STURM, RUGER & CO., INC. REPORTS FIRST
Sturm, Ruger & Co., Inc. (NYSE-RGR), today reported first quarter 2002 net sales of $48.4 million compared to $43.9 million in the first quarter of 2001, and net income of $4.5 million or $0.17 per share compared to $4.1 million or $0.15 per share in the first quarter of 2001.
Chairman William B. Ruger, Jr. commented on the firearms results, “After a challenging year, the first quarter of 2002 offers encouragement as total firearms shipments improved 22% from the prior year. Shipments of certain models of our .22 caliber rifles and total pistol shipments increased from the prior year by over 90% and 50%, respectively. The new product offerings introduced at our February 2002 industry show, most notably the new Ruger 77/17 Bolt-Action Rifle chambered for the exciting new high velocity .17 HMR cartridge, have also been received with enthusiastic demand.”
The Company’s string of victories in the courtroom continued during the first quarter. On January 11, the U.S. Third Circuit Court of Appeals affirmed the District Court’s order granting dismissal of all claims in the Philadelphia city case and affirmed its prior ruling dismissing the Camden County case. The Georgia Appellate Court dismissed the Atlanta suit on February 13. On March 28, the city of Boston’s lawsuit was voluntarily dismissed with prejudice following a lengthy discovery phase. Senior Executive Vice President and General Counsel Stephen L. Sanetti expounded on the Boston dismissal, “Boston is the first city to voluntarily drop its case. It is important to note that Boston’s action was unilateral: no concessions were made by the Company. We again respectfully invite those few remaining municipalities who have filed similarly misguided lawsuits to likewise reconsider their continuing waste of taxpayer resources, and to voluntarily withdraw their cases.”
Mr. Ruger remarked on the investment castings business, “Our castings sales decreased 29% from the first quarter of 2001. I am, however, encouraged by the 14% increase in castings sales from the fourth quarter of 2001. There is still much work to be done to bring castings sales back up to parity with the firearms segment, which has experienced robust growth for two consecutive quarters.
“To regain the level of sales and profitability that we realized in both investment castings and firearms in 1999, we must continue to parlay our financial strength and technological expertise into innovative and profitable new products and business ventures.”
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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