Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Rheinmetall hails ‘new decade’ as defence spending drives up sales

Rheinmetall hails ‘new decade’ as defence spending drives up sales

By Rachel More

BERLIN (Reuters) -German arms manufacturer Rheinmetall said on Thursday it expected record sales and increased profitability this year, as the war in Ukraine drives up defence spending in the NATO bloc, in a trend set to buoy the company for years to come.

Rheinmetall expects to crack the 10-billion-euro ($10.93 billion) mark in sales for the first time in 2024, according to a company forecast that also foresees an operating profit margin of 14-15%, up from 12.8% in 2023.

“A new decade of security policy has begun,” Chief Executive Armin Papperger said as the group presented its results for 2023, the first full year of the Ukraine war.

Consolidated sales rose in 2023 by 12% to just under 7.2 billion euros. In the weapon and ammunition division, sales rose 29% on the year prior, while vehicle systems saw a 15% boost.

However, total sales fell short of the company’s own target of a range of 7.4-7.6 billion euros.

Shares in Rheinmetall were up 3.3% at 0820 GMT.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Germany, Kyiv’s biggest military supporter in Europe, announced a new defence policy after Russia’s invasion of Ukraine in February 2022, with a 100-billion-euro special defence fund created to modernise its armed forces.

Other NATO allies have stressed the need for greater defence spending, and Ukrainian demand for ammunition has led to a European drive to ramp up production in that area.

As well as booking major orders for Germany and other armed forces in 2023, Rheinmetall said it became an important partner for Ukraine, with “extensive deliveries from the entire product portfolio”, including tactical vehicles and ammunition for Gepard anti-aircraft tanks as well as mobile field hospitals.

At the end of last year, Rheinmetall’s order backlog had climbed to an all-time high of 38.3 billion euros, up from 26.6 billion euros a year earlier.

($1 = 0.9147 euros)

(Reporting by Rachel More and Matthias Inverardi; editing by Miranda Murray and Tomasz Janowski)


Recent Post: