Quote:
Originally Posted by GaryS
I don't know that handgun demand will slow to the point that S&W will have excess machining capacity. Also, they forge and machine parts for other companies not in the firearms industry. The last time I was there (2012) they were making cylinder block parts for Harley Davidson and plumbing fittings for some other company. That was in addition to the gun stuff they were doing.
|
Yeah. James Debney mentioned that on the Q3 2018 earnings call, specifically.
Quote:
|
We have some capacity when it comes to plastic injection molding. We have some capacity when it comes to forging. But everything else is fairly well utilized.
|
Access to this page has been denied.
The company's strategy (or the investor pressure) seems to be get rid of excess capacity rather than utilize it like, say, Pine Tree Castings (Ruger)-- that is, as a separate business altogether.
Given the cyclic boom-and-bust nature of the gun business you'd think that would be an obviously better longer-term decision, but anything that's not cutting costs scares the MBA crowd and the CEO has to make the investors happy so...
edit: that's supposed to be a link to the q3 earnings call transcript. Don't know what the forum software is blocking it.