Remington posts profits, still on the selling block - Remington Arms Co

Shooting Industry, August, 1998 by Russ Thurman

Remington Arms Co. is doing what it said it would do in 1998: cutting costs and making money. The company, which is still "considering several options" including possibly its sale, reported a net profit of $3.7 million for the first quarter of 1998. Total sales were $89 million for the quarter, a modest increase from the $88.5 million posted a year ago.

The key to posting the profit was Remington's determination to cut operating costs and reduce debt. In all, nearly $7 million was saved during the quarter: $4 million in cost of goods sold, $1 million in interest and $2 million in selling, general and administrative costs.

Firearms sales hit $47.9 million, up $2.1 million from the same quarter last year, driven in good measure, according to Remington, by "successful product inductions such as the Model 870 Express 3 1/2-inch Super Magnum shotgun, higher pricing and, to a lesser extent, an improved product mix primarily due to higher sales of centerfire rifles."

Remington's ammo sales didn't fair as well, hitting $28.2 million, down $1 million from last year's first quarter. Fishing tackle was also down, but accessories and gun safes were up.

In all, this is welcome news, not only for Remington, but also the entire industry. Gun sales generate gun sales, especially when the company posting the increases is a powerhouse in the industry.

Looking For A Buyer

A number of potential buyers have given Remington a look-see since April when Tommy Millnet, Remington's president, informed employees that "To ensure the continued prosperity of Remington, it is appropriate to review different alternatives that will help guarantee that the long-term interests of the company and employees are served."

According to informed sources, Colt's Mfg. and Ruger have visited the company, however, insiders say Smith & Wesson appears to be the serious contender for ownership of Remington. Such a consolidation would make S&W the superpower in the industry.

Earlier speculation that Blount would make a bid for Remington doesn't seem to be materializing. If Blount is interested in purchasing Remington, little has been heard from the ever-growing company. However, don't count them out yet. Given Blount's mode-of-operation, and their long-term objectives, Remington would fit nicely under the Blount umbrella.

Dripping With Quality

Galco's new Sporting Collection. catalog arrived last week, with perfection leaping off every page. The quality of the sports bags, gun cases and other accessories is incredible! This is one of those catalogs where, as you turn the pages, you keep saying, "I need that, and that, and that...."

The Sporting Collection carries some healthy price tags. Suggested retail for the Sports Utility Bag is $525, the Oak & Leather Shell Magazine Trunk goes for $2,800, the Classic Gun Case "from $1,495," or customers can pick up a square Solid Brass Oil Bottle for $125.

Just who buys this gear?

"We sell a lot of our bags to sportsmen who enjoy having handmade, eloquent products," said Lisa Des Camps, Galco executive vp. "In fact, many movie and TV directors own our bags. We've become a trend in Hollywood."

Beyond the shooting-related bags, there's a line of angler's bags, fly fishing cases and cigar essentials. Yes, cigar accouterments befitting the man (or woman) who smoke cigars. There's a silver cigar ash tray, leather, wooden and alligator cigar cases and brass Tee and Divot Cigar Holders for golfers.

For more information, contact Galco International, 2019 West Quail Ave., Phoenix, AZ; (602) 258-8295, Fax: (602) 582-6854, www.usgalco.com.

Rambo Mouth

Have you heard about Sylvester Stallone's latest comment on guns?

"Until America, door to door, takes every handgun, this is what you're gonna have. It's pathetic. It really is pathetic. It's sad. We're living in the Dark Ages over there."

Stallone made the statement on the TV program "Access Hollywood" following the shooting death of comedian Phil Hartman. He also urged the repeal of the 2nd Amendment, saying, "It's not 200 years ago. We don't need this anymore."

FFL Watch

As the end of June, the number of 01 FFLs had dropped to 76,678. In 1993, there were 248,692.