The pre-tax profit figure increased by 6.8 %, totaling NOK 433 million, and the return on sales was 12.6 %.
“We are very satisfied with the 2010 results; it’s great news after taking into account the market situation, the strong exchange rate on the Norwegian Kroner, and the limited defense budgets in many countries. Our employees have worked really hard, and we have maintained a strong focus on high efficiency throughout the year,” says Edgar Fossheim, CEO of the Nammo Group.
Increased international activity
The Nordic home market (Finland, Norway and Sweden) is always of substantial importance to the Nammo Group, even through tumultuous times of reorganiza¬tion and shifts in the size and scope of the Armed Forces. National anchoring is a necessity for the continued and future development of the company, particularly for product development.
A considerable amount of development work has yielded very good results both for the ammunition sector and the rocket motor sector in 2010. These results provide the company with a lot of confidence in its perspective and intentions for long-term involvement within the international market.
In 2010, sales to the Nordic home market represented 27 % of the total turnover for the company, while sales to the international market accounted for 73 %, and 44 % summed up the sales to North America (USA and Canada). This clearly shows how important international sales are to Nammo, and how equally important it is for the industry to rely on stable national regulations. These long-term regulations ensure that the level playing field remains unchanged, and that the industry can thrive on longstanding relationships well into the future.
The economy is strained in several of Nammo’s markets. This puts a heavy pressure on public expenses, followed by inevitable cuts in the defense budgets. In addition to this there is a trend where production and added value are kept within the respective country.
“With its international presence, Nammo considers itself as being poised for further development through organic growth and acquisitions,” says Fossheim.
For further information please contact:
Senior Vice President Communication
Tlf: +47 61 15 22 42
Peter Lerche Raadal
CFO & SVP Finance
Tlf: +47 61 15 21 22