Heckler and Koch Survival Forum Ptr 91 Here I Go Again
Heckler & Koch Respond to Concerns About Quarterly Financial Report
Dorsum in May TFB reported on Heckler & Koch's first quarterly financial report for 2019. We reported that the visitor was enjoying a large club intake for both military machine and police force enforcement contracts, many of which we have covered hither on TFB, but also noted the company'south bug with cash flow. Nosotros published Heckler & Koch's argument on the quarterly written report and endeavoured, equally nosotros always practice hither at TFB, to report the news in the most balanced manner possible.
Information technology seems that our original report was picked upward by other outlets and acquired some concerns among affiliated dealers. On June 24th, Heckler & Koch wrote to their partners to explain the situation and have since kindly forwarded us their letter of the alphabet too. With their permission we have published this below:
Dear Valued Partner,
I find it disappointing, only necessary, that I demand to articulate up the disinformation circulating in the media following our latest financial study. This narrative is the result of a concatenation reaction of doom and gloom started past a Germain [sic] news source that has been historically antagonistic toward HK. That one article triggered an initial US study on The Firearm Web log that lacked critical context. From there it only got worse, with each subsequent commodity sounding more dour than the last. This culminated in a report from the War machine Times that only served to remind united states that, while HK is still very much alive, American journalism continues to die a boring and painful death.
Rather that argue nearly the conclusions of the authors, I would similar to just point out some facts:
- Of the three US news stories, none contacted HK for comment for their reports.
- The first two US manufactures (The Firearm Blog, The Shooting Wire) used a foreign news story every bit their chief source without questioning their accuracy or motivation.
- A third US article (Military machine Times) used the first two US articles every bit its primary sources, creating a sensationalized tertiary- or fourth-mitt business relationship.
- Of the 3 Usa articles, none referenced a unmarried number from the HK financial report.
To exist clear, HK still remains a leveraged company. This places a burden on the business that not-leveraged companies don't have. Notwithstanding, nosotros have met and continue to encounter all covenants associated with this debt. The full story is easy to find in the fiscal information the news media neglected to report. Here are some key examples:
- From 2014 to the end of 2018, HK'southward 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 menses, HK's greenbacks position doubled.
- Claims of "diminishing sales" and "difficulty securing new large-scale contracts" are plainly fake. In fact, the concluding half dozen quarters for HK accept shown record order-intake, including a substantial excess of large-scale contracts.
- HK invested a combined 8.iii 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 information can be institute at https://world wide web.heckler-koch.com/en/ir/annual-accounts.html and https://world wide web.heckler-koch.com/en/ir/key-figures.html.
At HK, we are committed to supplying and servicing our The states partners for many profitable years to come up. I tin assure you that nosotros are in information technology for the long booty.
Sincerely,
Michael Holley
CSO/COO – Heckler & Koch – USA
Matthew Moss
_________________________________________________________________________
TheFirearmBlog.com – Managing Editor
OvertDefense.com – Managing Editor
Matt is a British historian specialising in small artillery development and military history. He has written several books and for a diverseness of publications in both the Us and UK. He also runs Historical Firearms, a blog that explores the history, development and apply of firearms. Matt is as well co-founder of The Armourer's Demote, a video series on historically significant small arms.
Here on TFB he covers product and electric current military small arms news.
Reach Matt at: [email protected]
Source: https://www.thefirearmblog.com/blog/2019/06/27/916456/
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