Olin Corporation (OLN) recently reported fourth-quarter results, which included earnings per share that topped the Zacks Consensus Estimate by 40%. The company also declared a dividend of 20 cents per share. It is the 333rd consecutive quarterly dividend paid by Olin and translates into an industry-leading yield of 4.7%.

Company Description

Olin Corporation is a manufacturer that operates 2 business segments: Chlor Alkali Products and Winchester. Chlor Alkali Products manufactures chlorine and caustic soda, sodium hydrosulfite, hydrochloric acid, hydrogen, potassium hydroxide and bleach products. Winchester products include sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges.

Solid Earnings

The company recently reported fourth-quarter results, which included earnings per share that topped the Zacks Consensus Estimate by 40%.

Joseph D. Rupp, Chairman, President, and Chief Executive Officer said, “Winchester achieved the highest level of fourth quarter segment earnings in its history, reflecting the continuation of the stronger than normal demand that began in the fourth quarter of 2008. Segment earnings more than doubled in the fourth quarter of 2009 compared to the fourth quarter of 2008 driven by better military sales, which increased 22% year-over-year, and improved costs. Winchester’s record full year 2009 segment earnings of $68.6 million were more than double the prior full year segment earnings record.

“Chlor Alkali fourth quarter 2009 segment earnings of $5.2 million reflected seasonally weak demand. ECU netbacks improved approximately $50, or 13%, in the fourth quarter of 2009 compared to the third quarter of 2009, while chlorine and caustic soda volumes declined 8% in the fourth quarter of 2009 compared to the third quarter of 2009. The fourth quarter 2009 Chlor Alkali operating rate was 70%.

Rewarding Shareholders

Olin also declared a dividend of 20 cents per share. It is the 333rd consecutive quarterly dividend paid by Olin and translates into an industry-leading yield of 4.7%.

Bullish Forecasts

The Zacks Consensus Estimate for earnings was raised on the strong fourth quarter. Full-year 2010 forecasts of 75 cents per share climbed from 68 cents over the past week. For the following year, projections of $1.12 were increased from last week’s 93 cents.

Leading the Industry

Olin’s return on equity (ROE) of 20.5% tops the industry average of 14%. The company’s net profit margin of 10% doubles the industry average of 5%. The aforementioned dividend yield of 4.7% compares to an industry average of 0.64%.

Alex Kolb is the Growth & Income Stock Strategist for Zacks.com. He also writes the popular daily commentary column for the ZacksElite.com service.

Zacks Investment Research

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