Olin Corporation reported Winchester sales for the fourth quarter 2016 were $161.4 million, up from $156.7 million in the same quarter a year ago.
Olin noted that sales were still down sales of $203.2 million in the third quarter 2016.
Fourth quarter 2016 segment earnings for its Winchester segment were $25.0 million, up from $21.8 million in the fourth quarter of 2015. Earnings for the segment were $36.0 million in the third quarter 2016.
Olin said Winchester’s fourth quarter 2016 segment earnings exceeded 2015 earnings due to higher sales volumes and lower operating costs. The decrease in sales and segment earnings versus the third quarter primarily reflects lower shipments to commercial customers reflecting a normal seasonal pattern. Winchester fourth and third quarter 2016 results both included depreciation and amortization expense of $4.7 million.
For the full year, Winchester sales reached $729.3, up from $711.4 million in 2015.
Looking ahead, Olin said regarding the Winchester segment, “We are cautious about the Winchester business, which may experience a year-over-year decline in segment earnings as a result of lower ammunition demand, driven by customer efforts to reduce inventory, and higher commodity and material costs.”
