Sturm, Ruger reported that sales jumped 54% to $ 200.1 million in the second quarter, ending July 3, from the previous year’s quarter. Sturm, Ruger, who has no debt, also reported that quarterly net profit more than doubled to $ 44 million, compared to the quarter last year.
CEO Christopher Killoy said in a webcast with analysts that this was the seventh quarterly increase in production for the company, based in Southport, Connecticut, with factories and other facilities in the New Hampshire, Arizona, North Carolina and Missouri. He said the company had added 400 workers since March 2020, for a total of 1,900 employees. He said employees were receiving bonuses of $ 200 for getting vaccinated against the coronavirus.
“Each of our establishments has an aide who wanted to disconnect,” he said.
Americans are buying guns to defend themselves in an increasingly frightening country. Gun sales have increased and people are piling up fearing increased crime, political unrest and civil unrest as the coronavirus pandemic continues to ravage the population and the economy. Many gun buyers also believe President Joseph Biden, a Democrat, will be successful in his plans for more restrictive gun control measures.
The leading US arms maker Smith & Wesson has also posted record sales since the start of the coronavirus pandemic. Earlier this summer, Smith & Wesson reported that fiscal sales ending in May had doubled to $ 1.1 billion from the previous year. The company said it has paid off its debts, with profit reaching $ 252.04 million.
Sturm, Ruger manufactures a variety of firearms, including semi-automatic pistols, revolvers, bolt-action rifles, and AR-15s. Sturm, Ruger also manufactures the LCP line of compact semi-automatic pistols that can be carried and concealed for self-defense. Killoy said the company launched its new pistol in June: the Ruger LCP MAX, a .380 semi-automatic pistol. This follows the launch of the MAX-9 line of pistols earlier this year.
Hillary Dube, owner of HNR Gunworks in Inverness, Fla., Told Forbes that the Ruger LCP MAX .380 is “a good first pistol for new gun owners who are learning and wanting to acquire a transport pistol first, before a good long-range pistol. it is more precise.
She said it’s popular with consumers, in part because it has a 12-round magazine, despite its small size.
“It’s lightweight and it’s great to see so many large guns to eliminate the need to carry extra magazines,” she said.
Dube said other popular brands of compact handguns include the Ruger SR22, Smith & Wesson EZ9, Sig Sauer P365 and Springfield Armory’s Hellcat micro-compact handguns, which despite their small size can be loaded with 14 cartridges.
Magazines with a capacity of more than 10 rounds are considered high capacity in many states, including New York, Massachusetts, and California, which do not allow this. Biden plans to crack down on high capacity magazines, which have been used in many mass shootings, as well as assault rifles, including AR-15s produced by Sturm, Ruger.
The AR-15 is a military style rifle used by the US military. Sturm, Ruger, and other gunmakers like Smith & Wesson produce semi-automatic versions of AR-15s that are considered assault weapons by federal regulators and gun control advocates. Modern sporting rifles are preferred by gun manufacturers and retailers.
Assault weapons have been used in many mass shootings. Sturm, Ruger manufactures the AR-556 line of AR-15s which were used in mass shootings in a Kroger
According to the Gun Violence Archive, 26,411 people have been killed by guns in the United States so far this year, including 410 in mass shootings. Other causes of death include homicides, suicides, accidents and shootings in self-defense.
Biden, who owns firearms, planned to ban the sale of assault weapons to civilians and require existing owners to register them with the National Firearms Act, which requires verification of history of several months and a fee of $ 200. But Biden has a good chance of getting a gun control bill through a divided Congress.
Biden released two executive actions for gun control measures in March, shortly after a spate of mass shootings, including that of the Kroger store in Colorado. Biden gave the order to ban arm stabilizers, like the one used with an AR-556 assault pistol in the Colorado shooting. Biden has also issued orders to require background checks for the do-it-yourself ghost weapon kits.
Even though Sturm, Ruger manufactures assault weapons, the company’s products are diverse enough to overcome increased gun control measures, according to Aegis Capital analyst Rommel Dionisio.
Dionisio said in a note to investors that Sturm’s product line, Ruger, includes bolt-action rifles, revolvers and target pistols “more associated with hunting and target shooting rather than shooting. ‘self-defense or personal protection’. He said the mix “could provide the company with some cushion in the future when the gun industry finally experiences an inevitable cyclical downturn.”
The Federal Bureau of Investigation reported that background checks, which are in part based on gun sales, eased in June and July. Granted, the numbers are still strong historically, but it raises questions about continued demand.
“Recent monthly background check trends seem to indicate that market demand may start to peak,” Dionisio said. “Therefore, we cautiously forecast a slight decline in aggregate consumer demand in 2022 from current historical peaks. “