Germany’s largest small-arms manufacturer, Heckler & Koch, has seen its profits soar.
The company said in a statement issued on Thursday that profit after tax rose to €20.1 million ($23.4 million) in the first quarter. That is an increase of around 255% compared to the same period of the previous year, meaning it more than tripled.
According to the figures, turnover rose by 57% to €128.1 million during the period.
Order intake was also significantly higher than before, so the company is likely to continue benefiting in the coming years as it supplies weapons to NATO armies under long-term supply contracts.
For instance, Germany's army is gradually receiving 80,000 new assault rifles to replace the outdated G36. The figure is likely to rise, as a framework agreement allows for orders of a further 170,000 rifles.
Looking ahead to the rest of the year, the arms manufacturer sees itself as "strategically well positioned," according to a statement.
"We are excellently positioned both operationally and industrially," said chief executive Jens Bodo Koch.
"The high demand confirms our strategy and our investments in capacity, technology and infrastructure."
Chief financial officer Andreas Schnautz said, "Through targeted investments, we are laying the foundations to sustain our growth in the long term and further expand our competitiveness."
Heckler & Koch manufactures assault rifles, machine guns, pistols, submachine guns and grenade launchers.
The company had 1,340 employees at the turn of the year. The majority of the workforce is based at the headquarters in Oberndorf in the state of Baden-Württemberg, with smaller sites in the US and the UK.
