Posted on 11/24/2017 6:31:02 PM PST by Mariner
Remington Outdoor, the second-largest U.S. gunmaker has suffered a “rapid” and “sharp” deterioration in sales and a similar drop in profits since January, and faces “continued softness in consumer demand for firearms,” credit analysts at Standard & Poor’s Global Ratings said in a report Friday.
S&P as a result has cut the company’s corporate credit rating — already at a junk-bond-level CCC+ — two full notches, to CCC-, a move likely to make the company’s high-yield debt less attractive to investors and lenders, and force Remington to pay more in interest. The company could face a change in control, bankruptcy, or default on its debt by next year.
A backlog of unsold, unwanted firearms will force Remington to operate at a loss and “pressure the company’s sales and profitability at least through early 2018, resulting in insufficient cash flow for debt service and fixed charges,” unless Remington gives up cash to pay for ongoing operations, S&P adds.
(Excerpt) Read more at philly.com ...
I got into one of those gun purchase cycles in the mid 90’s. I bought a Remington 700 BDL in 6mm that I really love. This rifle was made in the mid 60’s and is a tack driver.
Remington didn’t leave NY after the SAFE Act passed there and screwed legal gun owners there, unlike most other makers. For that, they got a Federal rifle contract.
They can take their 40 pieces of silver and go bankrupt.
They cranked out a series of not very good new models lately, including a lower quality, high priced 1911 and culminating in the R51 disaster of a pistol.
“I have enough guns. ”
Heresy.
L
All of those brands are now running into the same problem - CNC machining has gotten bolt action rifle production costs down below the $150 point. For about $200-300, you can pick up a brand new CNC rifle with a better trigger and better accuracy than even a mid range Sako offers at a huge multiple of the price.
Winchester’s finally entered that segment to compete against Mossberg, Ruger, Savage and the rest - Remington’s still having problems. Remember, historically, Remington’s consistently been unable to make a “cheaper” 700 that’s actually any good. Remember the Model 710? It was considerably worse than a 700, but the price wasn’t actually much lower.
Case in point - the Winchester XPR is a new bolt action rifle from Winchester that’s sub-MOA right out of the box.
https://www.gunsamerica.com/blog/sub-moa-winchester-550-xpr-bolt-action-full-review/
And you can get them for $250 after rebate.
http://media.cdnnsports.com/9271/Longguns/WinchesterXPRs-All%201.png
Yeah. The CNC revolution’s here. And Remington is standing on the dock watching the bolt action rifle boat sail away because they won’t do CNC and they can’t figure out where all their sales are going.
wasn’t there big rush when Imam Obama was pres. maybe we’re just back to normal.
Living in fear of a knock on the door
for exercising Ones God given right
Is not in My DNA.
I feel sorry for all the Fudds.
I am in full agreement with that.
I’ll pick up a Remington in the near future.
This is awful.
It’s like they’re ripping a part of me off here.
We’ve had Remington’s in the family sine I was three years old, and for generations prior to that.
The Red Army in eastern Europe never had to face Remington 870’s behind every blade of grass or street corner. 00 Buck is wicked stuff.
It’s because Remington went to crap.
OO Buck is wicked stuff!
Yup and I’m thinking Deer slugs
are Good to have around too.
I’ve got a 1960s Remington 571 .22LR pump, that was given to my grandfather as payment for some dental work. It’s a wonderful rifle. Remington still makes a .22 pump action, but it’s the deluxe 572BDL.
I thought I’d look it up on their web site. The MRSP starts at $723! I had to double check that. Holy crap!
In high school, my JROTC rifle team also had Remington 40X single shot .22LR target rifles. Perfect for 50’ 3 position matches. While I never shot that well, one guy on our team managed a 100-8X prone! My best was 97-4X prone.
Mark
Did you have any Remington’s in your possession when you have that terrible boating accident?
Perhaps it’s market saturation combined with mismanagement.
I read that Eastern Europe is a notable source of tactical weapons and service dogs.
"Demographics is destiny."
I'd hate to be trying to survive on the hopes of selling blue steel and walnut "trad" sporting arms to anyone who isn't getting senior citizen discounts. The industry I work in is staring into the same abyss: a post-boomer market.
Mr. niteowl77
Honestly, they should fail if they were ignorant of the approaching transition risks of 2016. They are a two gun company that has done very little to compete against their rivals. Ruger, S&W, Mossberg, Savage, et al, have accelerated past Remington for over a decade because they listened to what their customers wanted, developed new products, and improved their existing products. Remington was floundering in the best of times.
They need fresh management/ownership.
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