Ruger Puts Gun Sales on Hold
One of the most popular firearms manufacturers is in a little jam right now. It appears that you just cannot have enough of a good thing.
(photo from Ruger)
Ruger issued the following press release this week:
"Sturm, Ruger & Company, Inc. Reports Strong First Quarter Bookings
March 21, 2012
Sturm, Ruger & Company, Inc. (NYSE: RGR), announced today that for the first quarter 2012, the Company has received orders for more than one million units. Therefore, the Company has temporarily suspended the acceptance of new orders.
Chief Executive Officer Michael O. Fifer made the following comments:
The Company's Retailer Programs that were offered from January 1, 2012 through February 29, 2012 were very successful and generated significant orders from retailers to independent wholesale distributors for Ruger firearms.
Year-to-date, the independent wholesale distributors placed orders with the Company for more than one million Ruger firearms.
Despite the Company's continuing successful efforts to increase production rates, the incoming order rate exceeds our capacity to rapidly fulfill these orders. Consequently, the Company has temporarily suspended the acceptance of new orders.
The Company expects to resume the normal acceptance of orders by the end of May 2012.
The Company will announce its results and file its Quarterly Report on Form 10-Q for the first quarter of 2012 on Tuesday, May 1, 2012, after the close of the stock market."
Sturm, Ruger & Co., Inc. opened for business in Southport, Connecticut in 1949 with a $50,000 investment. The company's name comes from founders inventor William Batterman Ruger and children's author Alexander McCormick Sturm. Ruger's original heraldic eagle was in Red for the first several years of the company's operation. After Sturm's early death at the age of 28, his friend and partner Bill Ruger changed the eagle to black in mourning.
Powered by its Ruger Standard 22 pistols and later by its Mini-14, 10-22, and M77 rifles, Security Six, GP100 and P-series pistols, they have been publically traded since 1969 and was put on the New York Stock Exchange under the symbol RGR in 1990. Their public stock is up a whopping 571% from November 07 while the Standard and Poor's 500 overall is down 3%. They are now the 4th Largest US gun maker behind Remington, OF Mossberg, and Smith and Wesson (in that order). It should be realised that Remington in 2006 sold around 600,000 firearms...with Ruger reporting orders for a million, it will be interesting to see who holds the Number 1 title next year.
Besides their headquarters in Southport, they have factories in Newport, New Hampshire and Prescott, Arizona.
After the announcement about putting their sales on hold so that these factories could catch up, Ruger's stock rose another 9%
I bet old Bill Ruger and Sandy Sturm are smiling wherever they are.