Olin Corp. reported Winchester sales for the third quarter 2019 were $188.7 million compared to $174.0 million in the third quarter 2018, a gain of 8.4 percent.
The increase in sales was primarily due to higher commercial sales. Third quarter 2019 segment earnings were $13.9 million compared to $10.3 million in the third quarter 2018, a gain of 35.0 percent. The increase in segment earnings was primarily due to higher commercial ammunition volumes and lower commodity and other material costs, partially offset by lower selling prices. Winchester third quarter 2019 results included depreciation and amortization expense of $5.2 million compared to $4.9 million in the third quarter 2018.
In the nine months, sales of Winchester were flat at $510.8 million against $510.8 million a year ago. Operating profits eased to $33.1 million from $34.1 million.
John E. Fischer, Olin’s chairman, president and CEO, said in a statement, “The previously disclosed award by the U.S. Army to Olin’s Winchester business to operate the government-owned Lake City ammunition facility in Independence, Missouri is a significant event for Winchester. We expect this multi-year contract to increase Winchester’s annual revenue by approximately $450 million to $550 million with a corresponding improvement in adjusted EBITDA of approximately $40 million to $50 million annually. The contract becomes effective in the fourth quarter of next year.”
