Thanks for taking my question. Let's conquer your financial goals together...faster. Olin has announced additional caustic soda price increases totaling $140 per ton for May and June. The response to the coronavirus did not have a significant impact on Olin's results in the first quarter of 2020.
Our operations are among businesses that have been considered essential by government and public health authorities.I will begin today's presentation with Olin's view on near-term market dynamics, followed by a discussion of the key highlights from Olin's first quarter, then close with a detailed review of each business segment. So there has not been a big issue there, and we have not been constrained in terms of our ability to interact. And how much would you have in terms of room under your various agreements as you think about liability management moving forward?I would say we listed all of the things we're looking at as options to enhance and ensure liquidity over both the near term and the longer term.The next question comes from Alex Yefremov with KeyBanc. And then I had a second question for Todd on the liquidity side. I think the other thing we need to keep in mind here as we look forward is there's a pretty significant bond call premium that goes with that, which is an immediate use of cash versus a long term. Likewise, Winchester will benefit from the scale and the incremental ammunition production capacity offered by this facility and its dedicated workforce.And with that, I'd like to turn the call over to Todd Slater, Olin's Chief Financial Officer. Or that was maybe the math there? CLAYTON, Mo., July 14, 2020 /PRNewswire via COMTEX/ -- So the incremental cash flow generation of $200 million is an after-tax number, real cash in our pocket to be able to utilize.The next question comes from Arun Viswanathan with RBC Capital Markets.
Shares are down 17.1% since reporting last quarter. I know in the past, you've considered it not core.What I would say is everybody in Olin would admit that there is no synergy between a commodity chemical company and the Winchester business as it's configured today. That's why we have it yellow here. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. Olin's second quarter earnings release, including financial statements and segment information, will be distributed after the market closes on Interested participants may access the conference call by dialing (877) 883-0383; Canadian callers, please dial (877) 885-0477; International callers, please dial (412) 902-6506, using the pass code 0672444. And I understand it's kind of difficult given the visibility but I just wanted to if you could offer a little more color, that'd be great.Frank, this is John. I would just say, caustic demand at its core is more resilient than chlorine demand at its core.The next question comes from Frank Mitsch with Fermium Research. And what are your thought processes about maybe even locking hedging or locking into sort of prices as we see them where they are today?Hassan, this is Todd. For the first quarter of 2020, caustic soda pricing in Olin's system declined approximately 8% when compared to the fourth quarter of 2019. You see the pullback on the chlorine side of things. I think that around the world right now in terms of operating rates, you hear operating rates that are in the 75% range or so. Our European Epoxy business experienced a force majeure declaration by phenol supplier during the first quarter, which reduced epoxy resin and epoxy resin precursor production at our Stade, Germany facility. I understand that everybody's visibility is very poor right now. And if I look at slide 12, you listed a number of kind of discrete tailwinds for next year's cash flow in $200 million, but those numbers add up to a number much higher than $200 million. Please go ahead.Hi, good morning. Based on our current outlook and lead time to implement, we expect an additional reduction in capital spending in 2021.In late 2020 and beginning in 2021, we expect incremental annual cash generation of approximately $120 million I'm sorry, $200 million from the initiatives on slide 12. It takes us over a year to get the benefit of the bonds on a net cash basis.