Olin (NYSE:OLN) -7.1% in Wednesday's trading after saying it is temporarily curtailing a significant part of ethylene dichloride and related chlor-alkali production at its Freeport, Texas, plant, and epoxy and related upstream inputs production at its Freeport and Guaruja, Brazil, facilities, citing weaker than expected epoxy resin demand in North America and South America.
Olin (OLN) also said it has restarted half of its chlor-alkali unit at its Plaquemine, Louisiana, complex, with the rest of the plant expected to return to operations in early August.
The Freeport facility continues to operate at a reduced level of power generation, and the company expects part of the power generation will be restored in Q4.
RBC Capital cuts its stock price target to $76 from $83 on expectations that full-year EBITDA will come in lower than previously expected, while maintaining its Outperform rating despite slowing epoxy resin demand.
RBC now expects Olin's (OLN) FY 2022 EBITDA of $2.63B-$2.76B, which is at the lower end of company guidance of $2.6B-$2.9B.