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Saks Incorporated

(NYSE:SKS)
Company Financials
Income Statement
Balance Sheet
Cash Flow Statement

Contact Information
Saks Incorporated
12 East 49th St.
New York, NY 10017
NY Tel. 212-940-5305

Type: Public
On the web: http://www.saksincorporated.com
Employees: 16,700
Employee growth: 4.4%

Once one of the top US department store operators, Saks Incorporated has retrenched to focus on its luxury Saks Fifth Avenue Enterprises (SFAE) business. Following the sale of its 38-store Alabama-based Parisian chain to Belk and its 142-store Northern Department Store Group (Bergner's, Boston Store, Carson Pirie Scott, Herberger's, and Younkers) to The Bon-Ton Stores, both in 2006, Saks operates some 55 Saks Fifth Avenue high-end department stores in 25 states, about 50 outlet stores under the Off 5th banner, and 95 Club Libby Lu specialty shops (acquired 2003). The company bought renowned luxury retailer Saks Holdings (owner of Saks Fifth Avenue) and adopted the high-dollar Saks name in 1998.

Key numbers for fiscal year ending January, 2008:
Sales: $3,282.6M
One year growth: 11.7%
Net income: $47.5M
Income growth: (11.7%)

Officers:
Chairman and CEO; CEO, Saks Fifth Avenue Enterprises: Stephen I. (Steve) Sadove
EVP Finance and CFO: Kevin G. Wills
EVP Service Operations and CIO: Michael (Mike) Rodgers

Competitors:
Bloomingdale's
Neiman Marcus
Nordstrom

 
 
 
 
 
Company History: Younkers

Incorporated: 1904
NAIC: 45211 Department Stores

Younkers is a Midwestern department store chain with 47 stores scattered throughout Illinois, Iowa, Michigan, Minnesota, Nebraska, South Dakota, and Wisconsin. Younkers' stores are generally located in midsized to smaller cities where competition is more limited than in major metropolitan areas. Younkers' stores sell apparel and accessories for men, women, and children, as well as home furnishings and furniture. Younkers and its peers in Saks Incorporated's Northern Department Store Group were put up for sale in 2005.

Younkers (originally Younker & Brothers) was founded in Keokuk, Iowa, in 1856 by three young Polish-born brothers: Lipman, Samuel, and Marcus Younker. The general store was a base from which they strapped packs of merchandise on their backs that they carried into the neighboring countryside to farmers and others too busy or isolated to shop in town. They founded Iowa's first synagogue and closed the store on Saturdays, the Jewish Sabbath. Another brother, Herman, joined them in 1874 and opened a 1,320-square-foot dry goods store in Des Moines on their behalf with a $6,000 grubstake. "We have come here to live and mean to do what is right," the store declared in a newspaper advertisement taken out on its opening.

With the closing of the Keokuk store in 1879, Des Moines became headquarters for Younker Brothers. In 1881 it became the first Des Moines store to hire female sales clerks, and in 1900 this store moved to its location at Seventh and Walnut Streets and remained opened until 2005. Younker Brothers was a place to meet as well as to shop. Women lunched at the elegant Tea Room upstairs and teenagers took their dates there for dinner and dancing. Just about every organization in town met at the Tea Room. The store even had a knitting classroom. It installed Iowa's first escalator in 1939 and was the first department store in the United States to air condition its entire building.

Younker Brothers grew by acquiring Grand Department Store in 1912, Wilkins Department Store in 1923, and J. Mandelbaum & Sons in 1928. Originally incorporated in 1904, it merged with Harris-Emery Co. in 1927, thereby becoming the largest department store chain in Iowa, and reincorporated under Delaware law. Its net sales (excluding leased departments) rose from $8.4 million in 1938 to $26.4 million in fiscal 1948 (the year ended January 31, 1948). Net profit rose in this period from a low of $308,000 in 1939 to a high of nearly $2 million in fiscal 1947. At the end of 1947 it acquired a Sioux City, Iowa store from Davidson Brothers Co. and had, since 1941, opened branch stores in Ames, Fort Dodge, Marshalltown, and Mason City. Younker Brothers went public in December 1948 to retire bank loans, offering a minority of its common stock at $26 a share. Much of its stock remained in the hands of three Des Moines merchandising families: the Frankels, Mandelbaums, and Rosenfelds.

As the largest store in Iowa, the Younkers of this period carried the old adage that the customer is always right beyond the call of duty. A Business Week article cited the case of a lady who brought back her fur coat, complaining it did not fit, after allowing her weight to balloon over the winter. The store remodeled it without argument. Morey Sostrin, president and general manager, said, "We figure that the advertising value of such cases in small towns in Iowa is worth far more than the adjustment cost." Younkers was known for liberal credit policies (including 60,000 charge accounts) and a mail-order service. It also was running three Des Moines restaurants.

During the 1950s Younker Brothers acquired another Sioux City store and opened branch stores in Iowa City, Oskaloosa, and Ottumwa, Iowa; Omaha, Nebraska; and Austin, Minnesota. The Omaha store, opened in 1955, was its first in a shopping center. Net sales, after reaching $45.5 million in fiscal 1956, slumped to $37.1 million the next year and did not surpass the 1956 figure until 1962. Net income dropped from $2.4 million in 1956 to $1.4 million in 1957 and did not top the 1956 figure until 1965. In 1961 the company acquired Kilpatrick's Department Store of Omaha.

