Armoury Company Rheinmetall proceed to benefit from expanding defence spending in connection with the war in Ukraine. According to the company, sales in the military section increased by around 73 percent in the first quarter, which translated into an increase in sales of the full group by about 46 percent, to EUR 2,305 billion.
Expectations far exceeded
The operational consequence in the military section nearly doubled, which means an increase of 49 percent to 199 million euro for the full group. This means that the expectations of the capital marketplace have been importantly exceeded.
The company explained that the affirmative improvement of the situation was solely due to good results in the defence sector, and in peculiar to pre-emptive effects from the second to the first quarter. Orders from Germany in particular, they contributed to an increase in incoming orders of 181 percent, to EUR 11 billion, while the order book reached a evidence value of EUR 62.6 billion.
The Management Board so maintains the forecast of an increase in sales of the Group by 25-30 percent and an operating profit margin of about 15,5 percent. As indicated, this position does not yet take into account the expected "improvement of marketplace potential" resulting from the improvement of the geopolitical situation.
