Gun Maker's Annual Earnings Skyrocket 77.7%

Gregory Gwyn-Williams, Jr.
By Gregory Gwyn-Williams, Jr. | February 27, 2013 | 5:36 PM EST

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.

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