Winchester’s sales grew 93.8 percent in the third quarter to $400.0 million compared to $206.4 million in the year-ago third quarter, according to its parent, Olin Corp.
Third-quarter 2021 segment earnings in the Winchester segment were $115.3 million compared to $21.0 million in the third quarter 2020. The increase in third-quarter sales and segment earnings was primarily due to higher commercial and military sales, which included ammunition produced at Lake City, and higher commercial ammunition pricing. The segment earnings were also impacted by higher commodity and other materials costs. Winchester’s third-quarter 2021 results included depreciation and amortization expense of $5.7 million compared to $5.0 million in the third quarter of 2020.
Companywide, Olin’s third-quarter 2021 reported net income was $390.7 million, or $2.38 per diluted share, which compares to third quarter 2020 reported net loss of $736.8 million, or $4.67 per diluted share. Third-quarter 2021 adjusted EBITDA of $707.0 million excludes depreciation and amortization expense of $145.2 million and restructuring charges of $3.6 million. Third-quarter 2020 adjusted EBITDA was $195.5 million. Sales in the third quarter of 2021 were $2,340.1 million compared to $1,437.6 million in the third quarter of 2020.
Olin’s two other segments include Chlor Alkali Products/Vinyls and Epoxy.
Scott Sutton, chairman, president and CEO, said, “Solid quarterly adjusted EBITDA was achieved despite production interruptions from hurricanes, raw material cost volatility, and supply-chain disruptions. Our third-quarter performance continues to demonstrate the resilience of our unique winning model that adapts in real-time to prioritize ‘value first’ amid a backdrop of improving structural fundamentals. Olin drove sequential pricing improvement in the third quarter 2021 for chlorine, chlorine derivatives, including epoxy resins, and caustic soda.
“We expect Chlor Alkali Products and Vinyls fourth quarter segment results to increase sequentially, while the Epoxy and Winchester segment fourth-quarter results are expected to seasonally decline from third quarter 2021 levels. Overall, we also expect fourth-quarter 2021 adjusted EBITDA to be comparable to or slightly lower than third quarter 2021 levels.”
