Defense firms increased profitability

Combined after-tax profits of the 18 largest Slovak defense firms rose by half in 2023 and another 80% last year to €137m. Sales rose 25% to €710m last year. The war in Ukraine is expected to fuel demand for their products. State-owned firms continue struggling with profitability, with the CSG group (Strnad family) generating 77% of the sector’s profits. For instance, state-owned Konštrukta Defence is facing delays in its contract to deliver 16 Zuzana howitzers to Ukraine, having supplied only four last year. It plans to deliver ten this year. Trade is also rising; arms exports surpassed the 18 manufacturers’ domestic sales by €0.5bn. Servicing operations are growing too. State-owned LOT Trenčín will service 14 F-16 fighter jets, which are being acquired by the Slovak army. Together with Norway’s Kongsberg AMS, it will establish an F-16 maintenance hub for other NATO members.

(dennikN.sk)