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  #1  
Old 05-13-2016, 02:03 PM
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Remington "News blurb"


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This seems to indicate Remington is in Denial:

"Why Would Remington Report Huge Losses In 2015?


Last year saw record-shattering gun sales all across the United States. Yet, Remington Outdoor Company reportedly saw a huge loss, to the tune of $135.2 Million dollars. While many other gun makers reported record sales and profits in the black, Remington apparently saw a decrease in sales in several areas. As a result of such a large reported loss, Remington’s corportate rating has been downgraded by Moody’s Investor’s Service to a lowly “poor quality” investment, and a “very high credit risk”.

The company attributed the loss to the 2014 move to Huntsville, Alabama, where it is consolidating operations for roughly half of the companies under the Remington umbrella, and an expansion of an Arkansas ammo plant. In the annual filing, Remington described the expenditures as one-time “restructuring and start-up” costs that would span two years.

Blame for the significant losses were also laid on a softening market for the 1911 pistol, a “soft” hunting season, decrease in ammunition sales, and a large drop in sales of accessories, clothing and air guns. "

Chev. William
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  #2  
Old 05-13-2016, 04:42 PM
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If the losses aren't the result of moving and new plant start up, it makes me wonder if their product line isnt selling well? Suppose that could be the result of poor quality and customer service?
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  #3  
Old 05-14-2016, 06:47 AM
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Unfortunately, many MBA run companies think they should diversify. Diversifying can be good. But the same management must know the best/proper products to diversify into.

Diversifying into clothing is usual poor; only profits are If you merely license clothing manufactures to make and sell your logo..think NFL teams and all that product that the team never even sees; just the $$ rolling in.

Remington diversified into the 1911 market, sounds like sa good direction. But there timing was way off. Kimber and others hit the market perfectly at its peak and made millions. Remington hit the market with a so-so clone well after the market for 1911 was saturated. Most people that wanted a 1911 had two already. No profits there.

Transferring operations is a major loss initially; lost productivity of transferred employees is mind boggling; training of new employees is a $$$ eater. Changes in Quality control and product 'image' cost $$$ in warranty and sales. Such a transfer usually takes 3-5 years to pay off, if ever.

Been there, done that.
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  #4  
Old 05-14-2016, 08:47 AM
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Maybe they are doing things to lower their revenue for an upcoming settlement?
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Old 05-14-2016, 09:23 AM
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Most businesses don't mind writing down profits. Taxes are paid on profits. The accountants move the money into different funds to avoid taxes such as accounts being held for future expenses. Haven't you ever noticed that a lot of big companies seem to report no, or low, profits year after year but are still around? Reinvestment takes away from profits, along with many other associated costs/funds.
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Old 05-15-2016, 06:28 AM
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Would you invest in a company with over 30 million defective guns on the market? What percentage of the total product line do those guns represent? Remington has been insolvent for many years when normal business accounting is applied.
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  #7  
Old 05-16-2016, 02:27 AM
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Quote:
Originally Posted by HarryS View Post
Unfortunately, many MBA run companies think they should diversify. Diversifying can be good. But the same management must know the best/proper products to diversify into.

Diversifying into clothing is usual poor; only profits are If you merely license clothing manufactures to make and sell your logo..think NFL teams and all that product that the team never even sees; just the $$ rolling in.

Remington diversified into the 1911 market, sounds like sa good direction. But there timing was way off. Kimber and others hit the market perfectly at its peak and made millions. Remington hit the market with a so-so clone well after the market for 1911 was saturated. Most people that wanted a 1911 had two already. No profits there.

Transferring operations is a major loss initially; lost productivity of transferred employees is mind boggling; training of new employees is a $$$ eater. Changes in Quality control and product 'image' cost $$$ in warranty and sales. Such a transfer usually takes 3-5 years to pay off, if ever.

Been there, done that.
Well said! Been there, done that, too; more times than I like to remember.

Dan
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