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UPDATE 1-Olin reports unexpected rise in 3rd-qtr profit

Mon Oct 26, 2009 6:25pm EDT

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* Q3 EPS of 50 cents vs 49 cents a year earlier

* Revenue down 21 pct to $397 mln

* Shares rise more than 6 pct in post-market trade

SAN FRANCISCO, Oct 26 (Reuters) - Olin Corp (OLN.N) posted higher quarterly earnings as its chemicals unit made an unexpected profit and its Winchester ammunition arm had a record quarter, sending its shares up 6 percent.

Net income rose to $39.4 million, or 50 cents per share, from $37.7 million, or 49 cents per share, in the year-ago quarter, the company said on Monday. Revenue fell 21 percent to $397 million.

Olin's Chlor Alkali segment earned $3.9 million, instead of the company's anticipated loss, due to improved pricing and higher volumes, the company said in a statement.

Chlor Alkali's fourth-quarter earnings would be similar to the third, Olin said, while Winchester earnings would drop significantly due to seasonally weaker demand, while exceeding earnings from the same quarter in 2008.

The Clayton, Missouri-based company now expects fourth-quarter earnings of 15 cents per share, including $35 million of recoveries from third parties for environmental costs incurred and expensed in prior periods.

Shares of Olin rose by more than 6 percent to $16.88 in after-hours trading on Monday, after closing 1.7 percent lower at $15.84 in regular trade on the New York Stock Exchange. (Reporting by Braden Reddall in San Francisco; Editing by Tim Dobbyn)



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