ROTTWEIL (dpa-AFX) - Germany's largest manufacturer of handguns, Heckler & Koch, has posted significantly lower profits at the beginning of the year. According to a company statement on its website, net profit in the first quarter of 2024 fell to 2.4 million euros, only a quarter of the comparable figure at the beginning of 2023 (10.0 million euros). Meanwhile, turnover increased by EUR 1.8 million to EUR 75.0 million, meaning that the business became significantly less profitable than before.

A company spokesperson explained the development with seasonal fluctuations. For some orders, the delivery dates and therefore the effects on turnover and profits were outside of the first quarter. "We were on a very positive growth path in the second quarter." No figures have yet been published.

The company, which is hosting its Annual General Meeting in Rottweil this Tuesday (10 a.m.), manufactures assault rifles, machine guns, pistols and grenade launchers - in other words, weapons that a soldier can carry. H&K does not manufacture larger military equipment. After the company was in crisis in the past decade, things started to look up in 2018. In 2022, H&K recorded the best financial year in its history; in 2023, turnover stagnated at just over 300 million euros and net profit fell by 43% to 28.7 million euros. Nevertheless, the management was satisfied, as the level of business remained high. However, it is now apparent that the downward trend in profits continued at the beginning of this year.

Other arms manufacturers benefit more from the Ukraine effect

While the war in Ukraine triggered a strong surge in demand for armaments companies such as Rheinmetall, the impact on Heckler & Koch was limited - the focus of Western countries' support for Ukraine was on large military equipment and ammunition, such as tanks, air defense and 155-millimeter artillery shells. Small arms - i.e. small firearms - did not have the highest priority in terms of deliveries.

One exception is the company Dynamit Nobel Defense (DND) from North Rhine-Westphalia, which has already supplied Ukraine with 13,000 RGW 90 anti-tank rifles, according to a list from the German government. According to the list, Heckler & Koch only supplied 100 grenade launchers, 100 machine guns (MG5) and 500 pistols. The small competitor C.G. Haenel from Thuringia supplied around 2200 rifles.

H&K's share of direct German aid to Ukraine is rather small. Nevertheless, it has benefited from the consequences of the Russian threat that became apparent in 2014 with the annexation of Crimea, with countries such as Norway purchasing significantly more in the years that followed./wdw/DP/zb