German arms company Rheinmetall boosts sales

Based on preliminary figures, the company announced on Friday that this is 13 percent more than in 2021. This does not include piston work, some of which has already been sold.

Growth thus accelerated, with sales increasing only around 5 percent in 2021. In terms of operating profit, the group expects an increase of more than 20 percent for 2022, which will significantly exceed 700 million euros. Final figures will be available on March 16.

Organically – that is, with no currency effects and no purchases or sales – sales increased only 10 percent last year. This was below the estimated 15 percent. The company justified this unexpectedly weak development by having invested too much. Currently, finished products are still in stock, and customers’ call has been postponed to 2023.

An example of such preliminary work is the old Marder armored personnel carriers that have been or are being modernized by Rheinmetall. According to a decision taken by the federal government, Germany may soon put these vehicles at the service of Ukraine.

Rheinmetall has also already produced a wide range of ammunition, as sales seem certain given the results of the Ukrainian war and growing demand. In addition, Rheinmetall has spent a lot of money upping stocks of key preliminary products such as semiconductors.

Rheinmetall also operates as an automotive supplier. In this episode, the company faced headwinds as global auto production slowed.

The group has approximately 25,000 employees. Rheinmetall manufactures artillery, tanks, anti-aircraft, military trucks and ammunition. Its head office is in Düsseldorf and Germany’s largest factory is at Unterlüss in Lower Saxony.

(SDA)