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STURM, RUGER ANNOUNCES RECORD THIRD QUARTER RESULTS

 SOUTHPORT, Conn., Nov. 8 /PRNewswire/ -- Sturm, Ruger & Company, Inc. (NYSE: RGR) reported net sales of $42.0 million in the third quarter ended Sept. 30, 1993 versus $37.0 million in the comparable quarter in 1992. Net income in the quarter totaled $5.6 million which was 35.0 percent ahead of net income of $4.2 million in the third quarter of 1992. Earnings per share were $0.42 versus $0.31 in the third quarter of 1992.
 Commenting on the quarter, Chairman William B. Ruger said: "The company's record performance was the result of stronger demand for its products in virtually all segments. Gross margins in the third quarter increased to 31.5 percent from 28.1 in the comparable period in 1992 primarily as the result of a higher level of shipments as well as improved profitability of the investment casting group."
 Sturm, Ruger & Company is a leading manufacturer of high quality rifles, shotguns and handguns used primarily by sportsmen, hunters and gun collectors. The company utilizes the investment casting process to produce ferrous and non-ferrous parts for its products as well as for customers in other industries. The company is headquartered in Southport and has manufacturing facilities in New Hampshire and Arizona.
 STURM, RUGER & COMPANY, INC.
 Condensed Consolidated Statements of Income
 (Unaudited, in thousands, except per share amounts)
 Three months ended
 Sept. 30,
 1993 Pct. 1992 Pct.
 Firearms sales $37,521 89.4 $31,972 86.4
 Castings sales 4,432 10.6 5,032 13.6
 Net sales 41,953 100.0 37,004 100.0
 Cost of products sold 28,748 68.5 28,604 71.9
 Gross profit 13,205 31.5 10,400 28.1
 Expenses:
 Selling 2,929 7.0 2,367 6.4
 General and administrative 875 2.1 1,059 2.9
 Total operating expenses 3,804 9.1 3,426 9.3
 Operating income 9,401 22.4 6,974 18.8
 Other income-net 298 0.7 206 0.6
 Income before income taxes
 and cumulative effect of
 accounting change 9,699 23.1 7,180 19.4
 Income taxes (a) 4,062 9.7 3,005 8.1
 Income before cumulative
 effect of accounting
 change 5,637 13.4 4,175 11.3
 Cumulative effect of
 accounting change -- -- -- --
 Net income $ 5,637 13.4 $4,175 11.3
 Income per share:
 Income before cumulative effect
 of accounting change $ 0.42 -- $ 0.31 --
 Cumulative effect of accounting
 change -- -- -- --
 Net income 0.42 0.31
 Cash dividends per share (b) 0.25 -- 0.45 --
 Average shares
 outstanding (c) 13,452 -- 13,452 --
 Nine months ended
 Sept. 30,
 1993 Pct. 1992 Pct.
 Firearms sales $ 126,173 90.3 $ 102,615 89.1
 Castings sales 13,714 9.7 12,583 10.9
 Net sales 141,887 100.0 115,198 100.0
 Cost of products sold 92,903 65.5 78,283 68.0
 Gross profit 48,984 34.5 36,915 32.0
 Expenses:
 Selling 8,556 6.0 7,238 6.3
 General and administrative 3,069 2.2 3,153 2.7
 Total operating expenses 11,625 8.2 10,391 9.0
 Operating income 37,359 26.3 26,524 23.0
 Other income-net 1,035 0.7 812 0.7
 Income before income taxes
 and cumulative effect of
 accounting change 38,394 27.0 27,336 23.7
 Income taxes (a) 15,655 11.0 11,139 9.6
 Income before cumulative
 effect of accounting
 change 22,739 16.0 16,197 14.1
 Cumulative effect of
 accounting change (440) (0.3) -- --
 Net income 22,299 15.7 16,197 14.1
 Income per share:
 Income before cumulative
 effect of accounting
 change $1.69 -- $1.20 --
 Cumulative effect of
 accounting change (0.03) -- -- --
 Net income 1.66 -- 1.20 --
 Cash dividends
 per share (b) 0.75 -- 0.75 --
 Average shares
 outstanding (c) 13,452 -- 13,452 --
 (a) Three and nine months of 1993 amounts include the effect of the retroactive increase in the Federal Income Tax rate from 34 percent to 35 percent which reduced net income by $144,000 or $0.01 per share.
 (b) Three and nine months 1992 amounts include special cash dividend of $0.20 per share.
 (c) Adjusted for 2-for-1 stock split in May 1993.
 STURM, RUGER & COMPANY, INC.
 Condensed Consolidated Balance Sheet
 (Unaudited, in thousands)
 September, 1993
 Assets:
 Cash & cash equivalents $ 2,548
 Short-term investments 47,062
 Trade receivables, net 18,790
 Inventories 21,597
 Deferred income taxes 4,898
 Prepaid expenses & other 3,281
 Total current assets 98,176
 Property, plant & equipment 81,174
 Less depreciation 54,262
 Total 26,912
 Deferred income taxes 4,724
 Other 9,101
 Total 138,913
 Current liabilities:
 Trade accounts payable 2,301
 Accrued expenses 1,411
 Product safety modification 1,294
 Product liability 3,000
 Employee compensation 4,946
 Workers' compensation 5,630
 Income taxes 1,570
 Total current liabilities 20,152
 Product liability accrual 16,826
 Stockholders' equity 101,935
 Total 138,913
 -0- 11/8/93
 /CONTACT: William B. Ruger Jr., 603-863-3300, or John M. Kingsley Jr., 203-259-7843, or Stephen L. Sanetti, 203-259-7843, all of Sturm, Ruger & Company/
 (RGR)


CO: Sturm, Ruger & Company ST: Connecticut IN: SU: ERN

LD-WB -- NY088 -- 1936 11/08/93 17:31 EST
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Publication:PR Newswire
Date:Nov 8, 1993
Words:878
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