Click here to download the catalog as a PDF file. To view this site you need Adobe Flash Player and your browser must allow javaScripts. Go here to get the latest Flash Player. Industry Faces Uncertain Economy, Election Results By Russ Thurman ompanies throughout the industry are bracing for an uncertain hunting and fall buying season in the face of the economic turmoil that rocked the financial markets in the U.S. and the world in October. This, combined with doubts surrounding the presidential election, has companies reducing their workforces and adjusting manufacturing goals and sales projections. Reports indicate that a number of firearm manufacturers have cut jobs. The challenges the industry is facing, while intensified by the Wall Street meltdown, are not a surprise to industry leaders. “I think it’s going to be a very challenging year in the domestic hunting and sports shooting market,” said Tommy Millner, Remington CEO, in June. While the hunting market will be hurt, Millner said, it would fare better than some other “consumer durables.” “Thank God our users are passionate about hunting; they’re not going to stop hunting. Might they hunt with last year’s rifle and not get a new one? That’s a possibility,” Millner said. The soft hunting market has taken its toll. On Sept. 25, a week before the Wall Street Meltdown of 2008, Smith & Wesson announced it eliminated 80 huntingrelated rifle-production jobs at its Rochester, N.H., facility. “As we have discussed over the past several months, economic conditions and their impact on consumer discretionary spending have negatively impacted the hunting-relat- C ed long-gun portion of our business,” said Michael Golden, president and CEO. “Until the market for these products strengthens, we remain focused on making sure that our factories operate efficiently.” The market’s downturn in hunting firearms altered the sales strategy at Red’s Trading Post in Twin Falls, Idaho. “We actually canceled a scheduled order of bolt-action rifles and shotguns because we were not getting much interest, and coupled with manufacturer’s price increases, we changed course,” said Ryan “We actually canceled a scheduled order of bolt-action rifles and shotguns because we were not getting much interest.” economic downturn during the year, as reflected in the number of background checks being conducted by NICS. For the first nine months of 2008, there was a 7.3-percent increase in background checks over the same record-setting months in 2007, according to NICS. From January through September, NICS conducted 8,444,569 background checks, an increase of 574,691 over the same period in 2007. Those increases are reflected in the business at H&H Gun Range in Oklahoma City, Okla. Owner Miles Hall said that as of early October, his sales were up “just shy of 50 percent over 2007. “In 2007, we were up 54 percent over 2006. The bulk of this increase is in new shooters. We have Ryan Horsely, Red’s Trading Post not yet seen the Obama effect on sales. Now that could hit just after the Horsley, marketing director. “We loaded election,” Hall said. up on ARs and other firearms that might Despite the concerns, Hall said he’s be subject to a ban should Obama get in.” looking forward to 2009. That concern, the possibility of Sena“I’m a diehard optimist. The indications tor Obama becoming president, is also af- are it should be a great year. The shooting fecting the marketplace, according to Bob sports in this market are very much alive Godell, owner of The Gun Doctor, as re- and growing in acceptance,” Hall said. ported in the Marshall (Texas) News MesAt Sprague Sports in Yuma, Ariz., senger on Sept. 22. owner Richard Sprague also has mixed “We call it the ‘Obama factor.’ People reviews for the future. are very concerned that if a Democrat is “I see sales being decent heading into elected, they will see more restrictions on the election, driven mostly by the fall handguns and assault rifles. I think as a re- hunts, etc. After the election it is anyone’s sult of that we have seen steady handgun guess. If the wrong guy gets elected, it sales, and there’s been an increase in the could be a short-term boon for black guns sale of rifles like AK-47s, as well,” Godell and the like. The long-term outlook in that told the Marshall News Messenger. scenario would be less opportunistic,” Overall, firearm sales have defied the Sprague said. Ruger Announces Repurchase Of Stock n October, Sturm, Ruger & Co. announced that during the third quarter of 2008 it repurchased 1.1 million shares of its common stock, representing 5.5 percent of the total shares outstanding at the start of the repurchase program, for $7.4 million in the open market. The average price per share repurchased was $6.50. According to the Ruger report, the repurchases were funded with cash on hand. At the end of the quarter, 19.5 million shares 8 NOVEMBER 2008 I remained outstanding and the company had approximately $22 million of cash and no debt. In April 2008, Ruger announced that its board of directors had authorized the company to repurchase up to $10 million of its common stock. Ruger reports that $2.6 million remains available for share repurchases under the repurchase program. For more information, visit www.ruger-firearms.com. Read SI DIGITAL www.shootingindustry.com