SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15
(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-1070
Olin Corporation
(Exact name of registrant as specified in its charter)
Virginia 13-1872319
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
120 Long Ridge Road, Stamford, CT 06904
(Address of principal executive offices) Zip Code)
(203) 356-2000
(Registrant's telephone number, including area code)
(Former name, former address, and former fiscal year, if
changed since last report)
Indicate by check mark whether the registrant (1) has
filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90
days.
Yes X No
As of October 31, 1994 there were outstanding 21,480,421
shares of the registrant's common stock.
Part I - Financial Information
Item 1. Financial Statements.
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Condensed Balance Sheets
(In millions)
September30, December 31,
1994 1993
ASSETS
Cash $8.0 $3.3
Accounts receivable, net 410.4 344.9
Inventories 331.6 328.8
Other current assets 67.0 62.8
Total current assets 817.0 739.8
Investments and advances 116.5 121.1
Property, plant and equipment
(less accumulated depreciation
of $1,697.2 and $1,623.9) 867.8 885.1
Goodwill 110.1 113.8
Other assets 60.4 70.6
Total assets $1,971.8 $1,930.4
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term borrowings and current
installments of long-term debt $42.9 $121.2
Accounts payable 205.4 231.9
Other current liabilities 297.6 251.1
Total current liabilities 545.9 604.2
Long-term senior debt 308.2 323.9
Long-term subordinated debt 125.0 125.0
Other noncurrent liabilities 263.9 281.7
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 86.9 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 397.6 297.0
Cumulative translation adjustment (4.5) (9.4)
Retained earnings 258.6 238.1
Total shareholders' equity 728.8 595.6
Total liabilities and
shareholders' equity $1,971.8 $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 Nine Months
Ended September 30, Ended September 30,
1994 1993 1994 1993
Sales $666.9 $606.8 $1,979.9 $1,824.2
Operating expenses:
Cost of goods sold 543.6 507.7 1,598.3 1,498.7
Selling and administration 73.9 71.4 232.1 223.9
Research and development 8.7 11.1 26.0 30.7
Operating income 40.7 16.6 123.5 70.9
Interest expense 8.9 9.7 28.4 28.9
Interest and other income 4.2 1.9 7.4 6.9
Income before taxes 36.0 8.8 102.5 48.9
Income taxes 13.9 3.8 37.5 17.9
Net income 22.1 5.0 65.0 31.0
Preferred dividends 1.6 1.8 5.1 5.5
Net income available to
common shareholders $20.5 $3.2 $59.9 $25.5
Per share of common stock:
Primary $0.86 $0.15 $2.64 $1.17
Fully diluted $0.85 - $2.57 -
Dividends $0.55 $0.55 $1.65 $1.65
Average common shares outs. 21.4 19.1 20.3 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)
Nine Months
Ended September 30,
1994 1993
Operating activities
Net income $65.0 $31.0
Depreciation and amortization 105.8 102.0
Changes in:
Receivables (60.4) (15.0)
Inventories 8.1 (0.8)
Other current assets (3.9) (2.0)
Current liabilities other than borrowings (24.1) (76.1)
Noncurrent liabilities 10.6 2.4
Deferred taxes 8.3 11.4
Net operating activities 109.4 52.9
Investing activities
Capital expenditures (76.3) (90.2)
Proceeds from sales of businesses 11.3 12.4
Business acquired in purchase transaction (25.4) -
Other investments (1.2) (7.9)
Other transactions 18.7 4.6
Net investing activities (72.9) (81.1)
Financing activities
Long-term debt repayments (15.5) (18.2)
Short-term (repayments) borrowings (78.5) 81.4
Issuance of common stock 97.7 -
Repayment from ESOP 10.0 10.0
Dividends paid (45.5) (44.5)
Net financing activities (31.8) 28.7
Net increase in cash 4.7 0.5
Cash, beginning of period 3.3 3.6
Cash, end of period $8.0 $4.1
___________________________________
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 September 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
September 30, 1994 balance sheet as long-term debt.
At September 30, 1994 there were approximately 1.1
million shares of ESOP preferred stock outstanding
at a value of $77.50 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. Fully
diluted per share amounts for the 1993 periods were
antidilutive.
