Smith & Wesson
Company Report and Analysis
Iryna Chykunova
William Bell
John Condra
4/4/2013
Company Description
Smith & Wesson Holding Corporation is the current market leader in firearms, and it has been for the last 160 years. The company manufactures revolvers, polymer pistols, metal pistols, bolt action rifles, black powder rifles, and modern sporting rifles, as well as fire-arm related products, ammunition, handcuffs, and similar accessories for both public and private sectors world-wide. While Smith & Wesson uses raw materials in manufacturing, e.g. steel, wood, lead, brass, and plastic. However, to meet demand response, the company also buys parts for the production of the fire arms. Their top two suppliers are Precision Castpart Corporation and Carpenter Technology Corporation. The top customer is Occidental Petroleum, an international oil and gas exploration and production company. Thompson/Center Arms, and Performance Center are all part of the Smith & Wesson family of brands. The President and CEO, P. James Debney, and chairman Barry Monheit, own 4.6% of the company’s shares of common stock, as of October 2012. Blackrock, the largest asset manager in the world, owns 5.2% of common stock. Vanguard Group Incorporated holds approximately 4.9 million shares, in the fourth quarter of 2012. During 2012 89.1% of Smith & Wesson’s customers were U.S. domestic consumers, 6.9% were U.S. government at state and national levels, and 4.0% were sold to the international consumers. Large international orders come from Belgium, Australia, Canada, and Puerto Rico. The company’s receivables are typically collected within 30-90 days. However, payment collection periods can be extended due to various hunting seasons.
Competitors
Smith & Wesson believe that their company is a strong competitor in the market. The primary competitors are Ruger and Taurus in the revolver market, and Beretta, Glock, Heckler & Koch, Ruger, Sig