Olin: Raising prices on Winchester came with 'limited success'

Ammunition is seen for sale on the shelf at the National Armory gun store in Pompano Beach, Florida. (Photo: Joe Raedle/Getty Images)

Top executives at Olin said raising prices on Winchester Ammunition only drew “limited success” for the company’s bottom line.

Chief Executive Officer John Fischer told investors Wednesday higher material costs drove up prices in the company’s second quarter. Although 2018 numbers reflect better demand over last year, he said, commercial ammo sales still declined 8 percent.

“Throughout the first half of 2018, our efforts to recover higher commodity metal prices through higher selling prices have met with limited success,” he said.

Olin — a prominent chemical manufacturer — reported a 2 percent decline in the ammunition line’s overall sales, totaling $165.9 million through June 30. In 2017, Olin watched Winchester sales plummet 15 percent — a lingering side effect of the presidential election.

Still, Fischer said, increased demand from military customers and a recovering market creates a positive outlook for Winchester moving forward — so long as the company reigns in operating costs.

“We do think if you look back historically, commercial volumes tend to decline somewhere around six consecutive quarters off of a peak. The second quarter of this year would have been the sixth quarter,” he said. “So, we have expectations that commercial volumes will stabilize here.”

Sales in Olin’s other categories — including chlorine and caustic soda, vinyls, epoxies, chlorinated organics, bleach and hydrochloric acid — topped $1.7 billion, a 13 percent increase over 2017.

Latest Reviews

  • Tuck & Carry: CCW in a Skirt

    Aimed at those who want the comfort and convenience of a skirt but with the protection of a holstered gun, the Tuck & Carry occupies what I term apparel holsters -- that is clothing/holster duos.

    Read More
  • The Marlin Dark in .45-70 is Stealthy and Modern

    Flash forward the lever gun of Western lore to the 2020s, where Marlin has taken that classic design and given it a modern upgrade. Meet the Marlin Dark.

    Read More
  • Gear Review: Sig Sauer Tango 6T 1-6

    Sig Sauer has long been a big name in the firearms industry, so it came as no surprise several years ago when Sig filled out its repertoire with its own optics line. Today, we’re looking at the Tango 6T, a 1-6 low power variable optic.

    Read More
  • First Look: Hornady 6mm ARC

    Hornady brought another impressive project to the shooting public in 2020 with the introduction of the 6mm Advanced Rifle Cartridge.

    Read More

Loading