Olin Corporation

Q3 2021 Earnings Conference Call


spk_0: following today's brief opening comments there will be an opportunity to ask questions to ask a question you may press star than one on your touchdown phone to withdraw your question please press start than to please note this event is being recorded i would now like to the comets ever to steve keenan oh and director of investor relations please go ahead steve
spk_1: thank you done good morning everyone and thank you for joining us today a point began let me remind you that this discussion with the associated five question and answer session apollo's enclave statements regarding estimate act expectations the future performance please note that the the forward looking statements and the actual results to differ materially from there is projected some of the factors that could cause actual results to differ from a projection are described without limitations and the risk factors section of our most recent form ten k and in the third quarter earnings press release a copy of today's transcript and five will be available on our website the investor section under bad for them our earnings press release and other financial data and information are available under press release whitman this morning or scott sudden all ceo at thoughts and president a party dominic cooper president clark i products and finals brett foyer president winchester gym garlic all and see go and talk later all and see up though scott will begin with the brief remarks after which will be happy to take questions are not turn the color but it's got that
spk_2: out by stephen hello to everybody
spk_1: i'm pleased to report the all and chain of once again proved to be the most unique and agile and industry in median the clear expectation of our shareholders again i just have to say that the solid performance by the complete team set me up to be able to focus on the items that drop are you sure which are enhancing are contrary and value toddle tony not ratchet on undervalued products parlaying to go a creative capital allocation building now are interlinked matrix of activation knobs growing shooting sports participation and lifting all and people this is a company that is focus on continuing to grow adjusted ebitda and couple in that with balanced capital management deliver more than ten dollars of orleans per share in the near future torment some breed commentary on abuse live and get to the queue and i quickly twenty twenty one is expected to be a solid result or all and for the reasons shown on slide number or that the longer term fundamental of the man that grows faster than supply is starting to be exposed here and twenty twenty one i'm reading actions to get a higher value for are scarce resources is proving to be successful current highlights of that success or that we continue to exit business that was based on non negotiated price align our product chain mix with the intended impactful purposeful studies of are generally matrix of activation nodes start accelerating the value capture of epic or a high grin and draw an expansion in shooting sports participation with our shoot united movement while there may be some end of year holiday slowdowns which are really supply driven not demand driven and some seasonality that resulted as sequentially flattish fourth quarter result we still expect twenty twenty two to exceed twenty twenty one the reason for matic or bad the results in twenty twenty two is shown on slide number four the mine always and and automatic is that the previously mentioned demand growth or supply grow dynamic just gets better and better across all our businesses more people are enjoying shooting sports demanding queen and wind energy and expanding their homesteads the major reason and aren't the matter is that all of olin's activities are designed around a foundational cultural principle of only selling into value we know who we are in october we took the decision to close some war undervalued assets and simultaneously used other existing global asset and product with did he to grow omens value as our own easy you assets are getting right sized we are a global
spk_2: fire a pc used to satisfy our higher value products to me
spk_1: even though we have grown earnings for five consecutive quarters and deliberate a never free cash flow that is approaching twenty percent we still my show that our performance will continue to important but maybe more importantly we must demonstrate our ability to manage uncertainty and all agility swine number pop as an illustration only has three substantial businesses each with a meaningful contribution to segment on for reasons that we previously discussed the winchester which is shown in read on the slide consumer and defense business offers solid and sustainable growth reasons we will discuss and just a moment the epoxy which is shown in green on this blog engineer materials offer differentiated growth as we expand margins in that business the cloud ally products and finals industrial essentials our largest organic and inorganic growth opportunity we expect the core alkali segment results to be slightly volatile across a brief transitional window when we have a model profile shift between the relative
spk_2: strings on the two sides of the easy you
