Gun-maker forced to restate results

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The company has hired PricewaterhouseCoopers to re-audit the 2002 financial statements and said it hoped to complete the required filings by 30 September.

In a statement Smith & Wesson Holding said the restatement would likely see an increase in expenses and a decrease in operating profit by about $1.6m to $2.1m.

The restatement will also include a $1.6m charge for product liability costs and $2.5m for environmental matters, previously treated as purchase accounting adjustments following the acquisition of Smith & Wesson in 2001.

Smith & Wesson Holding (formerly known as Saf-T-Hammer) bought Smith & Wesson from London-listed Tomkins in May 2001 for $15m.

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