Although the biggest downtown department store in Des Moines, the Younkers flagship retained a reputation for "small town friendliness." This six-story, 400,000-square-foot, block-long building was responsible for 42 percent of corporation sales in fiscal 1965. At the end of the decade, in addition to the main Des Moines and Sioux City stores, there were 16 Younkers branch stores in Iowa, more than half in major shopping centers. Net sales (including leased departments) reached a record $83.5 million in fiscal 1970, and net profit was a record $3.8 million. Apparel was accounting for nearly 80 percent of sales, with home furnishings, furniture, and appliances next in importance. Dividends had been paid each year since 1935. The long-term debt was $10 million.

By 1978 Younkers had added branch stores in Des Moines and Davenport, Iowa; Moline, Illinois; and Sioux Falls, South Dakota, plus a main store in a Cedar Rapids shopping center and the Merle Hay Mall in Des Moines, which had a separate store for homes. This last store was destroyed by a fire that year in which ten employees were killed. Net sales came to $135.5 million in fiscal 1978, and net profit amounted to $5 million. In 1979 Equitable of Iowa purchased Younker Brothers for $72.2 million and made the retailer a subsidiary named Younkers. Des Moines breathed a sigh of relief, since Equitable was controlled by Iowa's first family, the Hubbells. "The loss of an independently-owned business always is sad," the Des Moines Tribune declared in an editorial. "But the acquisition of Younkers by another Des Moines-based firm avoids the drawbacks of absentee ownership and promises to be good for the community."

The Younkers chain of 29 stores (25 in Iowa) grew slowly during the next four years. Sales increased from $141.9 million in 1979 to $188.7 million in 1984. After net income slumped from $4.8 million in 1983 to only $723,000 in 1984, William Friedman, Jr., a descendant of the group of families that had controlled Younkers since the 1920s, was ousted as president and chief executive officer, allegedly for alienating customers by turning Younkers into an upscale boutique. The Ottumwa store was closed, and 200 jobs were eliminated.

Under W. Thomas Gould, who first assumed the presidency and later became chief executive officer as well, Younkers shifted its focus back to the middle class. It updated its "Satisfaction Always" motto, adopted in 1936, to stress customer service even more than previously. Although not paying a commission on sales, the company adjusted wage rates every six months on a sales-per-hour basis. Salespeople were expected to acknowledge a customer within 30 seconds of arrival in a department at a distance of no more than 30 feet. Gould closed eight of the 37 Younkers stores that he felt were too small in markets that offered little growth opportunity, and he eliminated the chain's only furniture store.

Net income improved appreciably in 1986, and at the end of the year Younkers agreed to purchase a major competitor, Brandeis & Sons, which was operating 11 department stores in Iowa and Nebraska. This acquisition boosted Younkers' revenues by almost $100 million, and in 1988 the 37-store chain earned a record $8.3 million on revenues of $313.4 million. Gould and other Younkers managers chafed under Equitable's direction, however, because its profits were absorbed by the parent organization instead of being earmarked for expansion, which company managers felt was needed to generate the economies of scale needed to compete with Kmart and Wal-Mart on price. Between 1985 and 1992 Younkers paid Equitable about $63 million in dividends.

In June 1989 Equitable announced its intention to sell Younkers but rejected offers of about $90 million as inadequate. Sales grew slowly in subsequent years, but after the company earned a record $12.8 million on sales of $330 million in 1991, almost all of the common stock was put on the market at $12.50 a share. Some of the proceeds from the 6.17 million shares sold in 1992 were used to reduce Younkers' long-term debt from $104 million to $89 million.

Gould, who as chairman remained at the helm of Younkers, continued to stress customer service. Interviewed by Daily News Record [DNR] in 1992, he said, "The '80s were merchandise and marketing driven. The '90s are customer driven. ... We have to totally reverse the hierarchy of the '80s where the buyers and merchandisers were on top and the sales associates were on the bottom." His philosophy was to stress basics rather than trendy but unsuitable merchandise. "Former management thought the American consumer had gotten thin and rich overnight," Gould told a Business Week reporter. In fact, the average female customer was consuming so many calories that Younkers was making one-quarter of its women's apparel sales in sizes 14 and higher and, therefore, was featuring large women in its catalog and fashion shows.

During fiscal 1992 (ended January 30, 1993) Younkers had net earnings of $17.6 million on net sales of $473.4 million. In April of that year Younkers purchased the department store division of financially troubled H.C. Prange Co., a privately owned chain with 25 stores, 18 of them in Wisconsin, for $67 million in cash and assumption of $9 million in debt. Prange proved harder to digest than expected, however, and although Younkers' sales rose to $597.9 million in fiscal 1993, net earnings fell to $12.2 million and, on an earnings-per-share basis, only half the previous year's level. During fiscal 1994 sales and earnings barely rose. The value of a share of Younkers stock fell from a high of $32.50 in 1993 to $12.25 in June 1994, making the company vulnerable to a takeover by a bigger store chain.

A battle royal for control of Younkers broke out in 1994, when Milwaukee-based retailer Carson Pirie Scott & Co. made an unsolicited $152 million ($17 a share) takeover bid for the company. Carson already held 12 percent of the stock. Younkers not only rejected the bid as inadequate but adopted a poison-pill defense intended to make the acquisition prohibitively expensive.

