Profit from “Marten” delivery
Rheinmetall announces record profit
01/06/2023, 4:28 p.m
The shares of the Rheinmetall armaments group are on the up. In particular, the German government’s decision to deliver the “Marder” infantry fighting vehicle to the Ukraine is giving the group momentum. Nevertheless, Rheinmetall did not achieve its sales target.
The armaments group and automotive supplier Rheinmetall expects record profits despite unexpectedly low growth. The operating result is likely to have increased by more than 20 percent in 2022, Rheinmetall announced. Group sales in 2022, adjusted for discontinued operations, grew by around 13 percent to EUR 6.4 billion.
Above all, the group is benefiting from the German government’s decision to deliver the “Marder” infantry fighting vehicle to the Ukraine. The share papers increase by almost two percent. According to information from government circles, several dozen “Marder” tanks from the Düsseldorf company are to be delivered to the Ukraine.
After the federal government’s commitment to deliver the tanks, we will now look at how quickly they can be transported. Government spokesman Steffen Hebestreit had announced in Berlin that it was about 40 of the weapon systems that a battalion could be equipped with. The federal government intends to hand over the promised armored personnel carriers to Ukraine in the first three months of the new year. The Marder armored personnel carrier, weighing around 40 tons, dates back to the 1960s and is still used today by the German armed forces and a handful of other countries.
Confident about profit margin
Due to the weakening automotive business and delayed calls in the armaments sector, organic growth, which also takes into account exchange rate and M&A effects, was only ten percent. Rheinmetall had promised an increase of 15 percent here.
Rheinmetall is more confident about the profit margin. This should have been at least 11.5 percent in 2022. So far, more than eleven percent have been promised. The group intends to publish the final figures for 2022 and the outlook for the 2023 financial year on March 16.