According to preliminary calculations, the German arms group and automobile supplier Rheinmetall achieved record operating results last year. The group surprisingly announced on Friday in Dusseldorf based on preliminary numbers that its operating margin should be better than previously thought.
On the other hand, organic growth is not likely to be as strong as expected. According to Rheinmetall, this is due to both a slow recovery in global auto production and the fact that some orders in defense have been pushed back until 2023. MDAX-listed shares then jumped briefly, but have since given up some of the gains. Recently, it has risen by 2.6 percent.
Rheinmetall had sales of 6.4 billion euros last year, an increase of 13 percent over the previous year. Adjusted for currency effects and acquisitions, the increase is around 10 percent, which is lower than the roughly 15 percent expected by management, the group acknowledges in the announcement. Calls for some advanced services in customer-coordinated defense technology operations have been deferred until 2023. Management now expects at least 11.5 percent of sales operating result instead of the previous 11 percent. So the operating result should be more than a fifth higher than it was in 2021.
Rheinmetall intends to publish final numbers and forecasts for the 2023 fiscal year on March 16th.
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