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 sales and net income (loss) for the 1994
third quarter and year-to-date period compared with
corresponding prior year periods are set forth in the
following table:
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
(In millions) 1994 1993 1994 1993
Sales:
Chemicals $299.6 $271.4 $923.2 $861.4
Metals 188.7 159.6 554.7 499.5
Defense/Ammunition 178.6 175.8 502.0 463.3
Total $666.9 $606.8 $1,979.9 $1,824.2
Net Income (Loss):
Chemicals $10.5 $(1.9) $33.2 $15.1
Metals 8.3 4.4 26.6 15.9
Defense and Ammunition 8.5 8.4 21.7 17.5
Corporate and Other (5.2) (5.9) (16.5) (17.5)
Total $22.1 $5.0 $65.0 $31.0
Chemicals sales for the 1994 quarter and year-to-date
period increased 10% and 7%, respectively, while net
income increased significantly from 1993's levels due
to higher demand, improved pricing and cost
reductions. Demand for chlorine has been strong all
year with pricing improving in the first quarter and
remaining stable. Commencing with the second quarter,
caustic demand has increased to the point where it is
in short supply. While declining in the first quarter
of 1994, caustic pricing has increased in each of the
following quarters. These factors along with lower
operating costs have contributed to Chlor-Alkali's
improved 1994 financial performance. Profits of
Reductone(R) were higher due primarily to the strong
domestic demand for sodium hydrosulfite from the paper
and textile industries. In swimming pool chemicals,
additional volumes contributed to its improved 1994
financial performance. Although sales of flexible
urethanes were higher in both 1994 periods, operating
results were adversely affected by higher raw material
costs and a temporary production outage in September
1994 at the TDI(toluene diisocyanate) plant. The
sulfuric acid business benefited from the new acid
regeneration plant as higher sales and profits
contributed to improved operating results of
industrial chemicals. Sales and profits from
electronic materials and chemicals were ahead of the
prior year periods due to higher semiconductor
industry demand. As part of its 1993 strategic action
plan, the company sold its conductive materials
business to Acheson Industries. The Clinton
Administration has recommended amendments to the Clean
Water Act which, among other things, would seek
funding of a proposed 2 1/2 year study of the impacts
and benefits of chlorine and chlorinated compounds. In
addition, a bill was introduced in the United States
Congress in 1993 which would propose to eliminate
discharges of chlorine compounds into navigable waters
and require zero discharge limits for certain toxic
substances, including certain chlorinated compounds.
It is impossible to predict what legislation or other
initiatives, if any, may be adopted regarding chlorine
and what effect, if any, such action may have on the
company.
Metals sales for the 1994 quarter and year-to-date
period increased 18% and 11%, respectively, while
segment net income increased significantly from 1993's
levels. For the 1994 year, with an improving economy,
the demand for strip products has been exceptionally
strong, as the industry is expected to operate at near
record levels. Continuing strong demand from the
automotive and the commercial ammunition markets as
well as the housing and electronics industries, has
contributed to Metals' 1994 financial performance. The
1993 expansion of the brass mill enabled the Metals
segment to meet increased demand and along with the
reduced manufacturing costs, were major factors in
this year's improved operating results. The 1993 year-
to-date period included losses from the German joint
venture, which was sold in October 1993.
Although Defense and Ammunition segment sales for the
1994 quarter and year-to-date period increased 2% and
8%, respectively, segment net income increased
slightly for the quarter and 24% for the nine-month
period. In the quarter, heavy consumer buying of
commercial ammunition, sales from the Aerojet
acquisition and increased demand for Ball Powder(R)
propellant more than offset lower medium-caliber
ammunition shipments. Commercial ammunition volume
increases were created by heavy consumer demand
(caused by continued apprehension of restrictive
legislation and taxation) and by new 1994 marketing
programs. The related profits from these additional
volumes were offset in part by the impact of
production delays of medium-caliber ammunition and
lower management fees resulting from a significant
production decline at the Lake City Army Ammunition
plant. The year-to-date sales increase was
attributable primarily to increased levels of
commercial ammunition and Ball Powder propellant
shipments and the Aerojet acquisition, offset in part
by the medium-caliber ammunition delays. The profit
impact from these higher sales volumes along with
additional royalty income and profits from certain
Aerospace programs were the main contributors to the
year-to-date profit increase.
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.
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 accounted primarily for the 1994
increase in selling and administration expenses.
Interest and other income increased in both 1994
periods from the prior year levels. Better operating
results of the nonconsolidated affiliates were the
main contributors to the 1994 quarterly increase.
In 1994, cash flow from operations, proceeds from the
common stock offering and the sales of businesses and
the use of credit facilities financed the company's
seasonal working capital requirements, capital
expenditures, dividends and the Aerojet acquisition.
At September 30, 1994, the company maintained
committed credit facilities with banks of $305 million
of which $249 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. The effect of higher net income
contributed to the improvement. Increased volumes as a
result of a stronger economy accounted for much of the
increase in accounts receivables from 1993 year-end.
Also, cash flow in the first nine months of 1993 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 25%
higher than 1994's amount.
Capital spending in 1994 of $76.3 million was 15%
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 16% from 1993
mainly to support the consolidation of some electronic
materials businesses, up-grade a stand-by
manufacturing facility 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 primarily
to the new ethylene oxide facility which is a
Venezuelan joint venture in which the company has an
investment of $20 million at September 30, 1994.
