NAMMO SUCCESS IN A TOUGH DEFENSE MARKET IN 2012
Nammo increased its turnover to 3.310 MNOK in 2012, a notable increase from the previous year, with an operating result of 459 MNOK (up 7.5%).
“We are very pleased with these results”, says Edgar Fossheim, President and CEO of Nammo AS. “In a defense market that is showing severe signs of tight budgets, our hard work has secured several considerable contracts with our most important customers.”
Increased International Activity
As always the Nordic market is of great importance for Nammo. For a continued good development the national foundation in the Nordic countries is very important, especially regarding product development. Considerable efforts within research and development programs proved very successful last year, both for the ammunition- and the rocket motor business. The achievements in the international market are also a result of this good work; especially there has been an increasing demand for rocket motors.
The Nordic market (Norway, Sweden, Finland) represented 28 % of the total turnover in 2012, while the international market represented 72 %, of which 31 % was sales to the US and Canada. This clearly shows how important the international market has become to Nammo, and how important it is that the conditions for both national export regulations and a level playing field are secured.
The economy in many of the countries where Nammo has a market share is very overstretched. This has resulted in reduced defense budgets and postponement or cancellation of big defense programs. The situation has also created a need for the international customers to increase the value added and production within their own countries. “This means that Nammo must grow not only through organic growth, but also through acquisitions, to secure the value added in our most important markets,” says Fossheim.top ▲