The Down Range Forum

Member Section => Down Range Cafe => Topic started by: philw on March 20, 2009, 05:06:09 PM

Title: Remington issues
Post by: philw on March 20, 2009, 05:06:09 PM
Quote
Former Remington Arms Co. CEO Thomas Millner left the company to take over as president and CEO of Cabela's, Inc. (NYSE: CAB)

Millner will start his new job April 6. He replaces Dennis Highby, who assumes the position of vice chairman of Cabela's board.

Millner, 55, worked for Remington for 15 years, including the past 10 as CEO.

Theodore Torbek replaces Millner as CEO of Remington Arms Co. and its parent, Freedom Group, Inc. Torbek joined Remington as chief operating officer in February 2008.

Prior to joining Remington, Torbek worked for General Electric Co. (NYSE: GE), serving in various positions since 1978 including vice president of operations of GE Industrial, president and CEO of GE Rail Services, and vice president and general manager of global supply chain at GE Aircraft Engines.

Freedom Group is a designer, manufacturer, and marketer of firearms, ammunition, and related products for the hunting, shooting-sports, law-enforcement, and military markets. Brands include Remington, Marlin, Harrington & Richardson, New England Firearms, L.C. Smith, Parker, Bushmaster, DPMS/Panther Arms, EOTAC, and INTC.

Remington employs nearly 1,000 people at its Ilion gun plant.

Cabela's Inc., founded in 1961, is a specialty retailer and direct marketer of hunting, fishing, camping, and related outdoor merchandise. The company has 13,000 employees in the United States and Canada.
http://www.cnybj.com/news/single-news-article/article/ceo-departs-remington-arms.htm


there is also talk about a loss 
http://www.cnybj.com/featured-channel/article/remington-posts-394-million-loss-for-2008.html
Quote
Remington posts $39.4 million loss for 2008

By: Traci Gregory
03/19/09 11:34 AM
ILION - Remington Arms Co., Inc. lost $39.4 million in 2008 on sales of $591.1 million.

That compares to a net loss of $1.5 million on sales of $489 million in 2007.

The 20.9 percent sales increase was mainly due to Remington's acquisition of The Marlin Firearms Co. as well as increased sales of Remington's R-15 and R-25 product lines in 2008.

The company recorded $47.4 million in non-cash impairment charges during the year. The charges included $3.1 million associated with certain trademarks obtained during the Marlin acquisition.

Remington plans to hold a conference call in early April to discuss its results.

Headquartered in Madison, N.C., Remington designs, produces, and sells sporting-goods products for the hunting and shooting-sports markets, as well as the military, government, and law-enforcement markets.

Founded in 1816 in upstate New York, the company's Ilion facility employs nearly 1,000 people.

Remington distributes its products throughout the United States and in more than 55 foreign countries.

 

Contact Gregory at tgregory@tmvbj.com


Title: Re: Remington issues
Post by: Hazcat on March 20, 2009, 05:14:21 PM
NOT to worry, Cerebus had all of this planed.  The 'loss' is no big thing.  And hopefully the new CEO will be an actual gun guy not just a CEO.
Title: Re: Remington issues
Post by: philw on March 20, 2009, 05:26:09 PM
NOT to worry, Cerebus had all of this planed.  The 'loss' is no big thing.  And hopefully the new CEO will be an actual gun guy not just a CEO.

how is a Loss of nearly $40 Mill ( if that is accurate )  Planed  ????
Title: Re: Remington issues
Post by: Hazcat on March 20, 2009, 06:03:31 PM
Phil,  Those are just numbers reported as the accountant wants.  Cerebus went into this with a plan.
Title: Re: Remington issues
Post by: 1776 Rebel on March 20, 2009, 06:57:15 PM
The financial situation at Remington has been horrible for years. They are deeply in debt and for the amount of revenue brought in the profit picture ain't pretty. While they were still public I recall something in the order of a quarter BILLION in debt and negative profit.

Cerberus surely approached the acquisition with a plan, but it may not be to anyone's liking. Clearly they are shifting management around to help solve those problems. If it don't work then its back to slash and burn. On a tiny scale look what they did with Cobb Manufacturing. Gave Patel a new position and dissolved the company. Now Remington has a stronger brand, but that doesn't mean they would keep all the factories open, the product line as extensive as it is now, or wouldn't sell off a division (ammo, LE etc etc). Cerberus isn't buying up the companies for some altruistic reason. They want to make money, and lots of it. So as the godfather says...It's nothing personal, just business.

