Back to top

Image: Bigstock

Olin (OLN) Inks Chlorine Pact With Ashta to Optimize Logistics

Read MoreHide Full Article

Olin Corporation (OLN - Free Report) forms a pact with Ashta Chemicals, Inc., a leading manufacturer of potassium hydroxide (KOH) headquartered in Ohio, for the purchase and sale of chlorine produced at the latter’s Ashtabula, OH facility. Existing contracts will continue to be in action for chlorine customers of both companies.

This deal will enable both companies to optimize logistics across their portfolios, thereby bringing down transportation costs by reducing the length and time of the journey. This eases the access to chlorine for customers, while ensuring a secured supply flow within Olin’s network. The company has unequaled expertise in the safe and efficient delivery of chlorine, which is an added benefit.

Ashta noted that it is enthusiastic about the partnership, as this will allow it to harness its strength in the production of KOH for its growing customer base.

Shares of Olin have skyrocketed 311.5% in a year, higher than the industry’s growth of 47.5%. The company’s estimated earnings growth rate for the current year is pegged at 506.7%.

Zacks Investment ResearchImage Source: Zacks Investment Research

The company, in its first-quarter earnings call, said that it expects price hikes for chlorine, epichlorohydrin, epoxy resins, bleach, ethylene dichloride and chlorinated organics to favorably contribute to its Chemicals businesses in the second quarter.

Olin also expects second-quarter adjusted EBITDA to improve sequentially from first-quarter levels, barring the net one-time financial benefits from Winter Storm Uri.

Zacks Rank & Other Key Picks

Currently, Olin carries a Zacks Rank #1 (Strong Buy).

Other top-ranked stocks in the basic materials space are Univar Solutions Inc. (UNVR - Free Report) , Dow Inc. (DOW - Free Report) and Tronox Holdings PLC (TROX - Free Report) , each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Univar has a projected earnings growth rate of 35.2% for the current year. The company’s shares have gained 43.9% in a year.

Dow has a projected earnings growth rate of 326.5% for the current year. The company’s shares have grown 52.7% in a year.

Tronox has a projected earnings growth rate of 242.9% for the current year. The company’s shares have jumped 201.5% in a year.

Zacks' Top Picks to Cash in on Artificial Intelligence

In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.

See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Dow Inc. (DOW) - free report >>

Olin Corporation (OLN) - free report >>

Tronox Holdings PLC (TROX) - free report >>

Univar Solutions Inc. (UNVR) - free report >>