STURM RUGER SEES BIG DROPS IN THIRD-QUARTER SALES, INCOME
Without extra money in their pocket due to inflation, people aren’t running out to buy guns as frequently much as they did last year, Sturm Ruger & Company officials said in explaining the company’s downturn in revenue and profits.
But sales of its legacy firearms are still doing well, keeping workers at its Newport facility busy, although much of company expansion continues to be down in North Carolina.
Sturm Ruger reported quarterly net sales of $139.4 million, a 22 percent falloff, resulting in net income of $19.9 million, or $1.03 a diluted share, just a little over half of the amount it reported in the third quarter of 2021.
Year-to-date, sales totaled $446.6 million, down 21 percent, from a year ago, and profits of $69.8 million were off by nearly $50 million.
Record sales in 2020 and 2021 were partly attributed to turmoil surrounding the presidential election and its aftermath. The runup to the midterms was comparatively tame, but Ruger officials instead focused on economic reasons for the current downturn.
“Consumer demand was dampened in part by inflationary pressures which often constrain discretionary spending,” said CEO Christopher J. Killoy in a press release.
Added to lower demand are the rising cost of raw materials. The price of stainless steel is up 7 to 8 percent from last year, carbon and alloy steel is up 15 percent and aluminum is up 21 percent, and the price of diesel drives up prices even more, said Killoy in a Nov. 3 conference call.
AMAZON OPENS NEW CARGO FACILITY AT MANCHESTER-BOSTON REGIONAL AIRPORT
Retail behemoth Amazon is now flying cargo to and from Manchester-Boston Regional Airport after leasing space in a new cargo building right off the runway.
The company is now using a fully operational cargo facility, which occupies the site of an old airport hangar and parking lot.
Officials said the facility will provide a big boost to the local economy. There have already been 125 new employees hired and more hires are expected.
Amazon, operating form the airport as Amazon Prime Air, joins FedEx and UPS as major air cargo companies at the airport.
AS MEMBERSHIPS INCREASE, PLANET FITNESS REPORTS A STRONG THIRD QUARTER
Folks are flocking back to the gym. At least that’s the impression you get after reading the company’s thirdquarter financial filings from Planet Fitness.
The Hampton-based fitness chain reported that it now has 16.6 million members, a record high. Total revenue was up by 58 percent, to $244.4 million, and profits jumped 66 percent, to $30.7 million, compared to the last quarter last year.
Planet Fitness now has 2,353 outlets, 29 of which opened in the third quarter. The biggest uptick was in corporate-owned stores, which more than doubled thanks to the company’s acquisition of 114 gyms owned by Sunshine Fitness Growth Holdings LLC, for over $800 million.
The company said it will again be the presenting sponsor of the Times Square New Year’s celebration. And it is making a big marketing push — it’s offering a free Halo View, Amazon’s fitness and health wearable tracker, for member upgrades to Black Card membership. It is also upgrading the Black Card monthly fee by $2 to $24.99, but still keeping its basic membership at $10.