spk_1: we think of the net company volatility as ripples on a difference
spk_2: not waves on a shallow again
spk_1: we should control our destiny here continuing with the fame of good up the minerals on slot number six are perceived only world chemistry has new world application and value i won't read all these make a trend multiplier is as i'm sure they're familiar to you but instead jumped slot number seven and hit all the differentiated
spk_2: growth profile of a pox
spk_1: a pox he sets itself apart from other engineer materials by offer nearly non substitutable performance almost every in use categories growing faster than global gdp consider the outlook for more and larger wind turbines are clean energy consider the outlook for electrical laminates for the new mobility trends and broad electrification trends to set of the outlook for infrastructure expansion and replacement and so on even though we recognize the value of this business in a pox the resin files and in a pot fi systems sales the valued robberies really epic or a hyper and we will be expounding on our globally meeting epa or current position in future earnings
spk_3: calls
spk_1: we expected won't be long before our pox business delivers greater than one billion dollars of epitaph and carries the same enterprise value at all have always curious today more representative of a highly engineered materials company finally i will close onslaught number eight we're going to start popping more about a p s in conjunction with a butter and segment earning we are advancing in our evolution and expect our activities and debt reduction refinancing show share repurchases and him emanate to be big contributors up forward value and that value shows and a p s no doubt that a majority are for discussion will center on leadership or lynch products great supply demand fundamentalists parlaying and lived and all and people however new ways to create shareholder returns are have all been for all when and how shoppers are above ten dollars of earnings per share for that includes my opening comments and tom we're now ready to take questions
spk_0: thank you we will now begin to question and answer session two ft question you may press star than one on a touchdown if you're using the speaker phone the think of you can said before pressing the key know your question please press star into and depending upon momentarily to symbol or roster indifference question come from her son on and with limbic mobile we fill it up morning scott
spk_4: scott wanted to touch on not you know some of these not natural gas prices conditions had we've seen not just in the us the globally as well so so you know in the usa to say it you know if you could fit of door to how you guys have dealt in you know what was a pretty tricky quarter and continues to be a know you know the tricky for q in guns are the hikes be seen a natural gas prices and if you could also talk about got you know what you guys are seeing and guns because curve impact weird natural gas prices collation in europe and the apollo curtailments we're seeing in china as well
spk_2: yeah queen sure you know cause we have a couple strategies to manage the local issue that's what is now we have a pretty strong hedging program where we have some amount of attached out into the future which helps protect does your the rest of it is absolutely one hundred per se said covered in you know product pricing and every day we get or ability to recover that on instantaneous our bases as we get out of some of these contracts for keepers and hand handcuffs of into more order one is maybe your your second one option rising global energy costs is actually a plus for always be and that's because trade flows get more expensive and trade movements get more volatile and that just fits right in into our model of in a whipping the value of his own scarce resources
spk_4: very helpful and as a photo of scott on you know this the now you know your guiding to net debt to either dawdling around one game by the end of the year and you know this very helpful talking about your ten plus known as in eat yes you touched on so to share buybacks and and money and the like has been meaningful going to viewed as you know as we look at twenty twenty two with the balance sheet know as as clean as it is how should we be thinking about got to allegation the did lily you know if you good dog dig a bit deeper into the thought process with with regards to sort of meaningful share buybacks as well as imminent
spk_2: gas bill i'm in charlotte are all couple one element of patil cover about stopping by enjoy a good bit of that is gonna go toward you know our grow programs and i suspect maybe they'll be some other questions call and we're happy to talk about how we go out and row row the top
spk_1: so that certainly you know a part of it has already taught you want a couple of else that the if you're right the size as we took the leopard the algae that does provide all a lot of financial flexibility accomplish the structuring and parlay that we've been talking about at just reference go forward we with it back to target in that forty percent range of our leopard free cash flow as you're all the rewards that includes the dividends and an opportunistic share buyback as we go forward
