April 28, 2009 - 9:56 PMBy DENNIS GRUBAUGHThe TelegraphCLAYTON, Mo. - A run on ammunition helped trigger record quarterly earnings for its Winchester Division in East Alton, Olin Corp. said Tuesday.Olin's overall first-quarter 2009 net income was $46.7 million, or 60 cents per share, which compares to $37.3 million, or 50 cents per share, in the first quarter of 2008. Sales in the first quarter of 2009 were $400.6 million, compared to $399.1 million in the first quarter of 2008.Winchester first-quarter 2009 sales were $132.9 million, compared to $110.8 million in the first quarter of 2008."Winchester achieved the highest level of quarterly earnings in its history, reflecting the continuation of the stronger-than-normal demand that began in the fourth quarter of 2008," Joseph D. Rupp, chairman, president and chief executive officer, said in a conference call with investors.Rupp said the Winchester surge began "around the November presidential election." That comment would seem to support a growing theory among retailers that recent ammunition shortages are, in part, a reaction to whether the Obama administration would attempt to enact stricter gun control laws. Retailers around the country have reported ammo shortages going back months.Rupp said the backlog on commercial orders for the first quarter of 2009 is more than four times what it was in the first quarter of 2008. There also is a growing backlog on government and law enforcement orders.Closer to home, retailers have told The Telegraph that they cannot keep Winchester ammunition in stock.During his call with investors, Rupp made no comment on the reasons for the run, other than the timing."How long can this (surge) last? The honest answer is we don't know," he said. The last such surge was in the 1990s, and the boom lasted six quarters."We're now into the third quarter of this," he said. Unit shipments were up 21 percent for the quarter.Winchester's increase reflects higher sales volumes. Commercial, law enforcement and domestic military sales all increased during the quarter, which more than offset a decline in industrial sales. Winchester's first-quarter 2009 segment income was $17 million, compared to $10 million in the first quarter of 2008. The increase in segment income reflects the higher sales volumes and favorable pricing, Rupp said.The Winchester increase has been across all segments of its business, commercial, military and law enforcement, and involving ammunition components of each - rifle, pistol and rimfire.Ammunition sales routinely decline in the second quarter, which is non-hunting season, he said.The positive news was not enough to buoy Olin's stock, which was down on the day by $1.41 a share to $12.96, a drop of 9.81 percent.Last Thursday, Olin's board declared a dividend of 20 cents on each share of Olin common stock. The dividend is payable on June 10 to shareholders of record at the close of business on May 11. It was the 330th consecutive quarterly dividend to be paid by the company.
Windfall profits!!!!!!!!!!!!!!!!!!!!!! Tax 'em!(If I have to put a sarcasm tag, you don't know me very well )
I've never thought about that...... and I am guessing the Dems have not either!
Aiding and abetting the enemy boys? Shhhhhhhh......Be quiet, vawwwy, vawwy quiet...we don't want to let them know we know about their agenda......
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