armaments company
Armory Heckler & Koch makes significantly more profit
The German arms manufacturer Heckler & Koch is known for its assault rifles. Photo: Bernd Weißbrod/dpa
© dpa-infocom GmbH
The largest German handgun manufacturer already made more profits last year. The war should boost business even more.
The arms manufacturer Heckler & Koch has significantly increased its profit in 2021. The company posted after-tax earnings of EUR 21.8 million last year, 61 percent more than in 2020 (EUR 13.5 million), as announced by H&K in Oberndorf in the Black Forest.
The company made big losses in 2017 and 2018, after which things went uphill. In 2021, sales increased by 5.5 percent year-on-year to EUR 290.2 million, so the company was significantly more profitable than before. “The realignment and modernization of the company in recent years are paying off,” says company boss Jens Bodo Koch.
War boosts demand
H&K makes assault rifles, machine guns, grenade launchers and pistols. With its 1050 employees, the company is the largest handgun manufacturer in Germany. Competitors include Haenel from Thuringia, Sig Sauer from the USA, FN Herstal from Belgium, Beretta from Italy and CZG from the Czech Republic.
The war in Ukraine and its consequences are currently boosting demand for armaments. H&K boss Koch sees this development as a special economic effect, the extent of which cannot yet be estimated. “Demand is likely to rise more sharply in the coming years than we have previously forecast,” says the manager. The first additional inquiries have already been received in the past few weeks. He did not give any more details on this. It is known that H&K supplies assault rifles to Norway, Lithuania and Latvia, among others. Possibly such states increase the volume.
In its own estimation, H&K could quickly master an expansion of capacities through short-term extra orders. “We used simulations to determine what higher demand could mean for our production,” says Koch. The company now knows where to invest what in order to significantly increase output. “We are prepared and well positioned to cover the immediate additional demand.”