04 May Winchester’s Earnings Dip On Higher Raw Material Costs
Olin Corp reported sales at Winchester for the first quarter 2018 were $170.9 million compared to $162.6 million in the first quarter 2017.
The increase in sales was primarily due to higher military sales, partially offset by lower sales to commercial customers.
First quarter 2018 segment earnings were $12.0 million compared to $25.1 million in the first quarter 2017. The decrease in segment earnings was primarily due to higher commodity and other material costs, a less favorable product mix, and lower selling prices. Year-over-year commodity and other material costs increased $7.0 million. Winchester first quarter 2018 results included depreciation and amortization expense of $5.1 million compared to $4.9 million in the first quarter 2017.
John E. Fischer, Olin Corp’s chairman, president and chief executive officer, said in a statement, “The Winchester business continued to experience reduced commercial demand and higher commodity material costs. As a result, we no longer believe Winchester segment results will improve for the full year 2018 compared to 2017.”
Winchester’s principal manufacturing facilities produce and distribute sporting ammunition, law enforcement ammunition, reloading components, small caliber military ammunition and components and industrial cartridges.