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NH – INDUSTRY INSIDER – Demand for guns outpaces Sturm Ruger’s production

An unprecedented run on guns — partly due to Covid-19 — is so strong, that Sturm Ruger and Company can’t produce them fast enough, again partly due to Covid-19. “The incredible surge in demand outstripped our production capacity, ” said CEO Christopher Killoy, in an earnings call on Thursday. In his 30 years in the industry, “This is probably the strongest level of demand that I’ve seen,” including the surge preceding the assault weapons ban. The company, headquartered in Connecticut but with a major facility in Newport, NH, reported second quarter sales are $130 million, up by more than a quarter, with a net income of $18.6 million, a $1.05 a diluted share – triple the profits from the same quarter last year. But that was limited by production capacity. The number of units ordered nearly doubled in the first quarter and nearly tripled in the second. The thirst for firearms – despite the recent bankruptcy of Ruger’s rival Remington Arms Company (for the second time within a year) – is industry wide. Background checks are up 65% for the half, and 92% for the second quarter.  Ruger’s comparable increase (the estimate unit sell though) was a mere 47%. As a result, the inventories at Ruger and other brands “was largely depleted in the second quarter and remains at very low levels.” Killoy  attributed the “staggering increase” for “personal protection and home defense stemming from continuing Covid-19 pandemic; protests, demonstrations and civil unrest in many cities throughout the United States and lastly, the call by some for the reduction in funding and authority of various law enforcement organizations.” But that “lastly” was premature, because Killoy added another Covid-related reason when he asked about hunting sales, which also experienced a sharp increase in demand.  [full article]

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