Rheinmetall's business picks up strongly
Demand for ammunition, tanks and other products from Germany's largest defense contractor Rheinmetall is going through the roof. In the first three quarters, order intake in the armaments division, including new framework contracts and other customer agreements, rose by around 130 percent to 14.5 billion euros, the company announced in Düsseldorf on Thursday. Group sales climbed by 13 percent to around 4.6 billion euros in the first three quarters, while the operating result rose by 17 percent to 387 million euros.
Orders for military equipment usually run for a very long time - they only have a delayed and gradual impact on sales. The high order backlog shows that the prospects for the armaments manufacturer are very good. The Spanish ammunition company Expal, whose takeover was completed on July 31, is included in the sales and earnings figures for the first time.
"We are on track to achieve our ambitious annual targets for sustainable profitable growth," said Rheinmetall CEO Armin Papperger. "Rheinmetall is needed when it comes to meeting the dramatically increased demand for military equipment in many countries." At the end of September, the Group had around 27,900 full-time jobs, almost half of them in Germany. The largest plant is in Unterlüß in Lower Saxony, where tanks and artillery ammunition, for example, are manufactured.
Rheinmetall confirmed its annual forecast on Thursday, according to which Group sales for the year as a whole are expected to be between 7.4 and 7.6 billion euros. The figure for the previous year was 6.4 billion euros.
Rheinmetall plays an important role in supporting Ukraine in its defensive war against Russia, and the company has already supplied extensive ammunition and old tanks that have been modernized. The company is being paid by the German government. Only on Tuesday, Rheinmetall announced that it had received an order for around 100,000 rounds of mortar shells. Delivery to the Ukraine is to begin shortly and be completed in two years.
The surge in demand for Rheinmetall's weapons and defense industry products, as indicated by the 130% increase in quarterly order intake, is a testament to the company's significant role in meeting the increased demand for military equipment globally. Rheinmetall's quarterly figures show a 17% rise in operating result, contributing to the defense industry's substantial growth.
Source: www.dpa.com
