27-04-2015

The Herstal Group maintains its growth and distributes a dividend

The Board of Directors of the Herstal Group (FN Herstal and Browning) held a meeting on April 24 and approved the financial accounts for 2014 which will be submitted to the Shareholders' General Assembly in June 2015.

For the third consecutive year the consolidated turnover of the Group, which is fully owned by the Walloon Region, increased significantly to €678 million (6% more than in 2013). The consolidated net income also rose to almost €49 million (11% more than in 2013).

These excellent results were obtained despite a very weak US Defense market.

A €10 million dividend payment will be proposed to the Shareholders' General Assembly in June 2015.

The Group intends to continue to ensure growth and to reinforce its position as a leader in its markets which are Military and Security Forces with the FN Herstal brand (57% of turnover) and Hunting and Shooting with the Browning and Winchester brands (43% of turnover).

The results of the Group are the fruit of an intensive policy of development of the product range and high levels of investment in R&D and the modernization of production facilities (almost € 25 million in Belgium). This policy will be maintained.

In 2014 the Group acquired Manroy, a UK registered company, which has been integrated into the Defense and Security branch.

The Group, which has more than 2,500 employees worldwide, with almost 1,500 based in Belgium, has also contributed significantly to the creation of direct or indirect employment in the Walloon Region. It participates as an industrial partner in numerous innovative research projects in the Region together with small companies and universities.

To manage the effects of its growth, and to further improve customer satisfaction the Group begun organizational changes in 2014, which will continue in 2015.

This process also aims to help the Group face its many challenges, such as the cyclic variations in the Defense market and uncertainties due to the geopolitical situation.