Defense company Heckler & Koch reports significantly more profit

Defense company Heckler & Koch reports significantly more profit

With the sale of assault rifles and other handguns, the armaments company Heckler & Koch has significantly improved its business results and massively increased its profits. As the company announced at its general meeting in Oberndorf, sales in the first half of the year rose by around nine percent to EUR 156.1 million. The profit even rose by around 40 percent or 4.5 million euros to 16 million euros.

CEO Jens Bodo Koch cited “more efficient work processes” as the reason for the better balance sheet. However, it is assumed that growth will “normalize” in the second half of the year due to higher raw material prices.

As with other armaments companies, the consequences of the war in the Ukraine resulted in additional orders for Heckler & Koch. Koch said that existing customers from Northern and Eastern Europe had been reordering since February. He did not name any countries, but it is known that the company has framework agreements for assault rifles with Norway, Lithuania and Latvia. However, the subsequent deliveries caused by the war should not be reflected in sales until autumn at the earliest.

The Black Forest company almost certainly has a major order from the federal government for 120,000 assault rifles to replace the G36 rifles in the Bundeswehr. Originally, the order had gone to the Thuringian CG company Haenel, but after a legal dispute involving alleged patent infringements, Heckler & Koch received the order. The approval of the budget committee in the Bundestag is still missing, but this is considered likely.

After the production of test weapons and a trial phase in the troops, the delivery of the first mass-produced new assault rifles is expected at the end of 2024. The gradual introduction will take several years. Heckler & Koch is the largest German manufacturer of so-called small arms. This includes weapons that can be carried alone, such as assault rifles, machine guns, pistols, and grenade launchers.

(rt/dpa)

more on the subject Big beneficiaries of the Ukraine war: the armaments industry

Source: RT

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