Rheinmetall Buoyed by Strong Domestic Defence Sales

Strong defence sales in the German domestic market helped Rheinmetall offset falling automotive sales to conclude the first half of the year with improved revenues and earnings.<br />The Dusseldorf-based group reported a 2% rise in sales to EUR2.8 billion (USD3 billion): a figure that masked a 7% fall in automotive sales attributable to a “weak industry...

Strong defence sales in the German domestic market helped Rheinmetall offset falling automotive sales to conclude the first half of the year with improved revenues and earnings.

The Dusseldorf-based group reported a 2% rise in sales to EUR2.8 billion (USD3 billion): a figure that masked a 7% fall in automotive sales attributable to a “weak industry environment” and an 8.8% jump in defence sales.

Rheinmetall reported that defence sales reached EUR1.38 billion against operating earnings of EUR69 million, which itself was more than double the EUR31 million earned during the same period of the previous year.

Armin Papperger, Rheinmetall chief executive, said, “In the defence sector, we are increasingly feeling the effects of the considerable backlog of demand in military procurement in many countries.

Source: www.janes.com