Sturm Ruger & Co Inc (NYSE: RGR)

Sturm, Ruger & Company, Inc. designs manufactures and sells firearms (rifles, pistols, shotguns and revolvers) and related accessories primarily to domestic customers while also producing investment castings and metal injection molding parts for internal use and limited external sales.

Sturm, Ruger & Company, Inc. generates most of its revenue from selling firearms rifles pistols shotguns revolvers and accessories through independent wholesale distributors to commercial sporting markets law enforcement agencies and export customers. The remaining revenue comes from the sale of investment castings and metal injection molding parts primarily for internal firearms use and limited external sales to various industrial customers.

The company operates through the following segments: Firearms and Castings.

• Firearms: This segment designs manufactures and sells rifles pistols shotguns revolvers and related accessories under the Ruger Marlin and Glenfield brands to domestic wholesale distributors serving commercial sporting law enforcement and export markets.

• Castings: This segment produces investment castings and metal injection molding parts mainly for internal use in the firearms segment and also sells limited quantities to external customers across various industries.

Sturm, Ruger & Company, Inc. is a diversified United States firearms manufacturer with strong brand recognition across rifles pistols shotguns and revolvers and it competes on product innovation, quality, availability, brand, and price against many domestic and foreign firms that often concentrate on one or more of these categories. In the castings business the company faces numerous larger specialized foundries and it competes primarily on quality, price, and production lead time.

The company sells its firearms through a network of independent wholesale distributors including 13 domestic commercial distributors, 26 law enforcement distributors, and 44 export distributors with its largest customers being Lipsey’s representing 27% of firearms sales, Sports South at 22%, and Davidson’s at 18%. End users of the firearms comprise sportsmen, hunters, individuals seeking self defense, law enforcement agencies, governmental organizations, and gun collectors. The castings segment also supplies parts to external industrial customers.