spk_4: very helpful thank you so much as
spk_0: the next question comes from my on with wells fargo please go ahead
spk_5: hey good morning guys nicer another great quarter scott i'm just curious this sort of feels like given how well your results are common in this year you're sort of in the ninth inning of the transformation in and the he sort of talked about a lot of things that can continue to improve so just curious where you think you are into your only been here years in a good year system your what what else do you think could be done to continue to improve the company
spk_1: look hi my them and and bites know i mean look i was i would say the the team here at all where has a long ride away and fraud up i mean all all we done so far as put up bit of a disruptive bottle in place which is
spk_2: is highly complex and hurry to the fact that for the foreseeable future that demand grow actually grows faster ban ban supply grow up there there's a lot more to tom beyond that i would say it is to be paid about business bob it as a little bit
spk_1: here we are in winchester about to embark on i shoot united program to go out and and road the number of people doing sports shoe shooting immensely and gretel get an opportunity to talk about that only way now
spk_2: call in in a pot see you know some of the systems and some of the high growth areas like mobility that we provide are starting to take all maybe more important you know we've set ourselves to the point where we're a buyer a b c news out there and there is global product and asset liquidity available and we're just getting started on that program of accessing that to go out and grow our business and then of course will compliment that with energetic acquisitions so that sort of out how how the runway shake sale
spk_6: god and and then is a follow up
spk_5: know the first half your her a little bit about five hundred million in a bit second half year in the seven hundred million dollar range when you think about the volatility or maybe just a meal canada to the delta between the quarters is that five hundred to seven hundred million sort of the a rains that you can keep your he better within and and that sort of the potential for next year's you think about doing better
spk_2: well i think the reason like that you made your you see those differences touch with you know we're just getting good at practice saying our model and every day we continue to get more knobs that are under our control in a reference some of our remarks we made up about you know getting some of our our materials for open and free we negotiated as opposed to being tied to to trade industry so you know the reason that that are early volatility has been there it's been a one way up college you know volatility there is just because we're getting better expand our our model up a when you look out in the future of course were saying that twenty twenty two will be better than twenty twenty one and there may be some some time period where we have to shift which side of the seaview sets are market purchase a patient me because the days a week side is still costing
spk_0: thank you
spk_7: be next question comes from alex yes no with keeping please go ahead
spk_8: they do the morning everyone on the squad to mention at the renegotiations in his lives on you providing details were percent of and businesses operating sheesh and could also mean by that the the merchant that the businesses percent of revenue one percent of youth
spk_1: opacity
spk_2: yeah so i think i heard your your your question i mean at least on the the the course side we continue to make progress you know getting that opened opened up and we we expect at least by twenty twenty three that that's essentially
spk_1: oh opened up but you know will have to see our discussions go over the next the next quarter four hours a week we haven't really sure you know just how eight are at the business jews in relation to the the rest of it does it's not that important the size of the yet the business what is important is that it is the linchpin that such value across our whole a pox change at your own is focused every day on lived in the value of that scarce resource pat would you have anything else to add about epic or a hydrant he i think you know the other thing and keep in mind about at the as we have a lot of flexibility between the merchant market and our captive production we have we have multiple not the laughing
spk_9: that said we could activate bring more value to that whole a patsy value chain
spk_10: okay understood thank you for that
spk_7: could you discuss
spk_2: currently in the poor for e d c as well what what is involved here and in the how would you describe this opportunity yes yeah i'm into tom udall make some some comments on parlaying of btc as just on the broader topic i would just say we're continuing to be successful develops bad program and you know if you think about many of our products korean costing bleach see
spk_11: he a park see an epic core a hydrant in the third quarter we had success and parlaying activities around all those targeted you want to talk about it isn't sure thing shot of your for many camp on you know holland and we will a large your presence and in hurts a d v of course we can touch she'll reach customers
