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Sturm, Ruger & Company, Inc. (NYSE-RGR), today reported first quarter 2006 net sales of $47.4 million compared to $44.3 million in the first quarter of 2005, and net income of $1.4 million or $0.05 per share compared to $3.7 million or $0.14 per share in the first quarter of 2005.
Interim Chief Executive Officer Stephen L. Sanetti commented on the firearms results, "Firearm unit shipments increased 1% from the prior year as increased revolver and rifle shipments were offset by a reduction in pistol shipments. The reduction in pistol shipments is attributable to the shipment of 5,000 KP95D 9mm pistols to the U.S. Army Tank-automotive and Armaments Command in January 2005. Modest price increases and the modification of our sales discount programs resulted in the further increase in sales to 4%."
Mr. Sanetti elaborated on the castings results, "Our castings sales increased by 28% from the first quarter of 2005, but unfortunately, this segment of our business continues to operate at a loss. We will continue to evaluate the role that the castings business will play in our future."
The first quarter was a quiet one on the product liability front. The number of "conventional" product liability cases remains near a record low and industry safety and accident statistics continue to reaffirm the success of the many voluntary firearms safety programs.
Mr. Sanetti concluded his remarks, "During the past several months, the Company has begun to undergo significant changes, the results of which will culminate in the emergence of a leaner, more efficient and more profitable enterprise. There is still plenty of work to be done, and I am confident we are assembling the right team and heading in the right direction. I want to thank our shareholders for their patience and look forward to reporting our progress to you throughout 2006."
About Sturm, Ruger & Co., Inc.
Sturm, Ruger & Co., Inc. is one of the nation's leading manufacturers of rugged, reliable firearms for the commercial sporting market. With products made in America, Ruger offers consumers almost 800 variations of more than 40 product lines, across both the Ruger and Marlin brands. For more than 70 years, Ruger has been a model of corporate and community responsibility. Our motto, "Arms Makers for Responsible Citizens®," echoes our commitment to these principles as we work hard to deliver quality and innovative firearms.
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, the impact of future firearms control and environmental legislation, and accounting estimates, 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.
Sturm, Ruger & Co., Inc. “Arms Makers for Responsible Citizens®”