STURM, RUGER & CO., INC. REPORTS THIRD
Sturm, Ruger & Co., Inc. (NYSE-RGR), the nation’s largest producer of firearms, today reported third quarter net sales of $41.1 million compared to $43.0 million in the third quarter of 2000. Net income for the quarter ended September 30, 2001 totaled $2.7 million or $0.10 per share versus $4.6 million or $0.17 per share in the comparable quarter of 2000.
For the nine months ended September 30, 2001, net sales were $122.7 million and net income was $8.6 million or $0.32 per share. For the corresponding period in 2000, net sales were $151.9 million and net income was $19.6 million or $0.73 per share.
Chairman William B. Ruger, Jr. was enthused about the results of the firearms business, “After enduring a period of subdued demand in the overall firearms market, I am pleased to report a 13% increase in firearms shipments this quarter caused by heightened demand for our rifles, revolvers, and pistols. This resurgence was experienced by our “classic” models as well as our new offerings for 2001, including the Ruger Super Redhawk Revolver chambered for the new .480 Ruger cartridge, and the Ruger Compact M77 Mark II hunting rifle. In addition, a sales incentive program which began in August enhanced sales for our pistols.”
Commenting on the castings segment, Mr. Ruger continued, “Unfortunately, the investment castings segment continues to suffer from sluggish economic conditions as sales declined by 39% and 26% for the third quarter and nine months ended September 30, 2001, respectively. Returning to normal levels of profitability for this segment is one of management’s primary initiatives. Toward that end, we have recently hired an experienced new Director of Sales and Marketing for our Investment Castings Division, who will have our full support.”
The Company’s success in the courtroom continues. On August 15, the Supreme Court of the State of New York dismissed all claims against the Company and all other firearms manufacturers in the New York State lawsuit. On October 1, the Connecticut Supreme Court unanimously affirmed the earlier dismissal of the Bridgeport (CT) lawsuit against the Company and other firearms manufacturers. On October 9, the U.S. Supreme Court declined to hear an appeal of the New Orleans (LA) case which had been previously dismissed by the Louisiana Supreme Court in April. For the fifth consecutive quarter, the Company was not served with any additional municipal lawsuits, and both intentional and accidental misuses of firearms continue to decrease.
Senior Executive Vice President and General Counsel Stephen L. Sanetti remarked on the Company’s continuing success, “Recent events reinforce our steadfast assertion that these politically-motivated municipal lawsuits are both ill-founded and legally baseless. We respectfully submit that our cities should not spend one more minute or one more dime of taxpayer money wrongly attacking those companies which have proudly armed our police, military, and law-abiding citizens with high quality products. In light of the events of September 11, we again stand ready to assist our nation as the great arsenal of democracy.”
Ruger was founded in 1949. Since 1950 it has never failed to show an annual profit and has never required financing from outside sources. The Company’s business segments are engaged in the manufacture of the world famous RUGER‚ brand of sporting and law enforcement firearms and titanium and steel investment castings for a wide variety of customers and end uses. Plants are located in Newport, New Hampshire and Prescott, Arizona. Corporate headquarters is located in Southport, Connecticut.
The Company may, from time to time, make forward-looking statements and projections concerning future expectations. Such statements are based on current expectations and are subject to certain qualifying risks and uncertainties, such as market demand, sales levels of firearms, anticipated castings sales and earnings, the need for external financing for operations or capital expenditures, the results of pending litigation against the Company including lawsuits filed by mayors, attorneys general and other governmental entities and membership organizations, and the impact of future firearms control and environmental legislation, any one or more of which could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date such forward-looking statements are made or to reflect the occurrence of subsequent unanticipated events.
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