(Corrects first bullet point and paragraph 10 in April 29 story
to show that analysts' average estimate for first-quarter sales
was $131.7 million, not $112.3 million)
* First-quarter sales $155.9 mln vs est $131.7 mln
* Earnings $1.20/share vs est $1.01
* Says searching for a third manufacturing facility
* Shares up more than 8 pct after market
April 29 Gunmaker Sturm Ruger & Co Inc
reported record quarterly sales after fears of new gun controls
spurred demand, and the company said it was scouting for a third
factory to boost production.
Shares of the company rose about 8 percent in extended
Sales jumped about 39 percent to $155.9 million in the first
quarter from a year earlier. It rose 10 percent from the fourth
Gun demand has been boosted in part by attempts to ban the
sale of certain high capacity rifles and ammunition in the wake
of the shootings at an elementary school in Newtown,
Connecticut in December.
"Strong demand from consumers, coupled with the current
political climate, resulted in unprecedented levels of orders
from retailers to distributors ...," the company said in a
Background checks for firearm sales, a measurement commonly
used to gauge the firearm industry's performance, rose more than
28 percent year-on-year in March, data from the FBI's National
Instant Criminal Background Check System showed. In February, it
rose about 33 percent.
Backlog at Dec. 31 totaled 1.5 million units and represented
about nine months of production capacity at current build rates,
the company said.
Net income rose to $23.7 million, or $1.20 per share, in the
quarter ended March 30, from $15.5 million, or 79 cents per
share, a year ago.
New products, including the LC380 and SR45 pistols,
represented 35 percent of firearm sales in the quarter.
Analysts on average expected a profit of $1.01 per share on
revenue of $131.7 million, according to Thomson Reuters I/B/E/S.
The company, which competes with Smith & Wesson Holding Corp
and privately held Glock Inc and Taurus, raised its
quarterly dividend by 21 percent to 49 cents per share.
Sturm Ruger shares were up about 7 percent at $52.34 in
trading after the bell. They closed at $49.05 on the Nasdaq.
(Reporting by Aditi Shrivastava in Bangalore; Editing by Sriraj