Sturm, Ruger, and Co., a Connecticut based business with a large facility in Newport, have announced record earnings amid the COVID-19 pandemic, reports the Sentinel Source.
In the second quarter, sales jumped $130 million, leading to a net income of $18.6 million. Reportedly, these profits triple those from the same quarter last year. “This is probably the strongest level of demand I’ve seen,” stated CEO Christopher Killoy, who has been in the firearm business for 30 years.
Killoy attributed the increase in demand and profits to, “personal protection and home defense stemming from continuing COVID-19 pandemic; protests, demonstrations and civil unrest in many cities throughout the United States; and lastly, the call by some for the reduction in funding and authority of various law enforcement organizations.” A stronger interest in hunting due to COVID-19 closing many entertainment and recreation facilities was also deemed a factor.
The company managed to record these profits even though production could not meet demand. While production of units was higher in the second quarter than the first, the number of orders tripled, leading to a backlog of 767,000 guns. This number is six times larger than this time last year.
The company will be putting the record profits towards capital improvements, and a special $5 dividend.
WNTK Local News 