Gun sales boost S&W profit

Josey1

Gun sales boost S&W profit Tuesday, March 19, 2002By WILLIAM FREEBAIRN Smith & Wesson Holding Corp. reported a third-quarter profit of $1.27 million that was buoyed by booming gun sales. The company, formerly called Saf-T-Hammer Corp., said it was benefiting from a broad increase in gun sales nationwide, and the apparent end of a backlash against the company over a safety deal with the government two years ago. "The positive trend is continuing," said Robert Scott, president of the company. "The overall industry is doing well and we've been acepted back by much of the industry as members of the family." Smith & Wesson earned the ire of some gun enthusiasts when it signed the March 2000 deal with the Clinton administration. The deal, which has not been enforced, committed Smith & Wesson to continue making safety improvements in its products and more closely monitor its network of dealers. The company was owned by British conglomerate Tomkins until last May, when Saf-T-Hammer purchased the Springfield gun manufacturer for $15 million plus assumed debt. Smith & Wesson Holding Corp. reported net income of $1.2 million, or 7 cents per share, in the quarter ending Jan. 31. Figures from last year's third quarter were unavailable as Saf-T-Hammer had not bought Smith & Wesson at that time. The profit represented a significant improvement from the fiscal second quarter, when the company recorded a loss of $426,000. Revenue has been growing steadilly for the company, officials said. In the third quarter, revenue rose to $21.6 million. A comparison to last year's third quarter was unavailable. But the figure represented a sequential improvement compared with the second quarter, when revenue was $19.9 million. In the traditionally weak first quarter, revenue was just $11.2 million. Scott said revenue was stronger than in recent years, although probably short of strong sales recorded in the mid-1990s. Scott said the company's orders are strong, with backlogs on some products. He said the company added a few production personnel in recent months to cope with increased demand. The company's stock (OTC: SMWS) closed yesterday at $2.46, up 23 cents, or 10 percent, in heavier-than-normal trading. The stock price has been on the rise since the company changed its name from Saf-T-Hammer to Smith & Wesson Holding Corp. last month; it traded below $1 as recently as December. c 2002 UNION-NEWS. Used with permission. http://www.masslive.com/business/unionnews/index.ssf?/business/pstories/biz19smi.html