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Sturm, Ruger & Co. reports a 19% jump in sales and greater demand for guns

Aug 3, 2016, 02:39 IST

Worker Marilyn MacKay assembles a rifle at the Sturm, Ruger & Co., Inc. gun factory in Newport, New Hampshire January 6, 2012.Reuters/Eric Thayer

Sturm, Ruger & Co. reported a rise in quarterly sales as demand for its firearms increased.

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The company reported net sales of $167.9 million, up 19% year-on-year, and adjusted earnings per share totaling $1.22. It also raised its dividend.

In the earnings statement, CEO Michael Fifer noted that new products like the AR-556 sporting rifle drove one-third of all sales.

The company's shares gained 16% this year through the market close on Tuesday. They rallied some more in June as the gun-control debate got louder after the Orlando mass shooting.

Investors anticipated that gun sales would rise out of fear that firearms may be harder to get if tougher laws are passed.

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In the first quarter, the company's net sales jumped 26%, as background checks jumped during the same period, according to the FBI.

More to come ...

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