Undeterred, Carson raised its bid to $19 a share in 1995 and won a nonbinding resolution from Younkers shareholders to put the company up for sale to the higher bidder, but Younkers' board voted not to sell. Carson, which would have closed Younkers' headquarters and the downtown Des Moines store, then sued Younkers' directors for "gross breaches of fiduciary duty."

By late 1995 Younkers' position was more attractive to alternative offers, because the former Prange stores had become an asset, accounting for more than 40 percent of the company's total sales. In February 1996 the company quickly accepted a $24-a-share, $216 million offer from Proffitt's, Inc., a department store chain based in Tennessee. Younkers, which became a Proffitt's subsidiary as well as a division, preserved its name and much of its independence, although about one-fifth of the jobs at Des Moines headquarters were eliminated. (The flagship Des Moines store, a money loser, remained open only because of a city financial aid package.) Even Carson voted its shares in favor of the merger.

Gould became vice-chairman of Proffitt's, yielding the CEO position at Younkers to Robert Mosco. Mosco resigned in October 1996 to become president of Proffitt's newly formed Merchandising Group. Three unproductive Younkers stores were closed in 1996, and two others were sold to a third party. New Younkers units were scheduled to open, however, in Iowa City, Iowa, and Grandville, Michigan, in 1998. During fiscal 1997 (ended February 3, 1997) women's apparel accounted for 32 percent of Younkers' sales, men's apparel for 16 percent, home furnishings for 16 percent, and cosmetics for 11 percent. Children's apparel, accessories, leased departments, lingerie, and shoes accounted for the remainder of the division's sales, in that order.

Despite fending off advances from Carson Pirie Scott & Co. in 1995, Younkers found itself inextricably linked to the company in 1998 after its parent acquired the chain in February 1998. Later that year, Proffitt's shelled out $2.1 billion to acquire Saks Holdings Inc. and adopted the Saks Incorporated corporate moniker.

As a Saks subsidiary, Younkers continued its slow and steady growth. In 1999, the company set plans in motion to open a store in Muskegon, Michigan. It also opened two new stores in Lansing and Okemos, Michigan. At the same time, unprofitable stores began to shut their doors. Its location in Bettendorf, Iowa, closed and the Younkers on College Avenue in Appleton, Wisconsin, shut down.

In the early years of the new millennium, competition was fierce for department store operators. An increase in sales at discounters like Wal-Mart and Kohl's as well as specialty retailers began to hurt Younkers' business. As such, Saks took several measures to shore up the company's profits. Younkers left its home in Des Moines as company headquarters were moved to Wisconsin during the latter half of 2002 and into 2003. Almost 300 jobs were cut as part of the reorganization. The company's merchandising, advertising, marketing, and other support functions were integrated into Carson Pirie Scott & Co.'s operations.

At the same time, several of Younkers' stores were shuttered. Its location at the Crossroads Mall in Omaha, Nebraska closed. The company also said goodbye to its flagship store in downtown Des Moines in August 2005. The location had proved to be unprofitable and its closure was part of Carson Pirie Scott & Co.'s strategy to focus on its most productive and profitable locations.

During this time period, profits at Saks were falling. To top it off, the U.S. Securities and Exchange Commission had launched an investigation into the company's accounting practices. Several Saks executives were fired as a result of the investigation, which found that the company had improperly collected allowances from several of its vendors. Saks was operating with two main business segments at this time: the Saks Department Store Group (SDSG) and Saks Fifth Avenue Enterprises (SFAE), which included the Saks Fifth Avenue stores, Saks OFF 5th stores, and saks.com.

During 2005, Saks decided to focus solely on its high-end SFAE business and began to look for buyers for the stores in its SDSG segment. As such, Saks began to entertain offers for its Northern Department Store Group, which included Younkers, along with Herbeger's, Carson Pirie Scott, Bergner's, and Boston Store. Bon-Ton Stores Inc. swooped in with a $1.1 billion offer in October 2005. Bon-Ton, which had used acquisitions to fuel much of its growth throughout its history, would double in size as a result of the purchase. Saks and Bon-Ton were expected to close the deal in the coming months. With a new parent company on the horizon, only time would tell what was in store for Younkers in the years to come.

Principal Competitors

Federated Department Stores Inc.; Marshall Field's; Sears, Roebuck and Co.

Further Reading

Byrne, Harlan S., "Younkers," Barron's, September 13, 1995, pp. 35-36.

Chandler, Susan, "This Takeover Goes Way Past Hostile," Business Week, July 3, 1995, pp. 72-73.

"City Store Wins State Buyers," Business Week, May 28, 1949, pp. 56-58.

Couch, Mark P., "Peeking into Younkers' Executive Suite," Business Record, May 2, 1992, p. 1.

Day, Bill, "What's Next for Proffitt's?," Des Moines Business Record, July 27, 1998, p. 22.

Dewitte, Dave, "Downtown Des Moines Younkers Store to Close," The Gazette, June 4, 2005.

"The Dismantling of Saks," Women's Wear Daily, July 5, 2005.

"Equitable of Iowa Says Friedman Removed As Younkers Chief," Wall Street Journal, January 4, 1985, p. 24.

