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Winchester Ammo Sales Up 8.7%

February 6, 2012

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(GunReports.com) -- Olin Corp. (NYSE:OLN), makers of Winchester ammunition, reported that fourth quarter Winchester division sales were up 8.7 percent compared to the same period last year.

Segment earnings were $500,000, down from $3.6 million in the fourth quarter of 2010.

The company said the decline in segment earnings reflects the impact of a less favorable product mix, higher commodity metal costs, higher manufacturing costs and costs associated with the relocation of the centerfire operations to Oxford, Miss., partially offset by higher selling prices.

Read more here.

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Reader Comments

Huh?

Sales on ammo are up, but earnings from those sales are down, due to some accounting um, variables. "The company" refers to Olin, who owns Winchester apparently. "...less favorable product mix" probably means they're not competing successfully in popular calibers, "higher costs" is obvious in meaning, and moving centerfire ops to Mississippi cost them a bundle and higher prices didn't recover all of that yet.

Much of the "bargain" ammo you find is Winchester. I'm told that they do exclusive runs for Walmart and Cabela's who often sell at ridiculously low prices that are often lower than what the local gun shops pay the distributors. I wonder how much of that practice is hurting their profit.

Of course, part of the "Wall Street game" is to obfuscate less than positive information in order to keep investors piqued. I'd never make it as a CEO, because I would tell the quarter-to-quarter get rich quick die hards to pound sand and make their investments based on long term viability. Winchester's profit may be down for the last quarter, but their sales are up, which means a lot of shooters are using the product and like it. Given the amount of 9mm and 5.56 people are buying at very low prices, I'm not surprised. The margins are really low on those calibers.


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