Gun Control Fears Push Sturm Ruger Sales to Record High
Barack Obama may be the best thing that ever happened to the firearm industry; Gunmaker Sturm Ruger & Co Inc (RGR.N) reported record quarterly sales after Obama stoked the fears of gun owners with his gun control push. Sturm Ruger & Co. is doing so well they’re looking to build a third factory.
The numbers tell the tale: Sturm Ruger’s share rose 8% in the first quarter; sales skyrocketed 39% compared to the first quarter of 2012; the company sold $155.9 million worth of stock in the first quarter.
And it wasn’t just Sturm Ruger; background checks for firearm sales, rose more than 28% year-on-year in March, as the FBI's National Instant Criminal Background Check System attested; in February, it soared 33 percent.
Backlog at the end of 2012 for Sturm Ruger totaled 1.5 million units, which meant the company worked at production capacity for nine months. Net income rose to $23.7 million, or $1.20 per share in the first quarter of 2013, compared to $15.5 million, or 79 cents per share, in 2012. The quarterly dividend rose from 21% to 49%.