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Byline: ALAN R. ELLIOTT
If you've glanced at price tags on copper pipe, electrical wiring or stainless steel appliances lately, you know even common metals have become precious.
Prices are up -- way up -- largely because the rush to feed China's rapidly developing economy has squeezed global metals markets. The bonanza is pushing metals producers to their limits and rewarding them handsomely for their trouble.
No surprise, then, that Olin reported its most successful year on record in 2004.
The company's largest grossing business is its brass division, which makes roll copper sheet and strips, pipes and tubes for electronics, automotive and household goods. Olin also makes chlor-alkali-based chemical ingredients and owns the revered ammunition maker, Winchester.
2004 revenue at the mainstay Olin brass unit rose 41% from the prior year to $1.2 billion. Operating income soared 364% to $51 million.
More surprising was the turnaround in Olin's chemical business, which had seen income drop for the first two quarters of 2004. By the end of the third quarter the division's income had turned positive. By the end of the fourth quarter income had gained 268% for the year.