spk_1: i'm all of the world with our positions in the us all if we have expanded our our partly network there as well because you're we have customer demand now you know in no in europe africa the obviously or india out in the northeast asia latin america and our ability to have a compliment our own supply with supply then you're happens to be available at certain opportunity find in the world to allow them to get your bring that particular to the customer young and though
spk_11: the like them so badly they are from the ability to help them times out of material into their pt he had you on that are being the other growing market our ability to get close to the customers without arlene work at work out that it that translates into into value for only you that we realized and i young
spk_0: you're going forward
spk_12: thanks like
spk_13: the next question comes from kevin mccarthy with vertical research partners we go ahead ah good morning scott you've talked about in a pox he said man margin goal thirty percent the pass and this morning i think he threw at a billion dollars as and he bit dark goal for the segment
spk_1: what do you need to do in that business to get there from here what it what are the two or three sources of incremental improvement you know recognizing that the business is already come a long way
spk_14: me alone with additional runway the a see and twenty two and beyond for up for upside in the park see
spk_1: but i would say to keep the the activities going that we've already started by you know package and of as a little bit yeah l kevin that
spk_15: the party i would say it is really it it's actually that the right time it right place and and what i mean by that is if you look at that the mega trans and you look at a man it out for a party in these different segments l right place right time right so you look at composites and like way
spk_1: a patsy enables that you look at land when has dumped the organization right place right time electrical laminate immobility hell and he's hit that are used in a battery a patsy right place right time tell i think what what you're saying it's been we've got a ever structure in place with that commercial organization and place and wally we can go across the whole globe
spk_15: around these applications extracting value you were we a guy you can bet best be extracted a cabinet i think we're a right position he yell to be able to compliment what we have already been doing and to keep building value around allow these mega transit play right in the wheel out of of how patsy
spk_1: brains valued to the market
spk_16: okay so said less strategic and more just in a riding the sources of demand improvement think that yeah one per se strategically make no mistake that epic or i'd rather the scarcity of epic or i'd run and them up multiple that we out there it is much more strategic going forward that it has been the path
spk_13: and i would say that we may have opportunities and aromatic what we do it and all that targeting humane to bring this that contrary it model to play so that could be very strategic to our future as well understood and and secondly if playmates sky that this when they ask about slight a this is something you talked about you in the past breaking the cycle pattern this was wondering if you could put a finer points on it i appreciate you the analogy used the ways in laguna rebels on notion and so forth but you even specialty chemical companies sometimes suffer a down year you know if you were to look out over the medium term three to five years
spk_2: what what would it take to cause a down year in your mind from role in is a new shift from weaker side to stronger side of the easy you are an economic recession or something else
spk_1: your that would precipitate you a cyclical change for the company
spk_2: i mean even just got back to your your first place question where are you had caught etc you just riding the go away by me i would make no mistake about it and we were heavily focused on value over volume it appears anyway it's a way that all winners is creating so you know your your big
spk_1: zack ryder number on lot right there were trying to represent that this is no longer a stick with business there was a fuck what business because it or old and make it a certainly as and we completely changed how we're doing doing business now this is struck school we're better is going on and not only that there are structural dynamics that have changed and dog in the marketplace you know we have a reasonable view out five years right and every single place we'd look demand growth exceeds our some the supply grow
spk_2: so put their me down quarters that is not impossible but i do want to reiterate that you know if we have to shift which side of the see you is set in our market participation know that that's a relatively short term i don't
spk_13: that you may or may not see that is not a year long type of ship we've taken the business from be in a little bit slower to be a very nimble to go out and make sure that we do what we need to do to make sure that we we get significant
spk_0: bow you from olin's scarce resources
spk_17: thanks so much that's helpful the next question comes from frank miss with from him research please go ahead
spk_1: thank you and congratulations on another solid course
