Recent hold on accepting new orders for civilian market in Europe was put in place to let HK cope with big contracts they have on hand now and get cashflow from those. Yes, they will loose some civilian sales, but remember that existing orders are still in pipeline. In that scope it would actually be better id HK433 would happen later, than sooner. It is not uncommon for company to be killed by too much sales versus delivery capacity.
Recently received from HK:
Dear Valued Partner,
I find it disappointing, but necessary, that I need to clear up the disinformation circulating in the media following our latest financial report. This narrative is the result of a chain reaction of doom and gloom started by a German news source that has been historically antagonistic toward HK. That one article triggered an initial US report on The Firearm Blog that lacked critical context. From there it just got worse, with each subsequent article sounding more bleak than the last. This culminated in a report from the Military Times that only served to remind us that, while HK is still very much alive, American journalism continues to die a slow and painful death.
Rather than argue about the conclusions of the authors, I would like to simply point out some facts:
Of the three US news stories, none contacted HK for comment for their reports.
The first two US articles (The Firearm Blog, The Outdoor Wire) used a foreign news story as their primary source without questioning their accuracy or motivation.
A third US article (Military Times) used the first two US articles s its primary sources, creating a sensationalized third- or fourth-hand account.
Of the three US articles, none referenced a single number from the HK financial report.
To be clear, HK still remains a leveraged company. This places a burden on the business that non-leveraged companies don’t have. However, we have met and continue to meet all covenants associated with this debt. The full story is easy to find in the financial data the news media neglected to report. Here are some key examples:
From 2014 to the end of 2018, HK’s debt was reduced from 290 million Euros to 235 million and the interest rate on that debt was reduced substantially.
Over the course of 2018 and thus far in 2019, HK reported positive EBITDA in every quarter.
Over that same period, HK’s cash position doubled.
Claims of “diminishing sales” and “difficulty securing new large-scale contracts” are patently false. In fact, the last six quarters for HK have shown record order-intake, including a substantial backlog of large-scale contracts.
HK invested a combined 8.3 million Euros toward increased capacity and efficiency in both the Obendorf, Germany and Columbus, GA facilities in 2018.
The full financial report and other key data can be found at https://www.heckler-koch.com/en/ir/annual-accounts.html and https://www.heckler-koch.com/en/ir/key-figures.html.
At HK, we are committed to supplying and servicing our US partners for many profitable years to come. I can assure you that we are in it for the long haul.
CSO/COO - Heckler & Koch - US
Basically what my friend said by just looking at the numbers.
I'm glad they responded. I noticed the snowballing of this story as it was happening out there on the internet, but nobody would listen to anyone who logically explained all the doom and gloom was unwarranted.
Sent from my Pixel 3 XL using Tapatalk
Thanks for posting here as well SG!
HK stock strong--- close thread!!! :rolleyes:
This is statement from HK is spot on.
"American journalism continues to die a slow and painful death"
I wanna Add something from the German Perspective.
I find it sad that Hk neglects even the German/European market so much. We get the Hk243 and things like the G28Z but thatīs about it. I find it sad that they didnīt bring out a Hk243K or C yet even though i heard that they wanted to make them. The Hk243 is also a funny thing since it came out 20 years after the G36. I really wish that Hk would care more about the civilian market more and not care that much about Military contracts. They could really make a lot of money if they brought back the Hk41 (European Hk91) since lots of shooters served in the armed forces and want to shoot their service rifle and it is a true classic among all gun enthusiasts in Germany. It is our rifle, a rifle of the big 4 in the world but now everything gets just thrown away.
Agree with AGG, this thread need to be filed