Rifles and pistols
Heckler & Koch benefits from higher demand for weapons
Whether assault rifles or machine guns – the demand for weapons is increasing significantly. This gives Germany’s largest manufacturer of handguns a boost. He also announces an acquisition.
As a result of the war in Ukraine, the weapons manufacturer Heckler & Koch is making big money. Sales rose by 17.7 percent to 253.6 million euros in the first nine months of this year, as the arms company in Oberndorf in the northern Black Forest announced. The order books are full: In the first three quarters, order intake shot up to 277.2 million euros and was 46 percent above the previous year’s value.
However, the company was less profitable. The operating result (EBIT) only increased by around 2.5 percent to 33.2 million euros. This is partly due to the attractive “systems business”: HK not only sells the weapon, but also additional components such as silencers and laser light modules. Such resale is less profitable than products manufactured in-house.
Heckler & Koch’s customers include the Bundeswehr and other armies of NATO countries, such as France, Great Britain and Norway. The increase in the Russian threat with the annexation of Crimea in 2014 and the start of the Ukraine War in 2022 has increased the demand for small arms. Baltic states also bought from H&K. The police also purchase weapons from Black Forest armorers. In the USA, sales to private individuals also play a larger role for the company.
The company produces assault rifles, machine guns, grenade launchers and pistols. The headquarters and main factory are in Oberndorf, where H&K has more than 900 employees. The company has a pistol assembly plant in Georgia in the USA with around 100 employees. Including other small locations, the defense company reportedly has a total of around 1,160 employees.
First purchase in a long time
The company also announced the purchase of a company – it is the first major acquisition in a long time: H&K is taking over the Oberndorf-based metal finishing specialist Chrom-Müller and is paying a high single-digit million amount for it, as a company spokesman said.
Chrom-Müller has a good 100 employees and annual sales were recently around 10 million euros. Chrom-Müller is currently a supplier for H&K. The electroplating specialist makes rifle and pistol barrels harder and thus extends the maximum usage time – the “lifespan” – of the weapons. According to H&K, the takeover will secure a key capability in pipe production.
dpa
Source: Stern
