Olin Corporation reported a $5.9 million second quarter loss this week as the manufacturer of Winchester Ammunition looks positively toward the rest of the year.
President and CEO John E. Fischer said Monday he expects second half 2017 adjusted profit will be “significantly higher” as it will “benefit from reduced maintenance turnaround activity compared to the first half levels.”
Sales for Winchester ammo dipped 15 percent to $169.4 million as demand slumped, according to Olin’s press release.
“Winchester second quarter 2017 segment earnings of $19 million were below our expectation due to a less favorable sales product mix and lower commercial sales volumes,” Fischer said. “In second half 2017, we expect Winchester will benefit from the seasonally strong third quarter commercial ammunition demand and an expected improvement in military sales.”
Olin produced a similar forecast in May, saying the election left the company with a lot of extra inventory to unload.
“So as we get further out into the year, the comparables get much easier for Winchester on the commercial side,” he said during a May phone call with investors. “What we did say, we expect commercial demand to continue to be weak in Q2.”
Olin also manufactures and distributes chemicals including chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach and hydrochloric acid. Second quarter chemical combined sales topped $1.3 billion.