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Convention goers look at various models of Ruger 1911 model semi-automatic pistols during the 142nd annual National Rifle Association convention.
Karen Bleier / AFP / Getty Images
Convention goers look at various models of Ruger 1911 model semi-automatic pistols during the 142nd annual National Rifle Association convention.
Karen Bleier / AFP / Getty Images
Gun companies lock up billions in sales, boosted by calls for tougher laws
Almost half the guns made in the US are produced by three companies: Smith & Wesson, Freedom Group and Sturm, Ruger
Glock handguns originate in Austria, Beretta is an Italian creation, and Uzi submachine guns come from Israel, but the bulk of firearms in the U.S. come from domestic factories. And almost half the guns made in America are produced by three companies: Sturm, Ruger & Co.; Smith & Wesson; and Freedom Group. Combined, they sold about 40 million firearms over a quarter-century.
Despite the public outrage over gun violence since the 2012 shootings in Sandy Hook, gun companies’ businesshas boomed this year.Investors generally expect sales jumps when politicians call for tougher gun laws, and the stocks of the two publicly-traded gun stocks have rallied. One has nearly doubled in price in 2015, while the other is up by over 50 percent.Here is a close look at the three largest gun makers in the U.S.
Sturm, Ruger & Co.
This Connecticut-based company sells pistols, revolvers and riflesunder the Ruger brand, for “hunting, target shooting, collecting, self-defense, law enforcement and government agencies,” according to its website. Some of its best-known products are Mini-14 rifles and Redhawk revolvers.
In 2012, Ruger launched a campaign to sell 1 million guns and pledged to give $1 from each purchase to the NRA, an organization that represents manufacturers, as well as gun owners, retailers, activists and its 4 million members.
Like other manufacturers, Smith & Wesson has benefited in recent years from an increase in sales to young people, women and city dwellers purchasing guns for protection and recreational target shooting. Traditional gun buyers tended to be older, white, male and interested in weapons for hunting. The company’s sales reached a record high of $626 million in 2014, a 50 percent increase over 2010. In 2015, first-quarter profits rose significantly to $17.7 million, partially boosted by an increase in accessory sales.
Smith & Wesson’s stock price has doubled from around $9 to about $18 per sharesince January. The company’s lobbying spending peaked at $360,000 in 2011; it decreased to $70,000 last year.
Freedom Group
As the parent company of Bushmaster, maker of the rifle used by Adam Lanza in the 2012 Newtown massacre, Freedom Group, a privately-held conglomerate, has been under intense scrutiny. Cerberus Capital Management, the New York-based private equity firm that owns Freedom Group, has faced public pressure to unload its stake in the company.
George Kollitides II, the CEO, sits on the nominating committee of the NRA. The company also owns Remington Outdoor Co., which bills itself as “America's oldest factory that still makes its original product: guns.”
Remington’s profits surged 52 percent in the first year after Newtown, as consumers rushed to buy guns, fearing stricter laws. But since then, the company has struggled. Known for shotguns and rifles, Remington has reeled from a major 2014 recall, with the company promising to replace millions of triggers on reports of false firings. Last year, revenue dropped20 percentto $1 billion, as analysts say rifle demand is less robust than demand for handguns.
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