Olin Corporation (OLN) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $13.40 million, or $ 0.08 a share in the quarter, against a net loss of $37.90 million, or $0.23 a share in the last year period.

Revenue during the quarter grew 16.24 percent to $1,567.10 million from $1,348.20 million in the previous year period. Gross margin for the quarter contracted 175 basis points over the previous year period to 11.07 percent. Operating margin for the quarter period stood at positive 4.44 percent as compared to a negative 0.55 percent for the previous year period.

Operating income for the quarter was $69.60 million, compared with an operating loss of $7.40 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $220.40 million compared with $214.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 185 basis points in the quarter to 14.06 percent from 15.91 percent in the last year period.

John E. Fischer, chairman, president and chief executive officer, said, "Our overall first quarter 2017 results were in line with our expectations. Our first quarter 2017 adjusted EBITDA reflects better than expected results in the Chlor Alkali Products and Vinyls segment, which more than offset weaker than expected results in the Epoxy segment. The favorable results in Chlor Alkali Products and Vinyls were primarily the result of higher than anticipated caustic soda and ethylene dichloride pricing. The shortfall in the Epoxy segment earnings from expectations reflects higher than expected raw material costs associated with benzene and propylene pricing. First quarter 2017 Epoxy volumes improved approximately 11% compared to last year's first quarter levels. As expected, Winchester's first quarter 2017 segment earnings declined year over year due to lower commercial sales volumes partially offset by lower operating costs."

Olin Corp has generated cash of $99.90 million from operating activities during the quarter, up 112.55 percent or $52.90 million, when compared with the last year period.

The company has spent $83 million cash to meet investing activities during the quarter as against cash outgo of $73.80 million in the last year period.

The company has spent $33.20 million cash to carry out financing activities during the quarter as against cash outgo of $50.10 million in the last year period.

Cash and cash equivalents stood at $168.50 million as on Mar. 31, 2017, down 46.61 percent or $147.10 million from $315.60 million on Mar. 31, 2016.

Working capital declines

Olin Corp has witnessed a decline in the working capital over the last year. It stood at $684.30 million as at Mar. 31, 2017, down 17.34 percent or $143.50 million from $827.80 million on Mar. 31, 2016. Current ratio was at 1.69 as on Mar. 31, 2017, down from 1.79 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 26 days for the quarter from 66 days for the last year period. Days sales outstanding went down to 45 days for the quarter compared with 55 days for the same period last year.

Days inventory outstanding has decreased to 21 days for the quarter compared with 53 days for the previous year period. At the same time, days payable outstanding went down to 40 days for the quarter from 42 for the same period last year.