Firearm, ammo sales up 23 percent

Firearm and ammunition manufacturers posted a 22.7 percent increase in wholesale business in the fourth quarter of 2006, compared to the same period a year earlier, according to the National Shooting Sports Foundation (NSSF).

From October through December 2006, sales of pistols and revolvers rose 56.4 percent, over the same time in 2006. Long-gun sales increased 11.4 percent and ammunition sales jumped 22 percent, compared to the same 2005 period.

During the quarter, $67.4 million was generated for conservation, compared to $54.9 million in 2005. The latest tax collections, according to NSSF, suggest overall sales of $637 million, not including retail markup or final retail sales. For all of 2006, $250.1 million was collected in excise taxes, up 11.5 percent from $224.3 million in 2005.

The increases are based on statistics from the latest Pittman-Robertson federal excise tax collection report, as released by the U.S. Department of the Treasury. Excise taxes are calculated as a percentage of wholesale receipts, paid quarterly by firearm and ammunition manufacturers, and earmarked for state wildlife conservation and habitat restoration programs.

Companies report sales increases.

Alliant Techsystems (ATK) reports that sales in its fourth quarter of fiscal year 2007, which ended on March 31, increased 10 percent to more than $1 billion, compared to $918 million in the prior-year quarter.

Smith & Wesson announced sales for its third quarter, ending Jan. 31, 2007, were $53.9 million, a 39.5 percent increase over the comparable quarter last year.

Remington reports that its net sales increased 6 percent to $102.3 million for its first quarter 2007, as compared to net sales of $96.5 million for the quarter ending March 31, 2006.

In April, Remington announced that it would be acquired by an affiliate of Cerberus Capital Management, L.P. as part of a definitive agreement between Cerberus and RACI Holding.

The estimated value of the sale is $370 million, which includes assumption of Remington's approximate $252 million of funded indebtedness, subordinated notes and other indebtedness. The transaction is expected to close this month.

Olin Corp. announced sales for its first quarter of 2007 were $765.7 million, compared to $725.1 million in 2006.

"Winchester's first quarter pretax earnings of $8.1 million are double the first quarter of 2006 earnings, and represent the best first quarter ever for the Winchester business," said Joseph D. Rupp, chairman, president and CEO.

EXCISE TAX COLLECTIONS--4TH QUARTERS 2005 & 2006

                                                Increase/
            2005 4th Quarter  2006 4th Quarter  Decrease          /- %

Handguns     $9,813,134.23    $15,356,251.34      $5,543,117.11   56.4%
Long Guns   $27,144,141.73    $30,228,124.56      $3,083,982.83   11.4%
Ammunition  $18,031,521.10    $21,909,401.35      $3,877,880.25   22%
Total       $54,988,797.06    $67,493,777.25     $12,504,980.19   22.7%