Ammo Maker’s Revenues Soar with Increased Product Demand

Why is ammo in short supply? Quite simply because Americans are buying ammunition (and reloading supplies) like never before, grabbing everything that comes off the production line. Consider this, ATK (NYSE:ATK), which owns Alliant Powder, CCI, Federal, RCBS, Bushnell, Savage and many other gun industry brands, reported a huge increase in revenues, mostly due to increased ammo sales.

ATK reported that second-quarter sales in its Sporting Group — which includes ammunition as well as optics, reloading gear and sport-shooting and tactical accessories — were up 48 percent to $421 million compared to $284 million in the same period last year. The company said the increase in sales was driven by higher volume in ammunition, sales from Savage of $57 million, and a previously announced ammunition price increase. ATK reported that its overall net income for the quarter was up 42 percent. Counting both military and civilian (Sporting Group) production, ATK produces over 6.5 Billion rounds of ammunition every year. Yep, that’s “B” as in Billion. That includes everything from .22 rimfire up to tank ammo.

$387,000,000 of Ammo for the Military
In related news, ATK announced that it has received orders for approximately $387 million for ammunition to be produced at its Lake City Army Ammunition Plant. The orders fall under the plant’s new production contract, which began Oct. 1, 2013, and include a mix of 5.56mm, 7.62mm and .50-caliber high-quality military ammunition.