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By Trudy Tynan, AP Staff
SPRINGFIELD, Mass. — Handgun maker Smith &
Wesson, which cut 15 percent of its work force a year
ago, reported $7.6 million in sales during the month
following the terrorist attacks on the World Trade Center
and the Pentagon.
The boost in domestic sales helped the company, which
had been struggling with consumer backlash because of
its deal with the Clinton administration to end federal
lawsuits, post profits of $663,000 for the month.
The company lost about $2 million during October 2000,
according to chief financial officer John Kelly.
``I believe these results are a very positive indicator of our
progress and represents a decisive turnaround,'' Smith &
Wesson president Bob Scott said Wednesday.
For years, Smith & Wesson, founded in 1852, was the
nation's leading handgun maker. Its revolvers were used
by sharpshooter Annie Oakley and the U.S. Cavalry,
while its .38 caliber Police Special and .357 Magnum
were the handgun carried by generations of police.
Sales, however, which had been steadily falling since
1995, dropped by half last year following an agreement
with federal officials to restrict sales at gun shows and
install trigger locks and other safety devices on its guns.
Last October, the company laid off about 125 employees,
or 15 percent of its work force, at its Springfield
headquarters. The layoffs and subsequent smaller
cutbacks have left the company with about 550 workers
here.
``We've seen a sizable increase in domestic sales since
Sept. 11 with a lot of first-time buyers,'' Kelly said. ``That
spike may well level off, but more importantly some
dealers that had stopped carrying our products have
started carrying Smith & Wesson again. And we have
picked up some new distributors.''
``It's not the way we would have wanted to do it,'' Kelly
said of the attacks.
He predicted that the handgun market could be heading
back to the levels of the late 1980s and early 1990s,
before the upheavals caused by tightened licensing and
carry laws and municipal lawsuits.
``With our change in ownership, we've gained back some
of what we had lost and should be well-positioned,'' he
said.
Saf-T-Hammer, a small Arizona-based gun lock
manufacturer, purchased the company in May from
British conglomerate Tomkins PLC for $15 million in cash
and repayment of a $30 million loan. Under the
agreement, Saf-T-Hammer also assumed liability for
about 30 gun death lawsuits filed by states and
municipalities against Smith & Wesson.
Tomkins paid $112.5 million for Smith & Wesson in 1987.
The legal picture for Smith & Wesson and other gun
companies also improved last month when the U.S.
Supreme Court refused to review a ruling upholding a law
passed by the Louisiana Legislature blocking the city of
New Orleans suit against gun manufacturers.
Another 26 states have passed similar laws, at the urging
of the National Rifle Association.
(Copyright 2001 by The Associated Press. All Rig
http://kgw.com/kgwbusiness/story.html?StoryID=31176
SPRINGFIELD, Mass. — Handgun maker Smith &
Wesson, which cut 15 percent of its work force a year
ago, reported $7.6 million in sales during the month
following the terrorist attacks on the World Trade Center
and the Pentagon.
The boost in domestic sales helped the company, which
had been struggling with consumer backlash because of
its deal with the Clinton administration to end federal
lawsuits, post profits of $663,000 for the month.
The company lost about $2 million during October 2000,
according to chief financial officer John Kelly.
``I believe these results are a very positive indicator of our
progress and represents a decisive turnaround,'' Smith &
Wesson president Bob Scott said Wednesday.
For years, Smith & Wesson, founded in 1852, was the
nation's leading handgun maker. Its revolvers were used
by sharpshooter Annie Oakley and the U.S. Cavalry,
while its .38 caliber Police Special and .357 Magnum
were the handgun carried by generations of police.
Sales, however, which had been steadily falling since
1995, dropped by half last year following an agreement
with federal officials to restrict sales at gun shows and
install trigger locks and other safety devices on its guns.
Last October, the company laid off about 125 employees,
or 15 percent of its work force, at its Springfield
headquarters. The layoffs and subsequent smaller
cutbacks have left the company with about 550 workers
here.
``We've seen a sizable increase in domestic sales since
Sept. 11 with a lot of first-time buyers,'' Kelly said. ``That
spike may well level off, but more importantly some
dealers that had stopped carrying our products have
started carrying Smith & Wesson again. And we have
picked up some new distributors.''
``It's not the way we would have wanted to do it,'' Kelly
said of the attacks.
He predicted that the handgun market could be heading
back to the levels of the late 1980s and early 1990s,
before the upheavals caused by tightened licensing and
carry laws and municipal lawsuits.
``With our change in ownership, we've gained back some
of what we had lost and should be well-positioned,'' he
said.
Saf-T-Hammer, a small Arizona-based gun lock
manufacturer, purchased the company in May from
British conglomerate Tomkins PLC for $15 million in cash
and repayment of a $30 million loan. Under the
agreement, Saf-T-Hammer also assumed liability for
about 30 gun death lawsuits filed by states and
municipalities against Smith & Wesson.
Tomkins paid $112.5 million for Smith & Wesson in 1987.
The legal picture for Smith & Wesson and other gun
companies also improved last month when the U.S.
Supreme Court refused to review a ruling upholding a law
passed by the Louisiana Legislature blocking the city of
New Orleans suit against gun manufacturers.
Another 26 states have passed similar laws, at the urging
of the National Rifle Association.
(Copyright 2001 by The Associated Press. All Rig
http://kgw.com/kgwbusiness/story.html?StoryID=31176