spk_2: later announcement yesterday about sharing some capacity in the alabama could fuck about the decisions behind that numb it away were you think this leaves the a clerk like market in it's supply and demand balance yeah but find you try it and we know we won't comment on the market the decision was strictly driven by the fact that you know we're we're still under value there and we're just not gonna sell enzo into low value mark i mean i can tell you where it leads always
spk_17: supply you know demand balance and you know that is that is in a place where were position to go out and oh i see you set the right time to support road that are downstream derivatives and will likely be a smaller participate in march market going forward particularly in those places where we're going to be compelled to continue to supply brew next year on trade indices bad you know actually don't reflect the market value of the product okay gotcha gotcha i'm i'm like well the if you were profitability contribution index card that it's an investment bankers to him i mean just an absolute optimistic
spk_1: i know where do you see that going you know for que
spk_2: in twenty twenty two
spk_1: well you know every day we're focused on on lived in value and that is why i'm measurement that as everybody in the in the topic together so you know where we're focused on continuing to move it up again it all to reiterate that there may maybe a quarter to where we have to fall flat spot at it to make sure we're we're position right and to new to little ones value but that will continue to move it up i mean down an engine and your business is what do you think about four other do the show a week we certainly can see a continuation of the train way there job or and five remains relatively stronger and a person that got mention it
spk_17: contractor for right away we highlighted in on our our our slide it we shifted or projects away from index to really negotiated your day there is that the of the value their that were cheating as well so we can tease got momentum play through it or he remains strong out the red to the point where
spk_0: only one in the in my division at to compliment past point on them on on the a five continues to we did you achieve value of course you'll get the causing i has has improved are certainly some increasing area of i knew about the interview you that are disrupting those trade posts
spk_18: so we're seeing talking about that well i hope that net i'll leave you to move up and reflected in the guy we continue our a korean you're totally each flight the stock model
spk_19: ripple effect thank you so much the next question comes from jeff to the cost of with jp morgan please go ahead oh thanks i was i was looking at your cost of goods sold which i think with one point six eight billion in the second quarter it was one point seven one billion
spk_2: what it cost of goods sold good down sequentially
spk_1: and would have put your raw materials would have been higher
spk_20: did you simply ship lower volume it is that the her factor that can you explain
spk_2: you're a job yeah sure i'm in what is it that least it in one of our professors you know we had some about of lung or are you have your membership at the end of the third quarter you know hurricanes other logistics issues and so forth are you know slow down
spk_21: to folly volumes of it there so that's probably the main driver taught about right yeah i know that that's actually the case when we commented in the deck agency corrupt like products finals i was down sequentially really that was resolved
spk_18: oh the result was lighter so that's why you saw lower cost good soul
spk_19: and then you know in your a your third slide he said shifted another ten percent of merchant chlorine to freely negotiated
spk_1: and now less than one third of volume remains under and know if all of that vault the remaining volume that was under index is now you know it some
spk_2: market contract with the annual economic effect of that but kill the i our just know
spk_22: that say without tried the itemized product by a by product that you're the impact of getting more of our merchant henri out from index is important for more important part is that it lifts our whole portfolio of corey
spk_0: derivatives now that we were to get the remaining or out from under index it it would have you know of a faire economic impact to to always but other the we don't expect to hold on to that week one third of all that remains under index because
spk_23: those customers psych meds aren't going to be receiving it or korean from all as we're stuck with having does apply for one more year at some some value that isn't representative of the market so lose some of that are you
spk_24: okay thank you very much
spk_25: her
spk_24: the next question comes from just still just silverstein with please go ahead
spk_2: new things could morning i just want to go back for the and to the in a couple of occasions for
spk_1: i would be this year was a big you for for debt reduction talk about maybe the capacity for for by back next year when you're thinking about group a minimum amount of cash on on on hands
