Olin Corporation, the parent company of the Winchester Ammunition business, had to contend with Hurricane Beryl’s aftereffects during the third quarter.
Additional downtime in its Chemicals business added $9.4 million to its estimated third-quarter Hurricane Beryl impact of $100 million. The company anticipates a residual fourth-quarter impact of approximately $25 million on the category.
Winchester Ammunition segment sales for the third quarter were $432.8 million, compared to $380.2 million in the third quarter of 2023. The 13.8 percent year-over-year sales increase was primarily due to higher international military sales, military project revenue and White Flyer sales, partially offset by lower commercial ammunition sales.
In the fourth quarter of 2023, Olin completed the acquisition of the White Flyer business, which is included in the Winchester segment. White Flyer designs, manufactures and sells recreational trap, skeet, international, and sporting clay targets.
“Winchester’s third-quarter results fell short of our expectations due to weaker commercial ammunition sales, as our retail customers experienced lower sales and elevated channel inventories with slowing rates of replenishment,” offered Ken Lane, president and CEO of Olin Corporation.
Winchester’s third-quarter military shipments and project revenue increased 35 percent sequentially.
Lane said the company expects Winchester’s fourth quarter 2024 segment results to trend sequentially lower as it enters the seasonally weakest quarter of commercial ammunition demand coupled with retail customers continuing to reduce their elevated inventory levels.
In the third quarter of 2024, Winchester segment earnings were $53.4 million, compared to $64.5 million in the third quarter of 2023. The $11.1 million decrease in segment earnings was primarily due to lower commercial ammunition shipments and higher propellant costs, partially offset by White Flyer earnings, higher military shipments and military project revenue.
Winchester’s third-quarter 2024 results included depreciation and amortization expense of $8.5 million, compared to $6.6 million in the third quarter of 2023.
Image courtesy White Flyer/Olin Corporation