"Equitable Puts Younkers Chain on the Block," WWD (Women's Wear Daily), June 1, 1989, pp. 1, 11.

Ford, George C., "Younkers Owner Still Exploring Sale of Chain," Knight Ridder Tribune Business News, October 19, 2005.

Hajewski, Doris, "Headquarters Could Grow in Deal," Milwaukee Journal Sentinel, November 1, 2005.

Hartnett, Michael, "Younkers," Stores, March 1993, pp. 16, 18, 20.

"Insurance Firm Agrees to Buy Younker Bros.," Daily News Record, August 4, 1978, p. 3.

Kasler, Dale, "Surprise Bid Puts Younkers on the Market," Des Moines Register, October 29, 1994, 1A, 6A.

------, "Tom Gould, CEO," Des Moines Register, November 7, 1993, pp. 1G, 7G.

------, "Younkers," Des Moines Register, February 3, 1996, pp. 12S, 11S.

------, "Younkers Becomes a Part of Proffitt's," Des Moines Register, February 3, 1996, pp. 1A, 10A.

------, "Younkers Bid Caps Year of Troubles," Des Moines Register, October 30, 1994, pp. 1A, 7A.

------, "Younkers President Taking New Job," Des Moines Register, October 26, 1996, pp. 12S, 7S.

Oliver, Suzanne, "Milan Proposes, Des Moines Disposes," Forbes, July 19, 1993, pp. 88, 92.

Poxon, Jeffrey, "Younker Brothers, Inc.," Wall Street Transcript, January 10, 1972, p. 26,774.

Schuyler, David, "Saks to Move Younkers HQ to Milwaukee Office," Business Journal of Milwaukee, October 1, 2002.

Sharoff, Robert, "An Independent Voice in the Midwest," DNR (Daily News Record), February 3, 1992, p. 16.

Sloane, Leonard, "Iowa's Younkers: Friendly Store," New York Times, April 11, 1966, pp. 55, 59.

"Two Younkers Are Better Than One," Birmingham Business Journal, September 26, 2002.

— Robert Halasz; Updated by Christina M. Stansell


 

Simonov Soviet or Chinese made semiautomatic 7.62 x 39 mm rifle. Standard Viet Com infantry rifle with a distinctive sound and high accuracy.

 
SKS
SKS_Flickr.jpg
Type Carbine
Place of origin Soviet Union
Production history
Designer Sergei Gavrilovich Simonov
Designed 1945
Variants Chinese SKS; Yugoslavian PAP; Romanian SKS; Albanian SKS; East German SKS; (North) Vietnamese SKS; North Korean SKS
Specifications
Weight 3.85 kg (8 lb 8 oz)
Length 1,021 mm (40.2 in)
Barrel length 521 mm (20.5 in)

Cartridge 7.62 x 39 mm
Action Short stroke gas piston, tilting bolt, self-loading
Rate of fire Semi-automatic
Muzzle velocity 735 m/s (2,410 ft/s)
Effective range 400 m (433 yd)
Feed system 10 round internal box magazine, 10-round stripper clip-fed or individual round loading
Sights Hooded post front sight, tangent notch rear sight to 1,000 meters

The SKS is a Russian semi-automatic carbine, designed in 1945 by Sergei Gavrilovich Simonov. SKS is an acronym for Samozaryadniy Karabin sistemi Simonova (Russian: Самозарядный карабин системы Симонова), 1945 (Self-loading Carbine, Simonov's system, 1945), or SKS 45. It was originally planned to serve as the new standard issue weapon for the Soviet military forces, alongside Mikhail Kalashnikov's new AK-47 design, to replace the Mosin-Nagant series of bolt-action rifles and carbines that had been in service since 1891, chambered for the expensive 7.62 x 54 mm R. As mass production of AK-pattern rifles increased, the SKS carbine was soon phased out of first-line service. The carbine was quickly replaced entirely by the AK-47, but remained in second-line service for decades afterwards, and remains a ceremonial arm even today. It was widely exported and produced by the former Eastern Bloc nations, as well as China, where it was designated the "Type 56" (and, in modified form, the "Type 68"), East Germany as the "Karabiner S" and in North Korea as the "Type 63" It is today popular on the civilian surplus market in many countries.

The carbine was chambered for the then-new 7.62 x 39 mm M1943 round, an intermediate cartridge which went on to be used in the Kalashnikov-series weapons.

Technical Specifications

The SKS has a conventional carbine layout, with a wooden stock and no pistol grip. Most versions are fitted with an integral folding bayonet which hinges down from the end of the barrel, and some versions, such as the Yugoslavian-made M59/66 variant, are equipped with a grenade launching attachment. As with the American M1 Carbine, the SKS is shorter and less powerful than the semi-automatic rifles which preceded it - most notably, the Soviet SVT series and the American M1 Garand. Contrary to popular belief it is not a modern assault rifle. This is because it does not meet all of the criteria of a true assault rifle (though there are some variants that fall closer to the definition). It does not possess the capability for selective fire, and the basic design does not possess a removable magazine. Some selective-fire variants were produced in the PRC; however, the basic design of the SKS is semi-automatic in nature. The carbine's ten-round box magazine is fed from a stripper clip (see below), and rounds stored in the magazine can be removed by depressing a magazine catch (thus opening the "floor" of the magazine and allowing the rounds to fall out) located forward of the trigger guard.

