U.S. Army Aims To Close $90 Million Ammo Deal With Winchester AmmunitionScreen Shot 2017-02-02 at 4.12.30 PM
The United States Army is about to embark on a $90 million deal with Winchester Ammunition. Late last week, the Defense Department announced that they were in contract with the Olin Corporation, Winchester’s parent company, to supply small caliber ammunition cartridges, including 5.56 mm, 7.62 mm, .50 caliber and small caliber ammo cartridges until July 31, 2018. The Army will use the cartridges for weapons such as the M16 and M4 both chambered in 5.56 as well as the M240B machine gun chambered in 7.62.
On Tuesday, the fourth quarter earnings were released by Olin Corp, and with the news of the company having $161.4 million in earning, sales spiked 11% the following day. Calling it a “normal seasonal pattern,” the company was not alarmed that the numbers showed a 20 percent slip from last quarter. Winchester Ammunition reported a total $729.3 million in revenue in 2016, which was a 3 percent increase over earnings in 2015.