Strong surge in arms industry benefits Rheinmetall significantly.
The conflict in Ukraine is causing a surge in demand for weapons, which is boosting Rheinmetall's performance. This German defense conglomerate and car supplier has an impressive order backlog worth over 40 billion euros.
In Q1, Rheinmetall experienced a significant boost in business, with sales rising by 16% to 1.58 billion euros compared to the same period last year. Their operating income also skyrocketed by 60%, reaching 134 million euros. However, analysts predicted slightly higher numbers for both these figures.
Rheinmetall's operating margin remained at 8.5% at the beginning of the year. They maintained their anticipated annual revenue and profitability projections.
German and partner country armies, as well as aid efforts for Ukraine, have been the major contributors to the company's prosperity. In the first quarter, the company received approximately four billion euros in new orders compared to 3.1 billion euros in 2021.
Rheinmetall currently has an order backlog exceeding 40 billion euros, which is a record-breaking number. This figure accounts for expected orders from framework agreements and customer contracts, rising by 43%.
"We're making great progress towards reaching our ambitious goals for sustainable, profitable growth," asserted Rheinmetall's CEO, Armin Papperger. Therefore, he aims to achieve annual sales of around 10 billion euros (previously 7.2 billion euros) and an enhanced return on sales of approximately 14 to 15% (12.8%).
Tags:
weapons, war, Russia, Ukraine, Rheinmetall, armaments, defense
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Source: www.ntv.de