spk_2: president reduction in and what would be left over from potential of neighbors my next bill i'm in no taught toddle expand on this a little bit i mean what would i would say to set the stage for his explanation is that you know right now i'm back start represents on you know an immediate return of about twenty percent so you could expect this to be a
spk_1: nip again part of our forward program on you that that's right really you think about twenty twenty one or first priority is really meant yo paid out that we're targeting your one point one billion dollars of debt reduction in the sheer your so far it's about eight hundred and fifty million dollars to the first three quarters with take a law that high cost
spk_24: or system now and we will will plant reduced at further here in the fourth quarter of that will give us down to the about one times range know ultimately will probably targeting gross debt in the two and a half billion dollar range yeah tech dancer party question josh your where were really targeting gross debt that is that two and a half range and as we said earlier your were there a focus on your our financial flexibility to enable us to do structuring activities which would include yo am in a as well as parlay an ill will
spk_1: you're targeting forty percent ryan that forty percent range of our laboratory cash flow torture older rewards include the evidence and buybacks
spk_2: it is helpful and then just them that the to have money even though my and
spk_0: previously suggested it can be done in in a few years from now
spk_26: is that the did the do for the thicker than and where do you think given the volume and be three know what could that you never beaten to be up soon
spk_24: well i mean we'll we'll we'll keep working to move in the got off i mean this year will will get pretty close to that party pretty obvious i i think next year we've absolutely you know said that will lift ebitda over this year we're evolving
spk_2: also setting targets based around he psn so we have a fairly short term goal of ten dollars a share oh look at where we go from there his thanks
spk_27: the next question comes from john roberts with you yes please go ahead
spk_1: i do it seems like the doubt contract is still one of the largest opportunity going forward does that contract on open up the one or doesn't open up in the the silvery kind in the latter could you talk about how far out the longest are in their contract know
spk_2: oh no i won't give too many specifics on a range mass you know with a particular supplier customer but when i will say because it's and the public domain all already edges
spk_1: material i know is that you know our major
spk_28: to supply they were doing at cost airlines and twenty twenty five and so now be options in each and every obstacle be cash or creative toll
spk_0: men assign earlier
spk_29: and
spk_30: yeah i'm i'm sorry i missed the question i just went went quiet on alert on your and iran
spk_29: anybody still there a top and you've years
spk_30: yeah i can he would you like to go to the next question get out for some reason we we just lost it yeah sounds like his them one disconnected
spk_2: the next question car comes from and viswanathan with rbc we go ahead
spk_29: i take stick my question or to threats on the continued strong results here
spk_31: so just wanted to ask you know on your comments
spk_29: that twenty two will be better than twenty one you know you slide thirteen has positive price momentum and in across all of your businesses pretty much am so assuming that you know continues is giving your comments that you can you to focus on value
spk_2: do you expect each of the segments to show hire a either now or how should we think about
spk_1: you know that comment in the context of the segments next no i i think that's that's fair each and every segment should show better results and twenty twenty two relative to twenty twenty one right next and then just a question and the cost curve you know you obviously moved up
spk_2: the values here on the easy you
spk_0: how much of your capacity would you would you say still an inside not appear standards on on value and is there anything you could do to change that and mean is there need be bottle making i know you have the higher productivity but ah
spk_32: and you know anything that you'd you'd you'd focus on to think about changing that situation and and again how much of your capacity would you say still and maybe could be ready for for shutdown thanks
spk_24: yeah i mean when when when you think about that you think about my capacity standpoint you know the i would just start out and twenty twenty five right clearly thirty percent of our capacity you know gets zero retired today so that's certainly a picture
spk_2: if you take that if you take that out of we still have some some work to do it it's not necessarily a cost issue though i mean i think our manufacturing and supply chain games or done just a great job driving productivity and flexibility
spk_1: get our assets it's more still a market value issue and while a lot of our derivatives are starting to get to the point of reinvestment economics if you look at what we sell into the heart check market so tight that you see elemental chlorine and cluster the go into the urgent marker
spk_2: you know there's still some work to do their to lift those up to a point that we get somewhere close to reimbursement economics
