Sturm, Ruger & Co.: the company Ruger built still makes firearms American shooters want!

Shooting Industry, Oct, 2005 by Russ Thurman

There's an atmosphere of urgency as production racks roll through the Ruger plant in Newport, N.H. They're packed with barrels, receivers, cylinders, stocks and frames--thousands of parts for firearms in the making.

From casting to shipping, the parts flow through numerous production stations as workers craft Ruger firearms at a rapid-fire pace. It's the same in the Ruger plant in Prescott, Ariz.

"We are in the happy position of having a serious problem in producing enough firearms to meet the unprecedented demand for our 2005 new products," said Steve Sanetti, Ruger president. Everywhere you turn, there are racks and racks of new firearms coming through the line. Our engineers are going full-speed ahead and the production people are scrambling to get these products out."

Ruger's "serious problem" is the result of introducing 42 new products and product variations in 2005. The Herculean feat earned the company the 2005 Manufacturer of the Year Award from the Shooting Industry Academy of Excellence.

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"We're proud, flattered and honored," Sanetti said, during the academy's awards presentation in April. "This was a key goal of ours. The employees of the company need to know their hard work and efforts to keep Ruger as the number one American firearms manufacturer have been recognized by dealers, distributors, manufacturers and writers, all the fine people in the academy."

The torrent of new products is a major effort by Ruger to challenge the marketplace and reflects changes at the legendary company.

"In 2004, our theme was 'Ruger Is Back.' This year's theme is 'Ruger Is Changing,'" Sanetti said. "For all its good points, listening to customers has not been a strong suit of Sturm. Ruger. We're now listening to the shooters of America, giving them what they want and the response has been very gratifying."

Headlining Ruger's 2005 new products are the 50th Anniversary New Model Blackhawk, with a classic Flat Top and commemorative gold roll markings; the New Vaquero, with a pre-1962-sized grip frame; the big-bore Super Redhawk Alaskan, with a 2 1/2-inch barrel; the M77 Mark II Frontier Rifle, with front-mounted barrel rib; and the Mark III Hunter .22 pistol, with a 6 7/8-inch target-crowned, fluted barrel. There also are the P345 pistol with Picatinny rail, the Model 77/17 chambered in .17 Mach 2--and the list goes on.

"The demand for these new products could keep the plant open for years, let alone our existing products." Sanetti said.

Continued Expansion

To meet the ever-pressing demand for more new products. Ruger has undertaken significant upgrades of equipment and production methods to increase efficiency and production.

In addition to its manufacturing facilities in Newport and Prescott, the company has corporate offices in Southport, Conn. Its most ambitious expansions are taking place in Newport, home to Ruger's largest manufacturing plant.

"We spent a great deal of time, effort and money to refurbish the former. Dorr Woolen facility adjacent to our plant in Newport to become a state-of-the-art titanium precision investment casting foundry, which we now believe to be the fourth largest such facility in the world," said Bill Ruger Jr., company chairman and CEO.

Ruger Jr., an engineer by training was the plant manager at Newport in the late '70s and '80s and has taken a hands-on approach to many of the day-to-day issues at the facility. He has an extensive background in precision investment casting, which Bill Ruger Sr. pioneered. In addition to using the technology to make firearms, Sturm, Ruger casts parts for other companies, many of them inside the industry.

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"Our casting business continues to improve. We are pleased with the 18 percent increase in sales in the first half of the year and the substantial improvement in this segment's operating results from 2004."

A year ago, Ruger Jr. rang the closing bell to officially signal the end of the trading day at the New York Stock Exchange. Behind the Ruger delegation for the ceremony hung a large banner, which read: "Ruger--Arms Makers For Responsible Citizens."

"As the only firearms company listed on the New York Stock Exchange, we feel that participating in this event not only provided favorable visibility for the company, but also for the responsible American firearms industry as a whole," Ruger said.

From a financial standpoint, Sturm, Ruger is one of the soundest companies in the industry. Since 1950, a year after its founding, the company has shown an annual profit and has never required outside financing.

"At June 30, 2005, we remain debt free, with $33 million of cash and short-term investments," Ruger said. "Firearm unit shipments in the second quarter increased 11 percent from the prior year." For the six months ending June 30, Sturm, Ruger's net sales were $78.7 million compared to $73.0 million for the same period in 2004.

For 2006, there won't be the same surge of Ruger new products that was seen this year.

"We'll have a few surprises next year, but it will be a relatively quiet year for the company. We've had all these new product introductions and it's no secret we're catching up with the demand," Sanetti said. "Our plan for next year is to give everybody a chance to catch their breath, and give our new manufacturing processes and personnel a chance to get caught up. We'll introduce a few nice new products in 2006 and then resume our upward momentum in 2007."