Design

Chinese SKS (Type 56 semi-automatic carbine)
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Chinese SKS (Type 56 semi-automatic carbine)

A standard SKS is semi-automatic and has a fixed/hinged 10 round magazine which is loaded from the top of the rifle either by manually inserting the ammunition one round at a time or with a 10-round stripper clip. In typical military use, the stripper clips are disposable, although they may actually be reloaded many, many times and reused if necessary. The SKS is a gas-operated weapon that has a spring-loaded operating rod and a gas piston rod that work the action via gas pressure pushing against them. Also, it has a "tilting bolt" action locking system. Some variants of the SKS have been modified, with limited success, to accept AK-47 detachable magazines (military rifles designed with fixed magazines often experience feed jams when modified to accept detachable magazines, and the SKS is no exception). Norinco had, at one point, manufactured the SKS-M, SKS-D, and MC-5D models which were engineered from the factory to accept AKM magazines without problems (though the wood stock must be relieved to accept drum magazines). The SKS also has a slightly longer barrel than AK-series rifles, with a fractionally higher muzzle velocity.

While early Russian models had spring-loaded firing pins, most variants of the SKS have a free floating firing pin within the bolt. Because of this design, care must be taken during cleaning (especially after long storage) to ensure that the firing pin does not stick in the forward position within the bolt. SKS firing pins that are stuck in the forward position have been known to cause accidental "slamfires" (uncontrolled automatic fire that empties the magazine, starting when the bolt is released). This behavior is less likely with the hard primer military-spec ammo for which the SKS was designed, but as with any rifle the user should properly maintain his firearm. For collectors, slamfires are more likely when the bolt still has remnants of cosmoline embedded in it. The firing pin is triangular in cross section, and slamfires can also result if the firing pin is inserted upside down. The firing pin should be dry, and should rattle loosely back and forth inside the bolt when the removed bolt is shaken longitudinally. At most, a light weight lubricant (e.g., Eezox, BreakFree CLP, or Remington's Rem-Oil) can be used when reassembling the bolt. Dry-firing the SKS repeatedly may also make slamfires more likely. The firing pins of most SKSs can be modified with a spring to resemble the early Russian models if the owner desires such, as several aftermarket sources exist that sell a conversion kit.

In most variants (Yugoslav models being the most notable exception), the barrel is chrome lined for increased wear and heat tolerance from sustained fire and to resist corrosion from chlorate primed corrosive ammunition, as well as to facilitate cleaning. Chrome bore lining is common in military rifles. Although it can diminish practical accuracy, this is not a real limit on field grade accuracy in a weapon of this type.

All military SKSs have a bayonet attached to the underside of the barrel, which is extended and retracted via a spring-loaded hinge (some are removable whereas some are permanent). The SKS is easily field stripped and reassembled with no tools. The rifle has a cleaning kit stored in a trapdoor in the buttstock, with a cleaning rod running under the barrel, in the same style as the AK-47. In common with other Soviet-era designs, the SKS trades accuracy for ruggedness, ease of maintenance, ease of use, and low manufacturing cost. The SKS has a slightly longer barrel than AK-pattern rifles, with a fractionally-higher muzzle velocity. The SKS is a simple design that is highly effective and rugged.

For some shooters, the rear sight on the SKS has too small a notch for accurate shooting, even in good light. Replacement with an inexpensive peep sight is easy and popular. Another popular, and even less expensive workaround for this issue is to apply a tiny amount of bright colored nail polish to the front sight post (or replace the front sight post altogether with a bright colored secondary market (commercial) post. For other shooters, the original buttstock is too short. However, this can be easily extended with buttstock pads, or the stock replaced with a better fitting composite buttstock as well. Some may also buy a custom receiver cover that is grooved to accept a scope, although this arrangement is not known to be especially accurate, as the receiver cover must always be removed each time the rifle is cleaned.

History

AK-47 at top, and SKS
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AK-47 at top, and SKS

During World War II, many countries realized that existing rifles, such as the Mosin-Nagant, were too long and heavy and fired overly powerful cartridges, creating excessive recoil. These cartridges, such as the 7.92 x 57 mm, .303 British, .30-06 Springfield, and 7.62 x 54R were effective to ranges of up to 2,000 meters (2,200 yd); however, it was noted that most firefights took place at maximum ranges of between 100 meters (110 yd) and 300 meters (330 yd). Both the Soviet Union and Germany realized this and designed new weapons for smaller, intermediate-power cartridges. The German approach was the production of a series of intermediate cartridges and rifles in the interwar period, eventually developing the Maschinenkarabiner, or machine-carbine, which later evolved into the MP44 Sturmgewehr, or "assault rifle" chambered in the 7.92 x 33 mm intermediate round.

Meanwhile the Soviets produced an entire family of weapons designed around the new 7.62x39mm M1943 cartridge, which was probably developed from the late 1930s German GeCo cartridge[1]. Among these were a bolt-action carbine, which was never produced beyond the prototype; a select-fire assault rifle which became the AK-47; a light machine-gun or squad automatic weapon which became the Degtyarov RPD, and a semiautomatic carbine, which became the SKS. A small number of SKS rifles were tested on the front line in early 1945 against the Germans in World War II. [2]

Design-wise, the SKS relies on the AVS-36 (developed by same designer) to a point that some consider it a shortened AVS-36, stripped of select-fire capability and rechambered for the 7.62x39mm cartridge[1]. It also owes heavily to the earlier SVT-40 and M-44 Mosin-Nagant rifles that it replaced, incorporating both the semiautomatic firepower of the SVT (albeit in a more manageable cartridge) and the small, fast-handling size and integral bayonet of the bolt-action carbine.

