Olin Corporation, the parent company of Winchester Ammunition, reported net income contracted by two-thirds in the third quarter after registering a sharp drop in revenues. Sales in the quarter declined 28.0 percent to $1.67 billion, compared to $2.32 billion in the third quarter 2022 as all segments lagged the year-ago period, but the Winchester ammo business fared better than the Epoxy segment (down 50.0 percent), and the Chlor Alkali Products and Vinyls segment (down 23.3 percent). The Winchester segment became the second-largest operating segment for Olin after the Epoxy business was halved in the period.
Consolidated net income amounted to $104.1 million, or 82 cents per diluted share, in the third quarter, compared to net income of $315.2 million, or $2.18 per diluted share, in the prior-year comparable quarter.
Third quarter 2022 adjusted EBITDA was $547.8 million. Third quarter 2023 adjusted EBITDA of $314.8 million excludes depreciation and amortization expense of $131.0 million and restructuring charges of $11.9 million.
Winchester Ammunition sales for the third quarter were $380.2 million, down 8.2 percent compared to $414.1 million in the third quarter 2022. The decrease in Winchester sales was said to be primarily due to lower commercial ammunition shipments and pricing, partially offset by higher domestic and international military sales.
Third quarter 2023 segment earnings were $64.5 million, compared to $89.0 million in the third quarter 2022. The $24.5 million decrease in segment earnings was primarily due to lower commercial ammunition shipments and pricing, partially offset by higher military sales and lower operating costs. Winchester’s third quarter 2023 results included depreciation and amortization expense of $6.6 million compared to $6.1 million in the third quarter 2022.
The company said it expects Winchester segment fourth-quarter results to be similar to third-quarter 2023 levels even as it performs its holiday shutdowns.
Photo courtesy Winchester
