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The Ruger first quarter has been a riveting one for both the company and its shareholders. Ruger (ticker symbol RGR) just announced today that its first-quarter saw a net sales of $123.6 million which pans out to diluted earnings of 87 cents per share. For all of you dividend investors out there this meant a dividend share of 35 cents per share for the first quarter of 2020 as reported by the Ruger Board of Directors.
Ruger First Quarter Earnings Up 17.5% due to Distributor Sales Increase
Ruger CEO Christopher J. Killoy stated that the results for the first quarter of 2020 were due to “Strong consumer demand, exciting new products, and reduced reliance on promotions.” He said these factors are what ultimately led to improved earnings and cash flows.
Ruger First Quarter Earnings Up 17.5% due to Distributor Sales Increase
No doubt that the recent release of the Ruger-57 5.7x28mm pistol and the Ruger PC Charger has helped drive those sales. In addition to the factors surrounding the companies own actions, Mr. Killoy also stated that:
“The COVID-19 pandemic has created significant uncertainty and adversely impacted many industries throughout the global economy. Nevertheless, any adverse financial impact on our business resulting from COVID-19 was negligible in the first quarter of 2020. Beginning in March, we took many proactive steps to maintain the health and safety of our employees and mitigate its impact on our business. These actions included:
- Providing all hourly employees with an additional two weeks of paid time off,
- Encouraging employees to work remotely, wherever possible, and implementing social distancing throughout each manufacturing facility, including in every manufacturing cell,
- Communicating with and assisting employees with potential health issues,
- Restricting visitor access to avoid introducing new people to the factory environment,
- Implementing additional cleaning, sanitizing and other health and safety processes to maintain a clean and safe workplace, and
- Manufacturing and donating personal protective equipment to hospitals, health care facilities, and police and fire departments in our local communities.
Ruger First Quarter Earnings Up 17.5% due to Distributor Sales Increase
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While many industries have suffered in the first quarter (Ruger’s own numbers saw the same dip in march that all industries did), it seems that Ruger has managed to avoid much of the negative financial impact surrounding the recent pandemic.
Will Ruger continue to see increased profits for itself and its shareholders or will this trend level out or worse, dip? Let us know your thoughts down in the comments.
Ruger First Quarter Earnings Up 17.5% due to Distributor Sales Increase
