Heckler & Koch with less business
After years of strong growth, weapons manufacturer Heckler & Koch has suffered a setback. As the company announced on Monday in Oberndorf am Neckar, turnover in the first nine months of this year was only 215.4 million euros, 4.5 percent lower than in the same period last year. The operating result (EBIT) fell by 39.1 percent to 32.4 million euros.
CFO Andreas Schnautz explained the development with negative currency effects and generally high comparative figures - 2022 had been the best financial year in the company's history, which was also due to the successful debt reduction. The US market was booming. However, demand for pistols weakened somewhat in 2023.
Overall, the company is at the same level as in 2021, according to H&K. However, the manufacturer of assault rifles, machine guns, pistols and grenade launchers has to make concessions even in this comparison: Back then, the operating result was slightly higher - meaning the business was more profitable than it is currently. Manager Schnautz pointed out a special effect: if research and development amortization is excluded, the operating result would be higher than in 2021.
The CFO expects turnover to grow in the fourth quarter of 2023. "We are in a very solid position and continue to perform strongly." He also emphasized the positive outlook for regular income from large contracts: H&K is equipping the French army with assault rifles, with deliveries taking place gradually year by year. The same applies to the German armed forces: in 2025, H&K intends to supply the first large batch of 120,000 assault rifles as a successor to the G36 used to date. The delivery will extend over seven years.
The largest German manufacturer of handguns has around 1,100 employees; its customers are authorities - i.e. the military and police - as well as civilians, with the US market being particularly important. Its competitors are Beretta from Italy, FN Herstal from Belgium, the Czech CZ Group including its American subsidiary Colt and the US manufacturer Smith & Wesson.
Despite the US market's boom, Heckler & Koch's demand for pistols decreased slightly in 2023, affecting the defense industry's overall performance. The company's weapons, including assault rifles, machine guns, pistols, and grenade launchers, continue to secure significant contracts, such as supplying the French and German armed forces.
Source: www.dpa.com
