The Mark IV pistol recall will cost Sturm, Ruger & Company $2.5 million, the company said last week.
CEO Chris Killoy told investors Thursday Ruger resumed production of the pistols with “enhanced parts” in late June, though second quarter sales suffered as a result, coming up $5 million short of expectations.
“We are able to retrofit approximately 1,000 pistols per day and we are working through the backlog of folks that have already signed up,” he said during a conference call last week. “We thank our loyal customers for their continued loyalty to Ruger and for their patience.”
Ruger discovered a flaw with the Mark IV’s safety mechanism in early June and encouraged owners with affected guns to sign up for retrofitting.
“In particular, if the trigger is pulled while the safety levers are in an interim position partway between the ‘safe’ and ‘fire’ positions — neither fully engaged nor fully disengaged, and the trigger is pulled, the gun may not fire. It will sound like a misfire,” Mark Gurney, director of product management for Ruger, said in a video in June. “However, if the trigger is released and the safety is rotated to the full ‘fire’ position, then the gun may discharge.”
So far, no injuries due to the safety malfunction have been reported, Killoy said. Affected models include the Mark IV Target, Hunter, Competition, 22/45, 22/45 Lite and 22/45 Tactical. For more information about the recall, click here.
Ruger’s second quarter net sales dropped 22 percent over last year as competitors continue unloading extra inventory at discounted prices.
Killoy said in a press release Wednesday Ruger raked in a net profit of $25 million between April 1 and July 1 — 44 percent less than second quarter 2016.
The dismal results come after a strong first quarter for the company, which reported $167.4 million in sales — a 3 percent decline over first quarter 2016, when consumer fears of impending gun control stoked demand.
“The second quarter was a challenge for us,” he told investors during a conference call Thursday. “Demand in the second quarter slowed considerably from the prior year.”