http://offgridsurvival.com/rugerstopsacceptinggunorders/
SOUTHPORT, CT –Sturm, Ruger & Company, Inc. (NYSE-RGR), announced today that for the first quarter 2012, the Company has received orders for more than one million units. Therefore, the Company has temporarily suspended the acceptance of new orders.
In an effort to find the truth here, I went on Ruger’s website and ordered a copy of their Annual Report, which I just received.
Obviously, Ruger sells their production to major distributors – Ellet Bros., Lipsey’s, Davidson’e, Sports South and Big Rock.
Ruger advised that a majority of their orders are placed in the 1st and 3rd quarter of the calendar year, which mirrors the distributor show seasons.
Ruger currently has 1230 FT employees, 321 seasonal employees, and 70 employees in R&D.
I would guess that their returns and pre-production runs are handled by R&D.
They indicate that new products are a large driver of sales, and that their mature products have strong sales also.
Units on backorder for 2011 as follows: Q1 = 332,700; Q2 = 315,500; Q3 = 204,500; Q4 = 337,400.
The average sales price for all units sold last year was $262 – very interesting!
It is easy to see that their order back log is a constant threat, and never goes away.
All of this tells me that their backlog is quite realistic, and that they need to get a handle on it quickly.
Having 1,500 employees in 2 locations means that nothing radical is going to happen in the short term to make more units.
It makes perfect sense for them to put a hold on current 2012 orders while they get caught up from the 2011 year-end backlog first.
This will keep end customers from having unrealistic delivery expectations about their orders. It was the right thing to do by Ruger.
Here is the link for the Annual Report:
http://www.envisionreports.com/RGR/2...m?voting=false