H&K (Germany) has Export Licenses Approved

Jordanian troops with H&K rifles.

The German governments refusal to issue export permits has been putting a strain on Heckler & Koch’s finances. According to a report from Moody’s Investor Services, last week the German government approved exports to Middle Eastern and other non-NATO countries. An extract from the report says

…Last Thursday, the German government approved a number of arms export licences to Middle Eastern and other countries that are not members of the North Atlantic Treaty Organization (NATO). The licence approvals included licences for Heckler & Koch GmbH (Caa3 negative), which is credit positive because they will support the company’s free cash flow. Improved cash flow is essential if the company is to make its 14 million semi-annual interest payments in 2015. Based on the number of weapons cited in the government’s list of licence approvals, we expect the cash effect to be a portion of the 50 million (which equals around 23% of 2013 revenues) worth of Heckler & Koch’s export requests as of June. Nevertheless, it will increase 2014 earnings and most importantly the company’s cash flow in 2014 and early 2015. We previously assumed no contributions from sales requiring export licences in 2014. However, we do not expect these approvals to improve the company’s low unrestricted cash balance

The full report costs $150, more than I am willing to spend. If you buy it, let us know what it says in the comments below.

Thanks to Axel for the tip.

Steve Johnson

Founder and Dictator-In-Chief of TFB. A passionate gun owner, a shooting enthusiast and totally tacti-uncool. Favorite first date location: any gun range. Steve can be contacted here.


  • Mike

    Too little, too late, doesn’t save HK USA…

    • Like HK GmbH cares about HK USA…

      • Zachary marrs

        Like hk cares about anything

        • They have 600 employees, and I imagine some of them care about keeping their jobs. This is good news for them.

          • Zachary marrs

            The employees don’t make management decisions though

          • Obviously.

          • Zachary marrs


    • JumpIf NotZero

      Too little, too late, likely won’t save HK GmbH…

  • echelon

    Awww…and here I thought maybe I could get a G36 “pistol” with an arm brace…

    • KestrelBike

      hahah I’m picturing the G36C with an arm brace… that’s a hell of a ‘pistol’ hehe

      • echelon

        Bingo. 😉

  • Joshua

    Just which countries will they be armong?

  • Oh god, that “Last Thursday”…

  • Thatguy96

    I bet this is to allow H&K send weapons to Iraq and to third-party locations where Iraqi Kurds and Syrian rebels are being trained as part of Germany efforts on that front.

  • USMC03Vet

    Doesn’t HK just sell weapons to nations that don’t use them? Pretty sure Germany’s policy is to allow arms sales to countries not in conflict. Recently they just shit themselves when SIG pistols were in the hands of cops in some South America country because how dare police enforce drug laws.

    • Sadler

      I think more recently, Germany sent, or was talking about sending, weapons to the Kurds in Iraq. From what I remember, that included 4000 HK rifles.

      • Tierlieb

        The main problem with that is usually that these are used rifles. I don’t know for this recent case, but most other countries getting German military aid were not given new guns.

        G3 rifles after the switch to G36, AKs after the German unification. All rifles that were already paid for in full, so the companies producing them did not earn more and they lost a sales possibility.

        The actions of H&K and the German government are usually not aligned. Let’s face it: Small arms sales are small fishes. They are not Rheinmetall or Krauss-Maffei.

  • dp

    Guns AND politics – at its best. It sticks right to your eyes.

  • Lance

    Yeah sell to Saudi Jihadies but to US gun owner…. ohh NO!!!

    • Buddah

      That has more to do with US import law than it has to do with German export law. Politicians getting “campaign contributions” from the US gun industry love to crack down on imports of foreign guns.

      It’s the main reason why you can’t import a nearly mil-spec semi-auto FAMAS, G36, or FNC. Rifles like that are evidently offered by the manufacturers as they are for sale in Europe to anyone with the cash and paperwork to buy them.