Clearly, the strategic initiatives we've undertaken to restructure and reengineer our company to make us more focused and more innovative are bearing fruit. Chlor-alkali profitability was ahead of 1995, due mainly to higher sales volumes. To meet these increasing requirements, Olin microelectronic materials opened a new 200,000 square foot semiconductor chemicals manufacturing and distribution center in Mesa, AZ, in February, 1996. After two years of record demand the industry is returning to more normal levels. Olin operating profits, which were at record levels last year, were impacted in the current quarter by weaker demand for tube and fabricated products and from our automotive customers.
Work is underway to modernize seamless copper alloy tube production at the Indianapolis plant.
This project, which is expected to be on-stream in the second half of this year, should increase capacity and improve product quality while sharply cutting manufacturing costs. Winchester's results were behind the first quarter of 1995 due to higher raw material costs and lower sales as major customers delayed purchasing decisions. Aerospace profitability improved due to fee income. During the quarter the company completed the sale of its corporate headquarters. All Rights Reserved.