Winchester sales for the second quarter were $439.9 million compared to $404.0 million in the second quarter of 2021, a gain of 8.8 percent, according to Olin Corp.
Olin said the increase in Winchester sales was primarily due to higher commercial ammunition pricing. Second quarter 2022 segment earnings were $119.3 million compared to $109.9 million in the second quarter of 2021. The $9.4 million increase in segment earnings was primarily due to higher commercial ammunition pricing, partially offset by higher commodity and other materials costs. Winchester’s second quarter 2022 results included depreciation and amortization expense of $5.9 million compared to $5.5 million in the second quarter of 2021.
Overall, Olin reported second quarter of 2022 reported net income was $422.1 million, or $2.76 per diluted share, which compares to the second quarter of 2021 reported net income of $355.8 million, or $2.17 per diluted share. Second quarter 2022 adjusted EBITDA of $727.3 million excludes depreciation and amortization expense of $148.8 million and restructuring charges of $3.6 million. The second quarter of 2021 adjusted EBITDA was $559.2 million. Sales in the second quarter of 2022 were $2,616.1 million compared to $2,221.3 million in the second quarter of 2021.
Olin also operates Chlor Alkali Products, a Vinyls segment and an Epoxy segment.
Scott Sutton, Olin’s Chairman, President, and CEO, said, “Our second quarter record adjusted EBITDA performance continued to prove how our model can adapt in real-time to emphasize ‘value first’ versus a volume maximization approach. Our Chemical businesses have been increasingly challenged by the weakening economic environment, particularly chlorine derivatives such as epoxy resin and ethylene dichloride. Our team reduced operating rates and increased product purchases, refraining from selling incremental volume into poor-quality markets.
“With a recessionary economic environment continuing to unfold in third quarter 2022, we look forward to demonstrating how our winning model should dampen the impact of deeply cyclical behaviors that have historically undermined our earnings. We expect our third quarter 2022 Chemicals businesses results to be lower than second quarter 2022 due to purposeful lower participation in chlorine derivative markets and operating at lower rates combined with sequentially higher raw material and operating costs, mainly increased natural gas and electrical power costs. We expect Winchester’s third-quarter results to be lower than the second quarter 2022 levels because of higher commodity and other materials costs. Overall, we expect Olin’s third quarter 2022 adjusted EBITDA to decline approximately 15 percent from second quarter 2022 levels.
“During the first half of 2022, we repurchased approximately 8 percent of shares outstanding for $689.7 million from cash flow while maintaining our net debt levels. Additionally, the new $2 billion share repurchase program reflects our Board of Directors’ confidence in Olin’s future earnings and cash flow generation. With our solid balance sheet and strong cash flow, we are well positioned to execute on this attractive opportunity to invest in Olin.”