Through the first nine months of 1994, this venture
continued to experience liquidity difficulties due to
high leverage. 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. In the 1994 third
quarter, the company sold its conductive materials
business including the manufacturing facility in
Ontario, CA to Acheson Industries, which generated
proceeds of $11.3 million. During the first nine
months 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 1993
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 September 30, 1994, the percent of
total debt to total capitalization (excluding the
reduction in equity for the Contributing Employee
Ownership Plan) was 38.4%, down from 47.1% at year-end
1993 and 44.9% at September 30, 1993.
In the 1994 year-to-date period, the company spent
approximately $24 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
$120 million at September 30, 1994 and $131 million at
December 31, 1993, of which $80 million and $91
million were classified as other noncurrent
liabilities, respectively. Included in the reserve at
September 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 1. Legal Proceedings.
(a) The Augat, Inc. and Isotronics v. Aegis
litigation described in Item 3(f) of the Company's
Annual Report on Form 10-K for 1993 and Item 1 of
the Company's Quarterly Report on Form 10-Q for
the Quarter ending March 31, 1994 has been settled
by all parties by a payment of $5 million to a plaintiff.
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).
27. Financial Data Schedule.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during
the quarter ended September 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: November 10, 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).
27 Financial Data Schedule.
Exhibit 11
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Computation of Per Share Earnings (Unaudited)
(In millions)
Nine Months
Ended September 30,
Primary earnings per share
1994 1993
Primary earnings:
Net income $65.0 $31.0
Less ESOP preferred dividend (4.2) (5.5)
Net income $60.8 $25.5
Primary shares:
Weighted average shares outstanding 20.3 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 23.0 21.8
Primary net income per common share $2.64 $1.17
Fully diluted earnings per share
Fully diluted earnings:
Net income $65.0 $31.0
Less additional ESOP contribution (2.3) (2.6)
Net income $62.7 $28.4
Fully diluted shares:
Weighted average number of common
shares outstanding and common
stock equivalents 23.0 21.8
Dilutive effect of ESOP preferred stock 1.4 1.8
Fully diluted shares 24.4 23.6
Fully diluted net income per common share $2.57 $1.20
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Financial Statements contained in Item 1 of Form 10-Q for the period ended
September 30, 1994 and is qualified in its entirety by reference to such
financial statements. Figures are rounded to nearest 100,000 (except EPS).
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1994
<CASH> 8,000
<SECURITIES> 0
<RECEIVABLES> 410,400
<ALLOWANCES> 0
<INVENTORY> 331,600
<CURRENT-ASSETS> 817,000
<PP&E> 2,565,000
<DEPRECIATION> 1,697,200
<TOTAL-ASSETS> 1,971,800
<CURRENT-LIABILITIES> 545,900
<BONDS> 433,200
<COMMON> 21,400
0
89,700
<OTHER-SE> 617,700
<TOTAL-LIABILITY-AND-EQUITY> 1,971,800
<SALES> 1,979,900
<TOTAL-REVENUES> 1,979,900
<CGS> 1,598,300
<TOTAL-COSTS> 1,598,300
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 28,400
<INCOME-PRETAX> 102,500
<INCOME-TAX> 37,500
<INCOME-CONTINUING> 65,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 65,000
<EPS-PRIMARY> 2.64
<EPS-DILUTED> 2.57
</TABLE>
Exhibit 12(a)
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
(In millions)
Nine Months
Ended September 30
1994 1993
Earnings:
Income before taxes $102.5 $48.9
Add (deduct):
Income taxes of 50% owned affiliates 3.0 1.5
Equity in losses of less than 50%
owned affiliates 3.4 2.8
Dividends received from less
than 50% owned affiliates 0.4 0.5
Interest capitalized, net of amortization 0.3 (0.8)
Fixed charges as described below 41.9 42.0
Total $151.5 $94.9
Fixed Charges:
Interest expense $29.3 $30.9
Estimated interest factor in rent expense 12.6 11.1
Total $41.9 $42.0
Ratio of earnings to fixed charges 3.6 2.3
Exhibit 12(b)
OLIN CORPORATION AND CONSOLIDATED SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
and Preferred Stock Dividends (Unaudited)
(In millions)
Nine Months
Ended September 30
1994 1993
Earnings:
Income before taxes $102.5 $48.9
Add (deduct):
Income taxes of 50% owned affiliates 3.0 1.5
Equity in losses of less than 50%
owned affiliates 3.4 2.8
Dividends received from less
than 50% owned affiliates 0.4 0.5
Interest capitalized, net of amortization 0.3 (0.8)
Fixed charges as described below 41.9 42.0
Total $151.5 $94.9
Fixed Charges:
Interest expense $29.3 $30.9
Estimated interest factor in rent expense 12.6 11.1
Preferred stock dividend requirement 20.0 20.5
Total $61.9 $62.5
Ratio of earnings to fixed charges 2.4 1.5
