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Smith and Wesson profits up

Josey1Josey1 Member Posts: 9,598 ✭✭
edited November 2001 in General Discussion
Smith and Wesson profits upBy Ben Trovato16/11/2001Handgun manufacturer Smith & Wesson`s self-preservation deal with the Clinton administration may have sparked off an unprecedented PR disaster, but now it looks like it`s recovering.The company ran into serious trouble after they became the only firearms manufacturer to negotiate with the USA government in return for protection from the swathe of "anti-gun" law suits cutting through America. The deal - which has never been implemented - included an agreement to restrict gun show sales and install trigger locks and safety devices on guns.But the Smith & Wesson underestimated the anger this move would arouse in Americans, and a boycott of its products - spearheaded by NRA President Charlton Heston - damaged sales to such an extent that it cut 15 percent of its workforce. Sales had been declining since 1995, but a grievous consumer backlash caused sales to plummet by around 50%.Now the company looks to be back on its feet - with the surge in demand after the terrorist attacks on the World Trade Centre and the Pentagon contributing to some $7.6 million in sales in October - making profits of $663,000 for the month - a far cry from its $2 million loss in October last year."I believe these results are a very positive indicator of our progress and represents a decisive turnaround," said Bob Scott, Smith & Wesson's president.The company's boost in sales following the terrorist attacks, but a spokesman said: "It's not the way we would have wanted to do it." http://www.leadshot.com/story.asp?id=391
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Comments

  • IconoclastIconoclast Member Posts: 10,515 ✭✭✭
    edited November -1
    Not hard to understand, a large % of those rushing out to buy firearms for the first time have little or no knowledge of the politics of the firearms industry. Nor, since they could still buy a weapon, do they probably much care. A one time surge in sales will not save S&W from bankruptcy if the company is not sold to a more enlightened management group.
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  • Walt NunleyWalt Nunley Member Posts: 228 ✭✭✭
    edited November -1
    SMITH AND WESSON IS NOW OWNED BY SOME AMERICANS I THINK NOT THE BRITS THAT TOOK THE HUD DEAL SO ITS OK TO BUY S&W NOW ISNT IT??I WILL NOW BARRACADE MY DOORS,SHUTTER MY WINDOWS,GO TO CONDITION ZEBRA,RIG SHIP FOR DEPTH CHARGE AND GENERAL EMERGENCY ,FOR THE ANTI S&W BARRAGE TO FOLLOW
    Submarine Sailor,Truck Driver,and very bad typist.GO RUSTY #2
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