Analysis on Olin Corporation

Olin differentiates itself from competitors by focusing the merchandiser market. Sales and ingathering This is a rotary assiduity. This cyclical arises beca exercise supply is limited by the physical capacity of manufacturing facilities and ability to denounce the co-product. Given these are commodity products, prices are very responsive to changes in supply and demand. Timing capacity growth with the cycle authorises to a growth in gross sales. Demand for end-products ultimately drives demand for Color Alkali. The energy avail North America has by using natural gas kind of of crude oil has grown exports of end-products.Customers Most of sales are to the merchant market. The company is able to capture a greater hare of the merchant chlorine market than its overall share of the market capacity because it focuses on the merchant market instead of using the products in conquerstream production. be and Suppliers Almost 50% of production cost is raw materials. The two major(ip) needs are electricity and salt. Electricity comes from coal, hydroelectric, natural gas and nuclear power. Regulatory Olin must comply with legislation regarding the environment, such as air, irrigate and land quality, which requires capital expenditures and increases operation costs.The company has programs in place to diminish waste and prevent pollution. Legislation as passed in October 2009 surrounding the use of mercury cell technology, but expired without enactment. This would have increased the costs of run mercury cell capacity, of which Olin has one facility. Since it is uncertain whether something similar impart happen in the future, Olin chose to convert its mercury cell capacity now, that lead to a restructuring charge incurred in 2010. Winchester Olin has held Winchester for 80 years. Winchester is the premier developer and manufacturer of junior-grade caliber ammunition.Production is located in East Alton, IL, but refreshful plans were announced in 2010 to move this operation to Oxford, MS. This would be the most upstart production facility in North America and reduce operating costs by $30 million. Competitive environment The ammunition industry creates branded consumer products. Factors contributing to product differentiation include performance, product establishment and brand recognition. Among competitors, Wellnesss NAS Eden addle to leverage I TTS Drain name, fashioning it one of the three overlargest commercial ammunition manufactures in the United States, along with Lillian Tachometers and Remington Arms Company.Sales and growth Winchester has been able to drive sales by creation a retail brand of choice and an industry innovator. Recently, the company has develop reduced-lead and non-lead products. Sales are seasonal with an increase in sales during the accrue hunting season. Several five-year contracts provide stability in future sales going forward. Currently, Winchester does have a backlog of $178. 1 million which is dow n from the previous year. Customers Customers include retailers, law enforcement agencies, and militaries.Winchester has developed strong relationships with industrial customers, visual sense merchants, wholesalers and specialty sporting goods retailers. The company also holds several entrants with the U. S. Government, accounting for 5% of sales in 2010. Costs and Suppliers The raw materials needed include copper, ammunition cartridge case cups, and lead, purchased from vendors at the market price plus a conversion charge. Propellant, the other raw material needed, is purchased mostly from one large U. S. Supplier. Management and Ownership Management has a strong understanding of long-run value creation.Olin uses a discounted cash flow model to value the companys thanksgiving and reviews their assumptions annually and/or when assumptions are changed by circumstances. Olin sees several compensation methods that helper align managements interest with shareholders. A table outlini ng compensation can be found on page 29 of the appendix. Institutions account for 80% of the popular stock while insiders hold less than 1%. Olin common stock, traded on New York Stock Exchange, has 80. 2 million shares outstanding with an estimated float of 79. 5 million.