CLAYTON, Mo. - Olin Corporation (NYSE: NYSE:OLN), as part of the U.S. Epoxy Resin Producers Ad Hoc Coalition, has filed antidumping and countervailing duty petitions against imports of certain epoxy resins from China, India, South Korea, Taiwan, and Thailand. The company alleges that these imports are unfairly traded and subsidized, causing material injury to the domestic industry.
According to the petitions, the imports have been sold at significantly low prices, undercutting U.S. producers and capturing an increasing share of the market. The alleged dumping margins range from 11.43% to 351.97% for the five countries. The coalition claims that the foreign governments have provided substantial subsidies to their producers.
Today, the petitions were submitted to the U.S. Department of Commerce and the U.S. International Trade Commission (USITC). The Commerce Department will calculate the dumping margins and estimated duties, while the USITC will assess if the domestic industry has been materially injured.
Epoxy resins are crucial for various industries, including Aerospace, Automotive, Defense, and Wind Energy. The petitions underscore the importance of domestic production for U.S. manufacturing to meet domestic preference requirements and ensure supply chain resiliency.
Olin Corporation's President of Epoxy, Florian Kohl, expressed concern over the impact of these imports on the U.S. market, saying, "These unfairly traded imports have seriously impacted pricing in the U.S. market, which has resulted in a significant negative effect on our production, sales, and earnings."
Olin Corporation is a vertically integrated global manufacturer of chemical products, including chlorine, caustic soda, vinyls, and epoxies. They also manufacture ammunition through their Winchester division.
This filing comes at a time when domestic producers are seeking to protect their industries from foreign competition they deem unfair. The outcome of these petitions could lead to the imposition of duties to offset the alleged dumping and subsidies.
InvestingPro Insights
As Olin Corporation (NYSE: OLN) takes a stand against what it sees as unfair competition from abroad, the company's financial health and stock market performance offer a broader context for understanding its current position. Here are some insights based on real-time data from InvestingPro and InvestingPro Tips that may shed light on the company's financial landscape:
InvestingPro data shows that Olin Corporation has a market capitalization of $7.11 billion, with a Price/Earnings (P/E) ratio of 16.2, which adjusts to a more attractive 13.98 when looking at the last twelve months as of Q4 2023. This suggests a reasonable valuation of the company's earnings. The company's revenue for the same period stands at $6.833 billion, although it has seen a decline of 27.12% year-over-year, indicating some challenges in sales growth.
Despite the revenue decline, Olin Corporation has demonstrated a strong gross profit margin of 16.96% over the last twelve months as of Q4 2023, highlighting its ability to maintain profitability in its operations. The company's commitment to shareholder returns is evident, with a notable InvestingPro Tip pointing out that Olin has maintained dividend payments for 51 consecutive years, reflecting a stable and investor-friendly policy.
Moreover, management's aggressive share buyback strategy and the high shareholder yield are InvestingPro Tips that suggest a proactive approach to enhancing shareholder value. The stock has also been trading near its 52-week high, with a price that is 98.97% of this peak, which could be indicative of market confidence in the company's prospects.
For investors seeking more in-depth analysis and additional insights, there are 9 more InvestingPro Tips available for Olin Corporation, which can be found at https://www.investing.com/pro/OLN. These tips could help investors make more informed decisions, especially in light of the company's recent strategic moves. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to valuable investment tools and data.
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