OLIN (OLN) risk factors, FY2024 10-K

Business, Industry and Operational Risks

1. 01Sensitivity to Global Economic Conditions—Our operating results could be negatively affected during economic and industry downturns
2. 02Pricing Pressure—Our profitability could be reduced by declines in average selling prices of our products
3. 03Operating Model—Our operating results could be negatively affected if we do not successfully execute our operating model in our chemicals businesses
4. 04In addition, we take actions from time to time designed to complement our operating model, such as purchase for re-sale transactions that may not improve our operating results and could adversely affect our business if these activities are not successfully implemented
5. 05Cost Control—Our profitability could be reduced if we experience increasing raw material, utility, transportation or logistics costs, or if we fail to achieve targeted cost reductions
6. 06Suppliers—We rely on a limited number of third-party suppliers for specified feedstocks and services
7. 07be forced to pay additional transportation costs or to invest in capital projects for pipelines or alternate facilities to accommodate railcar or other delivery methods or to replace other services
8. 08Purchased feedstock, including propylene and cumene, and energy costs account for a substantial portion of our total production costs and operating expenses. We purchase certain raw materials as feedstocks
9. 09Production Hazards—Our facilities are subject to operating hazards, which may disrupt our business
10. 10Physical Risk of Climate-Related Events—Our facilities are subject to physical risks associated with climate-related events or increased severity and frequency of severe weather events
11. 11Third-Party Transportation—We rely heavily on third-party transportation, which subjects us to risks and costs that we cannot control
12. 12Information Security—A failure of our information technology systems, or an interruption in their operation due to internal or external factors, including cyber-attacks, could have a material adverse effect on our business
13. 13International Sales and Operations—We are subject to risks associated with our international sales and operations that could have a material adverse effect on our business
14. 14Ability to Manage Executive Officer Transition—We must attract, retain and motivate key executive officers and the failure to do so or to effectively manage the transition of executive officers could have a material adverse effect on our business
15. 15Ability to Attract and Retain Qualified Employees—We must attract, retain and motivate key employees, and the failure to do so may materially adversely affect our business
16. 16Acquisitions and Joint Ventures—We may not be able to complete future acquisitions or joint venture transactions or successfully integrate them into our business, which could materially adversely affect our business
17. 17Credit and Capital Market Conditions—Adverse conditions in the credit and capital markets may limit or prevent our ability to borrow or raise capital
18. 18Our Senior Revolving Credit Facility, and other debt instruments, include certain financial maintenance covenants requiring us to not exceed a maximum leverage ratio and to maintain a minimum coverage ratio
19. 19Indebtedness—Our indebtedness could materially adversely affect our business
20. 20Various labor unions represent a significant number of our hourly paid employees for collective bargaining purposes. In 2025, we have no labor agreements that are due to expire in Canada, and two labor agreement expiring in the U.S., representing approximately 2% of our global workforce
21. 21Asset Impairment—If our goodwill, other intangible assets or property, plant and equipment become impaired in the future, we may be required to record non-cash charges to earnings, which could be significant

Legal, Environmental and Regulatory Risks

1. 22Effects of Regulation—Changes in or failure to comply with applicable laws or government regulations or policies could have a material adverse effect on our business
2. 23Security and Chemicals Transportation—New regulations on the transportation of hazardous chemicals and/or the security of chemical manufacturing facilities and public policy changes related to transportation safety could result in significantly higher operating costs
3. 24Legal and Regulatory Claims and Proceedings—We are subject to legal and regulatory claims and proceedings, which could cause us to incur significant expenses
4. 25Environmental Costs—We have ongoing environmental costs, which could have a material adverse effect on our business
5. 26Governmental Contract Compliance and Deliverables—Various risks associated with our Lake City contract and performance under other government contracts could materially adversely affect our business
6. 27Environmental, Social and Governance (ESG)—ESG issues and related regulations, including those related to climate change and sustainability, may have a materially adverse effect on our business