by Joseph P. Tartaro | Executive Editor
Some in the anti-gun community have been making claims that the firearms industry’s recent huge successes are a thing of the past, but financial statements issued by a number of firms seem to belie their interpretations of the data.
Apparently, the “Obama effect” may be waning but so many people, especially younger people, have become part of the new Gun culture that industry prospects are still quite bright. Yes, the ammunition manufacturers are beginning to catch up some, but no one has been reporting any overstocked shelves, either for ammo are any of the popular firearms models.
Sturm, Ruger & Co. reaported that sales were up 40% in 2013 compared to 2012. Earnings increased 55%.
The company announced that for 2013 the company reported net sales of $688.3 million and fully diluted earnings of $5.58 per share, compared with net sales of $491.8 million and fully diluted earnings of $3.60 per share in 2012.
For the fourth quarter of 2013, net sales were $181.9 million and fully diluted earnings were $1.33 per share.
For the corresponding period in 2012, net sales were $141.8 million and fully diluted earnings were $1.00 per share.
Ruger CEO Michael O. Fifer also made the following observations related to the Company’s results: “New product introductions were a significant component of our sales growth as new product sales represented $195.8 million or 29% of firearm sales in 2013. New product introductions in 2013 included the LC380 pistol, the SR45 pistol, the Ruger American Rimfire rifle, the SR- 762 rifle, and the Red Label II shotgun.
“Demand for our products outpaced the growth in industry demand as measured by the National Instant Criminal Background Check System (“NICS”) background checks (as adjusted by the National Shooting Sports Foundation) for 2013.
“During the fourth quarter of 2013, we began to manufacture a limited quantity of rifles at our 220,000 square foot facility in Mayodan, NC, that we acquired in September of 2013. Firearm production at the Mayodan facility is expected to increase during 2014.”
And Smith & Wesson again topped Wall Street expectations, with third-quarter sales up 7.1% compared to the same period a year ago. Profit for the quarter jumped 43%.
“We maintained our focus on increasing market share of our Smith & Wesson M&P polymer pistol family of products and thereby delivered handgun revenue growth of nearly 30%, a solid result when we consider that the year-ago quarter reflected a surge in consumer demand,” said Smith & Wesson President and CEO James Debney. Smith & Wesson’s results beat Wall Street expectations for the fifth-straight quarter.
FNH USA, LLC announced in early March that FN Manufacturing, LLC in Columbia, SC, has received a new, three year, $7.6 million indefinite delivery/indefinite quantity (IDIQ) contract from the Defense Logistics Agency to build MK 19 spare receivers for the US Army. This award is in addition to the $27 million contract the company currently has from the US Army Contracting Command (ACC) to produce MK 19 grenade machineguns through August 2015.
“We are pleased that FN Manufacturing has been selected to produce the MK 19 spare receivers,” said Mark Cherpes, FNH USA president and CEO. “Since its founding in 1989, FN Manufacturing has proudly built a variety of military firearms for all branches of the US military including iconic products such as the M240, M249, M4 and M16 rifles. We are extremely proud of the high-quality and reliable firearms we build for our service men and women and look forward to continuing this tradition in the years to come.”
As further evidence of a healthy marketplace for firearms and related products, the National Shooting Sports Association’s (NSSF) adjusted National Instant Criminal Background Check System (NICS) background checks for February 2014 were the third highest for the winter month ever.
The February 2014 NSSF-adjusted figure of 1,264,010 of NICS checks is the third highest February on record for the system, even with a decrease of 22.7% compared to the February 2013 NSSF-adjusted NICS figure of 1,634,309. February 2014 figures are a virtual tie with 2012 for the second highest on record for the month.
For comparison, the unadjusted February 2014 NICS figure of 2,073,978 reflects a 9.8% decrease from the unadjusted NICS figure, NSSF said.
Effective March 17, Bruce Pettet became CEO and president of Leupold & Stevens Inc., the sports optics manufacturer based in Beaverton, OR.
A proven brand-builder, Pettet brings a wealth of experience and a track record of success in marketing products and brands to a wide consumer audience.
And in other executive changes, Michael Birch has been hired as Action Target Inc.’s new CEO. He has served as vice president and general manager of Boart Longyear, the world’s largest mineral-exploration drilling company, and Black & Decker, where he had various sales and marketing leadership roles.
Action Target is a world leader in the field of shooting range technology.
