
plan were 14,816,274 shares, 2,369,216 shares were voted
against and 438,825 shares abstained from voting. There
were no broker non-votes.
The shareholders also voted on and approved an
amendment to Article III of the By-laws of the Corporation.
The amendment related to indemnification of officers,
Directors and employees. Voting for this resolution
approving the amendment were 15,592,917 shares, 1,531,207
shares were voted against and 500,191 shares abstained from
voting. There were no broker non-votes.
The shareholders also voted on and approved the
Olin Senior Management Incentive Compensation Plan, a plan
which seeks to avoid certain tax limitations on the
deductibility of compensation. Voting for the resolution
approving this plan were 14,571,215 shares, 2,637,157
shares were voted against and 415,943 shares abstained from
voting. There were no broker non-votes.
The shareholders also voted on and approved
amendments to the Olin 1991 Long Term Incentive Plan.
These amendments seek to avoid certain tax limitations on
the deductibility of compensation. Voting for the
resolution approving these amendments were 15,091,357
shares, 2,104,955 shares were voted against and 428,003
shares abstained from voting. There were no broker
non-votes.
The shareholders also ratified the appointment of
KPMG Peat Marwick as independent auditors for 1994. Voting
for the resolution ratifying the appointment were
17,167,499 shares, 290,729 shares were voted against and
166,087 shares abstained from voting. There were no broker
non-votes.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
11. Computation of Per Share Earnings (Unaudited).
12(a). Computation of Ratio of Earnings to Fixed
Charges (Unaudited).
12(b). Computation of Ratio of Earnings to
Combined Fixed Charges and Preferred Stock
Dividends (Unaudited).
(b) Reports on Form 8-K
Except for Current Report on Form 8-K,
dated May 4, 1994, with respect to item 5
thereof, which was filed on May 4, 1994,
no reports on Form 8-K were filed during
the quarter ended June 30, 1994.
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 thereunto duly
authorized.
OLIN CORPORATION
(Registrant)
By: J. A. Riggs
J. A. Riggs
Senior Vice President
and Chief Financial Officer
(Duly authorized signatory and
Chief Financial Officer)
Date: August 9, 1994
EXHIBIT INDEX
Exhibit
No. Description
11 Computation of Per Share Earnings (Unaudited).
12(a) Computation of Ratio of Earnings to Fixed
Charges (Unaudited).
12(b) Computation of Ratio of Earnings
to Combined Fixed Charges and Preferred Stock
Dividends (Unaudited).
Exhibit 11
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Computation of Per Share Earnings (Unaudited)
(In millions)
Six Months
Ended June 30,
Primary earnings per share
1994 1993
Primary earnings:
Net income $42.9 $26.0
Less ESOP preferred dividend (3.5) (3.7)
Net income $39.4 $22.3
Primary shares:
Weighted average shares outstanding 19.8 19.1
Weighted average common share equivalents
assuming the conversion of Series A Conversion
Preferred Stock at the date of issuance 2.7 2.7
Primary shares 22.5 21.8
Primary net income per common share $1.78 $1.02
Fully diluted earnings per share
Fully diluted earnings:
Net income $42.9 $26.0
Less additional ESOP contribution (1.5) (1.8)
Net income $41.4 $24.2
Fully diluted shares:
Weighted average number of common
shares outstanding and common
stock equivalents (primary) 22.5 21.8
Dilutive effect of ESOP preferred stock 1.5 1.7
Fully diluted shares 24.0 23.5
Fully diluted net income per common share $1.72 $1.03
Exhibit 12(a)
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges (Unaudited)
(In millions)
Six Months Ended June 30,
1994 1993
Earnings:
Income before taxes $66.5 $40.1
Add (deduct):
Income taxes of 50% owned affiliates 2.0 1.0
Equity in (earnings) losses of less
than 50% owned affiliates 3.7 2.4
Dividends received from less
than 50% owned affiliates 0.1 0.3
Interest capitalized, net of amortization (0.1) (0.9)
Fixed charges as described below 28.7 27.7
Total $100.9 $70.6
Fixed Charges:
Interest expense $20.2 $20.8
Estimated interest factor in rent expense 8.5 6.9
Total $28.7 $27.7
Ratio of earnings to fixed charges 3.5 2.6
Exhibit 12(b)
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
and Preferred Stock Dividends (Unaudited)
(In millions)
Six Months Ended June 30,
1994 1993
Earnings:
Income before taxes $66.5 $40.1
Add (deduct):
Income taxes of 50% owned affiliates 2.0 1.0
Equity in (earnings) losses of less
than 50% owned affiliates 3.7 2.4
Dividends received from less
than 50% owned affiliates 0.1 0.3
Interest capitalized, net of amortization (0.1) (0.9)
Fixed charges as described below 28.7 27.7
Total $100.9 $70.6
Fixed Charges:
Interest expense $20.2 $20.8
Estimated interest factor in rent expense 8.5 6.9
Preferred stock dividend requirement 13.2 13.3
Total $41.9 $41.0
Ratio of earnings to fixed charges 2.4 1.7