Just as a side note. George Kollitides of Cerberus is running for the NRA board of directors. I will be dammed if I vote for him. It sends up all sorts of red flags that a guy from the company that owns a significant piece of the firearms business is also going to influence my political rights. No f'ing way. If anyone falls for that, shame on him. I don't want someone who may have allegiances that conflict with protecting my rights pure and simple. I wish him the best in business but he ain't gonna call the shots from the ground to 30,000 ft up. That used to be called a robber barron.
Title: Re: Remington issues
Post by: tombogan03884 on March 20, 2009, 08:09:39 PM
The financial situation at Remington has been horrible for years. They are deeply in debt and for the amount of revenue brought in the profit picture ain't pretty. While they were still public I recall something in the order of a quarter BILLION in debt and negative profit.

Cerberus surely approached the acquisition with a plan, but it may not be to anyone's liking. Clearly they are shifting management around to help solve those problems. If it don't work then its back to slash and burn. On a tiny scale look what they did with Cobb Manufacturing. Gave Patel a new position and dissolved the company. Now Remington has a stronger brand, but that doesn't mean they would keep all the factories open, the product line as extensive as it is now, or wouldn't sell off a division (ammo, LE etc etc). Cerberus isn't buying up the companies for some altruistic reason. They want to make money, and lots of it. So as the godfather says...It's nothing personal, just business.

Just as a side note. George Kollitides of Cerberus is running for the NRA board of directors. I will be dammed if I vote for him. It sends up all sorts of red flags that a guy from the company that owns a significant piece of the firearms business is also going to influence my political rights. No f'ing way. If anyone falls for that, shame on him. I don't want someone who may have allegiances that conflict with protecting my rights pure and simple. I wish him the best in business but he ain't gonna call the shots from the ground to 30,000 ft up. That used to be called a robber barron.

I think you are looking at this the wrong way. Money is a much bigger stake in the fight for him than a few guns are to us individually. We support the 2A to keep our guns, HE will be doing it to keep his lively hood.
Title: Re: Remington issues
Post by: twyacht on March 21, 2009, 06:55:19 AM
Sounds like the Rem/Marlin acquisition, shifted a lot of paper, patents, etc,....and lawyers and accountants probably got compensated VERY well.

Reminds me of the hey-day of Donald Trump in Real Estate, buy,buy,buy. Greed is good.

Title: Re: Remington issues
Post by: fightingquaker13 on March 21, 2009, 07:10:15 AM
Remington's troubles are structural. The hunting market is shrinking in proportion to losses of places to hunt. This trend isn't going to be reversed as population population growth increases and suburban sprawl is allowed to continue. (I'm typing from a house in a subdivision where I used to go quail hunting here So.Fl., and it was only 25 years ago). Likewise, most casual hunters only need one deer rifle and maybe two shot guns, and the damn things never wear out. Coming up with new whizbang calibers to sell guns will only get you so far. The ammo side of things seems to be their only dependable source of revenue in the future unless they can come up with some great new design that will revolutionize rifles the way Glock and Ruger did with pistols.
fightingquaker13
Title: Re: Remington issues
Post by: tombogan03884 on March 21, 2009, 11:50:11 AM
The AR clones seem to be doing well, maybe they should dump a large portion of their "hunting" line and come up with a high grade AK to complement the AR's and use the saved money to expand ammo production.
Title: Re: Remington issues
Post by: Ping on March 22, 2009, 08:44:45 PM
Is that "Cerberus" not "Cerebus"? Cerberus is the three headed dog that guarded the gate to Hades. There also the same boneheads that are screwing up Chrysler by putting a guy who could not run Home Depot as a Car CEO!!!
Title: Re: Remington issues
Post by: runstowin on March 22, 2009, 10:22:59 PM
The AR clones seem to be doing well, maybe they should dump a large portion of their "hunting" line and come up with a high grade AK to complement the AR's and use the saved money to expand ammo production.

I like that idea.
Title: Re: Remington issues
Post by: fullautovalmet76 on March 22, 2009, 11:12:16 PM
Remington's troubles are structural. The hunting market is shrinking in proportion to losses of places to hunt. This trend isn't going to be reversed as population population growth increases and suburban sprawl is allowed to continue. (I'm typing from a house in a subdivision where I used to go quail hunting here So.Fl., and it was only 25 years ago). Likewise, most casual hunters only need one deer rifle and maybe two shot guns, and the damn things never wear out. Coming up with new whizbang calibers to sell guns will only get you so far. The ammo side of things seems to be their only dependable source of revenue in the future unless they can come up with some great new design that will revolutionize rifles the way Glock and Ruger did with pistols.
fightingquaker13

Bingo! We have a winner!