Sturm Ruger closes 2005 with loss
Sturm, Ruger & Company closed out 2005 with disappointing earnings, finishing the fourth quarter with a loss.
For the fourth quarter of 2005, the company reported said it had net sales of $41 million, a net loss of $1.8 million, and a loss of 7 cents per share. For the same period in 2004, net sales were $37.3 million, net income of $1.4 million and earnings per share of 5 cents.
For 2005, the company reported net sales of $154.7 million, net income of $900,000 and earnings per share of 3 cents. For the corresponding period in 2004, the company recorded net sales of $145.6 million, net income of $4.8 million, and earnings per share of 18 cents.
The company said its results for 2005 include $800,000 in severance expenses and $500,000 of asset impairment charges related to various cost-cutting initiatives. In addition, financial results for 2004 have been restated to reduce the LIFO inventory reserve by $900,000 and reduce cost of goods sold by $900,000 for both the fourth quarter and the year ended Dec. 31, 2004.
The restatement, which was caused by an error in the calculation of the LIFO index, increased net income by $500,000, or $2 cents per share in both the fourth quarter and year ended Dec. 31, 2004. – JEFF FEINGOLD