In 1949, the SKS was officially adopted into the Soviet Army, produced at the Tula Armory from 1949 until 1955 and the Izhevsk Armory in 1953 and 1954. Although the quality of Russian SKS rifles manufactured at these state-run arsenals was quite high, its design was already obsolete compared to the Kalashnikov which was selective-fire, lighter, had three times the magazine capacity, and had the potential to be less labor-intensive to manufacture. Gradually over the next few years, AK-47 production increased until the extant SKS carbines in service were relegated primarily to non-infantry and to second-line troops. They remained in service in this fashion even as late as the 1980s, and possibly the early 1990s. To this day, the SKS carbine is used by some ceremonial Russian honor guards; it is far less ubiquitous than the AK-47 but both original Russian SKS rifles and copies can still be found today in civilian hands as well as in the hands of third-world militias and insurgent groups.

The SKS was to be a gap-filling firearm produced using the proven operating mechanism design of the PTRS and using proven milled forging manufacturing techniques. This was to provide a fallback for the radically new and experimental design of the AK-47, in the event that the AK were to prove a failure. In fact, the original stamped receiver AK-47 had to be quickly redesigned to use a milled receiver which delayed production, and extended the SKS rifles' service life.

Service

1968, A Viet Cong soldier crouches in a bunker with an SKS rifle.
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1968, A Viet Cong soldier crouches in a bunker with an SKS rifle.

Although the SKS was a front-line Soviet issued rifle for only two years, it played a documented role in the two major Cold War conflicts - the Korean War and the Vietnam War [3] - and several subsequent 'dirty wars'. The SKS fell out of service amongst its client nations during the 1960s and 1970s, although the Chinese police and military forces continued to use it during the 1980s, and chromed, polished ceremonial versions are still used today in parades. Many surplus SKS rifles were disposed of in the 1990s, and photographs and stories exist of SKS rifles used by guerilla fighters in Bosnia, Somalia and throughout Africa and South-East Asia [4] during the 1990s and 2000s.

During the Cold War, Russia shared the design and manufacturing details with its allies. Therefore, many variants of the SKS exist. Some variants use a 30-round AK-47 style magazine (Chinese Type 68 and 68/72, also known as "D" & "M" models), gas port controls, flip-up night sights, and prominent, muzzle-mounted grenade launchers (Yugoslav M59/66, possibly North Korean Type 63). In total, SKS rifles were manufactured by Russia, China, Yugoslavia, Albania, North Korea, Vietnam, and East Germany (Kar. S) with limited pilot production (Model 56) in Romania and Poland (Wz49.) Physically, all are very similar, although the NATO-specification 22mm grenade launcher of the Yugoslav version, and the more encompassing stock of the Albanian version are visually distinctive. Early versions of the Russian SKS and later Chinese Type 56s (produced 1965-71) used a spike bayonet, whereas the majority use a vertically-aligned blade. Many smaller parts, most notably the sights and charging handles, were unique to different national production runs. A small quantity of SKS carbines manufactured in 1955-56 were produced in China with Russian parts, presumably as part of a technology sharing arrangement. Many Yugoslav M59/66 series rifles were exported to Uruguay and Mozambique[citation needed]; the Mozambique versions having teakwood stocks, the wood supplied by that nation. The vast majority of Yugoslav M59 and M59/66s have elm, walnut and beech stocks. SKS carbines have also made appearances in recent conflicts in Africa, Afghanistan, and Iraq.

Nations that utilized the SKS but did not receive manufacturing rights included Afghanistan, Congo, Indonesia, Iraq, Laos, Lebanon, Mongolia, Morocco, the United Arab Republic (Egypt) and the Yemen People's Democratic Republic.

The SKS has also been featured prominently around the world during times of civil unrest. In the United States, the SKS was used successfully by Korean shopkeepers to fend off looters during the 1992 Los Angeles riots.

A sporterized hunting version of the SKS is still manufactured in Yugoslavia, by the Zastava Armory. It is designated the LKP 66[5], and features a "Monte Carlo" style one-piece stock, receiver mounted scope mount, modified trigger, and flush-fit 7 round magazine. It also has a redesigned front sight with no bayonet mount. This rifle has not yet been imported into the US.

Variants

Yugoslavian M59/66 with grenade launcher on muzzle and "ladder" grenade sight
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Yugoslavian M59/66 with grenade launcher on muzzle and "ladder" grenade sight

After World War II, the SKS design was licensed or sold to a number of the Soviet Union's allies, including China, Yugoslavia, Albania, North Korea, Vietnam, East Germany, Romania and Poland. Most of these nations produced nearly identical variants, with the most common modifications being differing styles of bayonets and the 22mm grenade launcher commonly seen on Yugoslavian models.

NOTE: All SKS variants except for the Yugoslav M59/66 are carbines. This is due to the additional length that the flash hider/grenade launcher attachment gives to the SKS.

