Years ago, Heckler & Koch was deep in the red. Now the company is making big money again with its handguns. In 2022, the gunsmith recorded better business than ever before. And this year?
After years of strong growth, the weapons manufacturer Heckler & Koch has suffered a setback. As the company announced on Monday in Oberndorf am Neckar, sales in the first nine months of this year were 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.
Chief Financial Officer Andreas Schnautz justified the development with negative currency effects and generally high comparative values - 2022 was the best financial year in the company’s history, which was also due to the successful reduction of debt. The US market was booming. In 2023, however, demand for pistols weakened somewhat.
Overall, H&K said it is at the level of 2021. However, the manufacturer of assault rifles, machine guns, pistols and grenade launchers has to make compromises even in this comparison: Back then, the operating profit was slightly higher – meaning the business was more profitable than it is now. Manager Schnautz pointed out a special effect: If you exclude research and development depreciation, the operating result so far would be higher than in 2021.
Solidly positioned
The CFO expects an increase in sales for the fourth quarter of 2023. “We are very solidly positioned and are still going strong.” He also emphasized the positive prospect of regular income from large contracts: H&K is equipping the French army with assault rifles, with deliveries taking place gradually year after year. The same applies to the Bundeswehr, in 2025 H&K wants to deliver the first large batch of a total of 120,000 assault rifles as the successor to the G36 used so far. Delivery extends over seven years.
The largest German manufacturer of handguns has around 1,100 employees. Customers include authorities – military and police – as well as civilians; the US market is particularly important here. Competitors include Beretta from Italy, FN Herstal from Belgium, the Czech CZ Group including its American subsidiary Colt and the US manufacturer Smith & Wesson.
Source: Stern
