Gun Maker's Annual Earnings Skyrocket 77.7%
Gun manufacturer, Sturm, Ruger & Co. Inc. released the company's 2012 annual report showing a 77.7 percent increase in earnings from the previous year.
According to the company's report:
"Consolidated net sales were $491.8 million in 2012. This represents an increase of $163.0 million or 49.6% from 2011 consolidated net sales of $328.8 million.
"Firearms segment net sales were $484.9 million in 2012. This represents an increase of $160.7 million or 49.7% from 2011 firearm net sales of $324.2 million. Firearms unit shipments increased 51.0% in 2012.
"The gross margin was 36.4% in 2012. This represents an increase from the 2011 gross margin of 34.0%."
Ruger CEO, Michael O. Fifer made the following observations:
- Our earnings increased 77% in 2012, driven by the 50% growth in sales and our ongoing focus on continuous improvement in our operations.
- New product introductions were a significant component of our sales growth as new product sales represented $182.0 million or 38% of firearm sales in 2012.
Since President Barack Obama was elected in 2008, the gun industry has seen a surge in business.
"Obama is the greatest gun salesman of all time. Every time he talks about guns, sales go through the roof," one gun dealer said,
Case in point: Ruger's stock, which trades on the New York Stock Exchange (TICKER: RGR), has increased 789% since President Barack Obama took office on January 20, 2009.