Differences from the "baseline" late Russian Tula Armory/Izhevsk Armory SKS:

  • Early (1949-1951) Russian: Spike-style bayonet instead of blade-style. Squared-off gas block instead of the rounded one more commonly seen. Spring-return firing pin on earliest models.
  • Soviet Honor Guard: All-chrome metal parts, with a lighter-colored wood stock.
  • Chinese Type 56: Numerous minor tweaks, including lack of milling on the bolt carrier, partially or fully stamped (as opposed to milled) receivers, and differing types of thumb rest on the takedown lever. The Chinese continually revised the SKS manufacturing process, so variation can be seen even between two examples from the same factory. All of the Type 56 carbine rifles have been removed from military service, except a few being used for ceremonial purposes. Type 56 carbines with serial numbers below 9,000,000 have the Russian-style blade-type folding bayonet, while those 9,000,000 and higher have a "spike" type folding bayonet.
  • Chinese Honor Guard: Mostly, but not all, chromed metal parts. Does not generally have the lighter-colored stock as the Soviet Honor Guard variant.
  • Chinese Type 63, 68, 73, 81, 84: Only a close relative to the SKS, these rifles shared features from several east-bloc rifles (SKS, AK-47, Dragunov). AK-47 style rotary bolt and detachable magazine. The Type 68 featured a stamped sheet-steel receiver. The 81 is an upgraded Type 68 with a three-round burst capability, some of which (Type 81-1) have a folding stock. The Type 84 returns to semi-auto fire only, is modified to accept AK-47 magazines, and has a shorter 16" paratrooper barrel.
  • Chinese commercial production: Blonde wood stock instead of dark wood, spike bayonet instead of blade, bayonet retaining bolt replaced with a rivet. Sub-variants include the M21, "Cowboy's Companion", Hunter, Models D/M, Paratrooper, Sharpshooter, and Sporter. Model D rifles used military style stocks and had bayonet lugs (although some were imported minus bayonet, and a small few minus the lug in order to meet changing US import restrictions). Model M rifles had no bayonet lug and used either a thumbhole or monte-carlo style stock. Both model D and M used AK-47 magazines and as a result had no bolt hold open feature on the rifle.
  • Romanian: Typically nearly identical to the late Russian model.
  • Polish Honor Guard: Possibly refurbished rifles given to Poland by Russia. Polish laminated stocks lack storage area in back of stock for cleaning kit. Note: 200 SKS's were given to Poland by Russia in 1954 and are still in use. Despite false claims there are no examples in any military arms collections in the USA, only examples made up from surplus stocks that were sold on www.gunbroker.com in 2006.
  • Yugoslavian PAP M59: Barrel is not chrome-lined. PAP means "Polu-automatska puška" (Semi-automatic rifle) and the rifle was nicknamed "Papovka".
  • Yugoslavian PAP M59/66: Added 22mm grenade launcher which appears visually like a flash suppressor or muzzle brake on the end of the barrel. Front sight has a fold-up "ladder" for use in grenade sighting (main sights have flip up phosphorus or tritium night sights). Barrel is not chrome-lined. Both the grenade launcher and grenade sight are NATO spec. Stock is typically made from beech wood.
  • Zastava Arms LKP-66: Hunting version. No bayonet or bayonet lug. Sporting stock. Scope mount. 7 round magazine.
  • Albanian "July 10 Rifle": Longer stock and handguard on the gas tube, and AK-47 style charging handle.
  • East German Karabiner-S: Extremely rare; never exported to the US. Slot cut into back of stock for pull-through sling. No storage area in back of stock or storage for cleaning rod under barrel.
  • North Korean Type 63: Extremely rare; never exported to the US. At least three separate models were made. One "standard" model with blade bayonet, and a second with a gas shutoff and a grenade launcher, similar to the M59/66. The North Korean grenade launcher was detachable from the muzzle and the gas shutoff was different from the Yugoslavian model, however.[2] A third model appears to have side-swinging bayonet.[3]
  • Vietnamese Type 1: Extremely rare; never exported to the US. Differences unknown.

There is some debate as to the relative quality of each nation's SKS production; Yugoslav types are generally considered to be better made than Chinese, yet the Chinese types typically have chrome lined barrels while the Yugoslav versions do not. East German, Russian and Albanian SKSs bring a higher price than those of other countries, the stock on the Albanian versions being of a slightly different manufacture and being rarer due to low production numbers. There were approximately 18,000 Albanian SKSs manufactured during the late 1960s until 1978, and of those, approximately half were destroyed. Most of the remaining East German SKSs had been sold/transferred to Croatia in the early 1990s.

A sporterized hunting version of the SKS is still manufactured in Yugoslavia, by the Zastava Armory. It is designated the LKP 66, and features a "Monte Carlo" style one-piece stock, receiver mounted scope mount, modified trigger, and flush-fit 7 round magazine. It also has a redesigned front sight with no bayonet mount. This rifle has not yet been imported into the US.

