- Rheinmetall's order books are overcrowded
As a result of the Ukraine conflict, the order books of arms manufacturer Rheinmetall are fuller than ever. The Düsseldorf-based company reports that its order backlog stood at €48.6 billion at the end of June, a 62% increase from the previous year (€30 billion). This backlog includes orders on hand, expected calls from framework contracts, and other customer agreements. The company's headquarters are in the NRW state capital, with its largest plant located in Lower Saxony's Unterlüß.
The growth is being driven by the consequences of the Ukraine conflict - NATO countries are ordering much more than before. Additionally, Rheinmetall is supplying military equipment to Ukraine, including modernized old tanks and urgently needed artillery ammunition. Rheinmetall is one of the world's leading producers of 155-millimeter shells, which are in high demand by Ukraine.
In the weapons and ammunition division, the backlog could even be increased by around €19 billion, more than tripling. Other areas, such as military trucks, also grew, but not as strongly as the ammunition segment.
Glowing Business Figures
Overall, Rheinmetall's business figures were very positive. In the first half of the year, sales increased by a third to around €3.8 billion. The operating result could be almost doubled to €404 million. If you look only at the second quarter, the growth was even stronger than at the beginning of the year. Rheinmetall attributes the increased profitability mainly to the acquisition of a Spanish ammunition company.
"We have never grown as strongly as we have now," says CEO Armin Papperger. The management expects annual sales increases of around €2 billion in the coming years. "This extremely positive development is only possible because we invested early and have been pursuing a strategic plan since 2014 - the year of the annexation of Crimea," explains the manager. The company has significantly expanded its capacities, made acquisitions, and built new plants.
The increased demand for military equipment and ammunition, triggered by the Ukraine conflict, has significantly filled the company's order book for weapons and ammunition. As a direct consequence, Rheinmetall's order book for this division could expand by approximately €19 billion, more than tripling its current size.
The orders in the order book for the weapons and ammunition division, which include those from NATO countries and Ukraine, are mainly contributing to Rheinmetall's impressive business figures.