spk_1: dirk next question comes from iraq featuring with city please go ahead
spk_24: thank you in the morning
spk_2: air horns roughly eight hundred fifty thousand tons of a few capacitance you're just a question on strategy you expect part have an equivalent amount or how do you see that going forward you think you'll let let me down here my answer this question charlie the of a quality of a week we still see that got it it the
spk_0: you're pulling i tell you that out there is a yellow liquid the that out in the market we believe it's still your cool that available globally the weekend that we can leverage of course that these people to become this got did he know it has cost you know impact other areas where we're going up capitalize on that with our the dish
spk_24: but we also feel as as we look at the make a benefit the demand that is clearly going across the all of that fully police are a few and resident now parlay if you are going to play a bigger a bigger role in our ability to free know the view the north don't allow it to
spk_27: the workplace the oh it's room driven i'd are chlorine a problem areas like the pot the upon our idols paper operator video organic the even back to the elemental boring a we of opportunity here to flex or or or or a that read
spk_7: and all other you to use into the system as well all what the purpose of lifting and and getting the value the view into the customers that we serve
spk_33: oh cool and then and the one third of volume in inquiry remained than your index how much of that is related to the i am too and market and one hundred did that change and then the next year
spk_7: well i mean look at it you know how just a part of it is it all goes into t i o o two and you know that some part of a market we're not gonna be sorted out and twenty twenty four eighth at so part
spk_24: the you
spk_33: that go down are related to this shutdown that was just announced an act posh alabama thank you
spk_1: next question comes from speed burn with bank of america merrill lynch please go ahead yeah me too you you how he smiled at him with streets the room to value between chlorine and caustic you know and appreciate the cornfield
spk_2: you you'd thinking to some complex hear that marine values moon and a data point here than likely of my dreams i'm happy for example perhaps you know might have been at the bottom and about marines value to you of chlorine use it for me see that issue
spk_33: now among that the highest value in markets more chlorine for you
spk_24: the reason i ask is is a getting to the point where you think there's risk of
spk_33: capacity expansions and at the
spk_1: in the market drew comparisons or or customers backing agreed
spk_2: yeah thanks i'm a new put yeah i'll allow korea korea derivatives have moved up i would say we have a long wait at the because it's certainly not at the high end of that that range today up couldn't move up to a point where it supports reinvestment economics it's certainly not impossible do we expect to see expansions out in the future whether it's
spk_34: at at be or even have you thought of as as just in are we we expect that as see sometimes get it out that out your otherwise the world's not gonna have a not of those are scarce scares products once those expansions are announced
spk_0: you know i'd keep in mind that there's still likely a four year gap where demand continues to grow faster than supply so the only way that changes if there's it is if they're just multiple announcements of multiple expansions
spk_35: they continue over the next ten years
spk_24: and then we look at you know briefing on some of these chlorine runes and like pvc since edi fee
spk_1: the both of them had ripped me to go to the video sixty a pound difference between them is that fair to you that don't stream t v c going there's not much of a margin goose's edi theories that compelling to you
spk_2: who one move in that direction
spk_24: oh no i mean where of course of a large largest parts supplier of see and know that some material that we've moved up in value i think thought the recent movements or p see someone that may be a six month on month went out it went up would like there were some rest of it coming down where by the way we had a number of activations around see you don't make sure that at least always portfolio did not know now that you saw pvc move move back up i would you say that i think we have some some room there clear
spk_2: early the fundamentals for pvc work good longer longer term and ya there's a margin laugh at ppc gets over overeating see and i think we're position to take advantage of that if you drop
spk_1: next question comes from matthew blair with tutor pickering hope please go ahead a good morning nine cracked congrats on the the great results on the stickleback the capital a case in the based on your twenty twenty two even a game
spk_2: the you think you should be able to generate at least one point six billion three for next year and he meant and forty percent the shareholders that the that six hundred million that that remaining one billion so we think about it is dry powder room for emanate either like transformational him and they are both on and then a because the back of pretty smooth
spk_36: and the mouth