Civilian use

Chinese NORINCO SKS manufactured for the civilian market
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Chinese NORINCO SKS manufactured for the civilian market

The SKS is popular on the civilian surplus market, especially in the United States, where examples range in price from roughly US$$100-$500 as of Jan. 2007 depending on type, history, quality, availability, national origin, and location of purchase. Chinese models have a going rate of $200+ as of Jan. 2007, Russian at $200+. Typically most other models price substantially less than the Russian. Genuine Russian models range in value based on stock composition and accompanying original accessories like cleaning kit, bayonet, oil can, shoulder strap and ammunition pouch. Because of their historic and novel nature, SKS rifles are classified by the BATF as "Curio & Relic" items under US law, allowing them to be sold with features that might otherwise be restricted. Chinese rifles can be easily identified by their markings which are typically referred to as emperor's markings even though there has not been an emperor of China since 1912. The Type 56 Carbine or Chinese SKS (which is the most common) typically cost less because they were so widely mass produced. Because of the massive size of the Chinese People's Liberation Army, over 800 million Chinese SKS rifles were produced during their 20 years of use making the Chinese SKS one of the most mass produced military rifle of all time.

In Australia, the Chinese SKS rifle was very popular with recreational hunters and target shooters during the late 1980's and early 1990's before semi-automatic rifles were banned from legal ownership in 1996. Before the 1996 bans came into existence, many Chinese SKS rifles were being sold for less than $100 AUD. Since the introduction of the 1996 gun bans in Australia, the Mosin-Nagant series of bolt-action rifles and carbines have now filled the void the Chinese SKS had created when it was banned from legal ownership. The Type 84's variants were sold by the crates loads, known as SKK's they were full sized SKS's with 30rd AK magazines.

A sporterized SKS carbine fitted with an aftermarket composite stock and scope rail.
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A sporterized SKS carbine fitted with an aftermarket composite stock and scope rail.

In the early 1990s, the Chinese SKS rapidly became the "poor man's deer rifle" in some Southern areas of the United States due to its low price, lower even than such old favorites in that role as the Marlin 336. Importation of the Chinese SKS into the USA was banned in 1994 though prices have not changed much over the years. In the early 90s they could be bought "new in box" ("NIB") for $69. Today (2007), "NIB", they often go for upwards of $150 or used for around $80 to $125 (in original condition with no modifications).

Due to its low cost and widespread availability and usage, the SKS has spawned a growing market for both replacement parts and accessories. Many aftermarket parts are available to upgrade the rifle — sometimes so considerably that it bears little semblance to the original firearm. This process, known as "sporterizing" (or by the somewhat derogatory term "bubba'd"[4]), may include items such as synthetic buttstocks, extra capacity magazines, replacement receiver covers (which allow the mounting of scopes, lasers, etc.), different muzzle brakes, recoil buffers, and more.

Ballistics

Main article: 7.62 x 39 mm

The 7.62 x 39 mm cartridge fired by the SKS is sometimes said to be roughly equivalent to the Winchester .30-30 round when used as a deer hunting round. However, the 7.62 is sometimes considered inferior to the .30-30 as a hunting cartridge, due to its historical use of relatively lightweight bullets by caliber. At 200+ yards, a 7.62 x 39mm bullet, due to its more aerodynamic shape and slightly higher velocity, will provide a flatter trajectory and will retain more energy than a round nose .30-30. Hollowpoint 7.62 x 39 mm and 154 grain soft point 7.62 x 39mm hunting bullets are available, but 7.62x39 hollowpoint bullets are slightly lighter than maximum grain .30-30 loadings, giving a slight edge to the heaviest .30-30 bullets over 7.62 x 39 mm hollowpoint bullets for close-in hunting in brush amid typical Eastern United States hunting scenarios encountered while hunting for deer. On the other hand, the 154 gr soft point 7.62x39 bullets have a slight advantage over the round nose 150 gr .30-30 bullets, at all ranges beyond approximately 100 yards, due to the spitzer shape of the 7.62x39.

Legal Issues

The carbine's integral 10-round magazine is not an issue in those states and nations which prohibit higher-capacity magazines, except Canada[citation needed], where it must be pinned to 5 rounds. Where higher capacity magazines are legally permitted, there are a number of secondary market vendors that sell higher capacity magazines of up to 30 rounds (or more). These secondary market magazines may be installed by first removing the fixed OEM magazine (a process that involves the removal of the trigger group assembly with a pin punch, screwdriver, bullet-tip, or similar device). In Canada, semiautomatic centerfire rifles and shotguns are limited to hold no more than 5 rounds, although the semi-automatic M1 Garand is exempt from this law. However, the Canadian market's thirst[citation needed] for Yugoslavian SKS rifles was quenched either by permanently blocking the magazine to 5 rounds or by retrofitting the rifles with 5 shot magazines, which is common.

Unlike many other military rifles, the SKS has not attracted a significant degree of negative publicity. Its low price and wide availability make it a popular firearm with collectors and licensed hunters across the United States and Canada. It was widely and incorrectly reported as the murder weapon in the November 2004 shootings of six hunters in the US state of Wisconsin.[6]. The actual firearm was a Saiga (a sporterized AK-47) made by Izhmash and chambered in 7.62 x 39 mm.[5]

SKS rifles with detachable magazines are banned in the states of California and New Jersey.

See also

References

  1. ^ [www.sksboards.com/sksinfo/SARSKS.html]
  2. ^ Pictures of North Korean SKSs (middle of page)
  3. ^ Picture of North Korean SKSs (side swinging bayonet at bottom)
  4. ^ SKS Boards "Lets see your bubba/tacticals", retrieved 24 Feb 2007
  5. ^ Scanned police report from shooting

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