STURM, RUGER & CO., INC. REPORTS INCREASED
SECOND QUARTER EARNINGS
Sturm, Ruger & Co., Inc. (NYSE-RGR), today reported second quarter net sales of $39.8 million compared to $37.7 million in the second quarter of 2001. Net income for the quarter ended June 30, 2002 totaled $2.9 million or $0.11 per share versus $1.8 million or $0.07 per share in the comparable quarter of 2001.
For the six months ended June 30, 2002, net sales were $88.2 million and net income was $7.4 million or $0.28 per share. For the corresponding period in 2001, net sales were $81.5 million and net income was $5.9 million or $0.22 per share.
Chairman William B. Ruger, Jr. commented on the firearms results, “Firearm shipments increased 17% in the second quarter, the fourth consecutive quarter that we experienced firearm sales growth. Shipments of some of our “classic” 10/22 rifles, rimfire pistols, and single-action revolvers increased significantly. The new 2002 product offerings, most notably the new Ruger 77/17 Bolt-Action Rifle chambered for the exciting new high velocity .17 HMR cartridge, continue to flourish.”
Mr. Ruger remarked on the investment castings business, “Our castings sales decreased 22% from the second quarter of 2001 and 25% from the first half of 2001. However, the 11% increase in castings sales from the first quarter of 2002 is one indication that progress is being made to revive this segment which is currently under-performing.”
In litigation, the second quarter showed continued progress. Philadelphia did not attempt to further appeal the dismissal of its municipal lawsuit, which brings this matter to a long-awaited end. A number of “absolute liability” individual plaintiff’s cases were dismissed in New York, the highest court in Maryland rejected a request for rehearing its dismissal of the Halliday case, and the similar Price case was dismissed. Unfortunately, the dismissal of the Cincinnati municipal lawsuit, which had been sustained on appeal, was reversed by the Ohio Supreme Court on June 12, 2002, by a 4-3 vote on straight ideological lines and sent back to the trial court for additional proceedings.
Stephen L. Sanetti, Vice Chairman, Senior Executive Vice President and General Counsel, commented on these recent developments, “We have long known that these ill-conceived municipal lawsuits are more about politics and social agendas than the law, which uniformly supports the common-sense view of the vast majority of Americans who believe in personal responsibility, and rejects the notion that manufacturers of lawfully-sold, non-defective products should be liable for subsequent criminal misuse over which the manufacturers have no control.”
Erle G. Blanchard, Vice Chairman, President and Chief Operating Officer, honored the memory of Company Founder and Chairman Emeritus William B. Ruger, “On July 6, 2002, the Company, the firearms industry and the country lost a passionate champion and visionary with the passing of Bill Ruger. Our employees are determined to continue the tradition of hard work and excellence that Mr. Ruger exemplified during his active life with the Company. The continued success of this Company, its products, and the preservation of the rights of law-abiding citizens to keep and bear arms will be his legacy.”
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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