spk_0: damn electric number certainly are that that far off so i mean you're you're exactly right up you will have options for that part of it is an and acquisitions up part of it is also does support you know our parlayed activities where we go out and you
spk_37: global product and asset liquidity because we will have some needs or various logistics capabilities we do that that's really low capital it's very light touch and terms types of capital but i just wanted to complete complete picture sounds good and then previously nothing of hard to to either dollars in winchester undefeated either like valuation or passes a movie and mix the ball i'm you know it it into the environment as him that he has years since it's bigger part of the pictures that has anything changed in a i get confused pride not they'd of of how he winchester put in a portfolio of in long term
spk_1: well i mean just as as a great business or i've still has a lot of a lot of way and last breath speak here and just a moment about our she united men but you don't you if you heard a bright bright the business now just just a little game
spk_2: pretty bad sixty million people do a sport shooting hours of after growing you score really in the country
spk_1: oh so and now we've got this program that were about to roll out go out and increase the pie read your to talk about chip united yeah just a little bit towards guts and sixty million people to participate now really participate for the main reasons do with family friends guilty of
spk_37: dress a large is over two hundred million people of all demographic
spk_1: just you know what what does shoot united is is a sophisticated communication strategy to introduce ourselves on that great things about recreational to explores to those two hundred possibly okay thank you
spk_11: next question comes from roger smith with think in america we still ahead
spk_1: thanks very much are following a series announcement shut diaphragm capacity do have left in short chinese he is
spk_37: yeah yeah we'll we'll we'll we'll probably get the exact number but what a what are we all say is you know all of our capacity you know used to be a diaphragm based in you know what that announcement with totally take it out about a utter eighty thousand something like that
spk_38: that is a few times
spk_0: so we took out a good chunk of it but we still have a lot
spk_39: okay and them can you comment on coin via value and volumes and to bleach starting to fall versus other drew this as we move out of the pandemic are people still we can all services they can touch
spk_40: this is on the i want me to that question they split of through yeah we we have been bleached is about the dub ya in concert with the with the bible that about the new york leeches also go dumb
spk_24: the eight be scarce your father he idolizes fortunately pretty sure we clearly have had seen the dynamics play out of or in enfield if you value that moved up in in in bleach on the clearly much more room as you know bleachers use into defective been and wastewater treatment areas you delve into the is too it'll ruin a bit more value to eat needed and so we're we're still point
spk_1: up with a with the long run when thought about to after value or this done
spk_2: i told you i'd be guided property and to on great markets
spk_1: thank you very much
spk_2: right
spk_1: again if you'd like this question has stolen and wanted to join the queue
spk_40: next question come from mike lee had with barkley please go ahead
spk_35: thanks to morning on
spk_41: i just
spk_42: we're slowly or touched on inorganic
spk_1: opportunity new maybe just much know what you're looking for their on to help us do with either in terms of size or geographical new product the mansion just give us a sense of and of what you're you're going after them not sure i mean either sum it up i would say we're looking for outset really pop matt our model so i mean that that opens up a lot of possibilities you could imagine that were able to acquire easy you capability all though that bay not be necessarily north american focus there's a lot of opportunity for us to expand into other geography another cop what met to our model would be you know derivatives just like we have all coordinated organics derivative child and we have and a park see shade and we go part of a way down finals there's other change that certainly speed off elemental for and those would be great compliments to our bottle whereby we get a lot a lot more
spk_0: lost her across our patriots and get value back time why that we have today the other thing i would say it's also not impossible bet that we discovered that some of those things that have a direct compliment to our model
spk_1: that actually our commercial added to might apply to other businesses as well that we might acquire so we're thinking about all of those possibilities
spk_2: the street and in the maybe just for phones digging into the epoxy said you did if i look at my like in his life parker discussion around engineered solution
spk_0: he is it fair to say that you're trying to find ultimately snow muslim are you more come the liquid apart the in try to push more downstream farmers and this versions things like that he was young

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