Gun Reports - News
Winchester Ammo Sales Up 8.7%
February 6, 2012Printer Friendly | Email |
(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.
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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. An Important Note for GunReports.Com Readers: Our goal on this website is to foster a free expression of views while reining in language that crosses the line of civil discourse. Accordingly, the comments areas are intended to expand the knowledge of all users of this site. But site administrators wish to discourage the use of profanity, insults, disrespect, the advocacy of lawlessness, violence or sedition, or attempts to impinge on the rights of others. While GunReports.Com encourages robust discourse that furthers our understanding of all the issues affecting gun owners, comments that break GunReports.Com’s rules will be removed. In addition, we reserve the right to edit or delete individual comments, and in extreme cases, to ban commenters at our discretion. --Tim Cole To post a comment you must be a registered user of gunreports.com and be logged in. Use one of the forms below to login or register for FREE to gunreports.com
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