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06 May 11. Rheinmetall AG began the 2011 fiscal year with a rise in sales of more than 25% and a considerable increase in EBIT, and is thus well on its way to achieving its forecasted full-year growth targets. The Düsseldorf-based group reported a business volume of €1,027m for the first three months of 2011, which marks a 28% increase compared with the same period of the previous year. This thoroughly positive development is
attributable to excellent performance in both of the group’s sectors, Defence and Automotive. Based on the results achieved in the first quarter of 2011, Rheinmetall is able to reaffirm its forecast for the current fiscal year, which entails increasing consolidated sales from €4.0bn to €4.3bn and increasing EBIT to €330m to €360m from €297m in the previous year.
Klaus Eberhardt, CEO of Rheinmetall AG, stated, “We have gotten off to a spectacular start to the 2011 fiscal year. The first-quarter figures we are presenting give us every reason to view the further course of the year with great optimism. If the markets continue to remain stable, we will be on course in 2011 to achieve even better results than we did in the record year of 2010.”
The Rheinmetall Group’s Automotive sector benefited in the 2011 fiscal year from the continued robustness of automotive demand in key markets. At the same time, the Group’s Defence sector, which is broadly positioned on an international scale, has allowed Rheinmetall to cope with adverse effects arising from budget constraints prevailing in a number of countries. As a result of a very focused internationalization policy and a targeted product strategy, both sectors are operating in promising markets and achieving tremendous success with future-oriented products and technologies. The Group’s 2011 first-quarter EBIT reached €77m, marking a €38m increase compared with the first-quarter 2010 figure of €39m. The significant rise in the Group’s earnings is the result of the expansion of business volume in both sectors combined with the substantially improved cost structures in the Automotive sector and the persistently high profitability of the Defence sector. Rheinmetall recorded earnings before tax (EBT) of €63m in the first quarter of 2011, exceeding the 2010 first-quarter figure of €27m by €36m. Consolidated net profit increased to €50m, exceeding the 2010 first-quarter figure of €19m by €31m. Earnings per share amounted to €1.26 in the first quarter of the current year, topping the €0.51 figure from the same period of the previous year.
Automotive: Sales rise by 29%, EBIT more than doubles
Thanks to the considerable growth in business volume achieved by all divisions, the Automotive sector was able to record sales of €586m in the first three months of the year, marking an increase of €132m (29%). After the successful year of 2010, the Automotive sector was able to kick off the 2011 fiscal year with considerable growth compared with the respective period of 2010 and clearly outperform the market growth of 4% achieved by the triad of economic regions consisting of Western Europe, NAFTA, and Japan. Primarily as a result of new production launches for manufacturers in Western Europe and the NAFTA region, the Automotive sector was able to record significant growth in the first quarter of 2011 as well. The joint venture companies in China not consolidated in the sales figures of the Automotive sector generated growth of 18% in the first quarter of 2011 to reach €72m, exceeding the €61 m generated in the first quarter of 2010. The Chinese joint ventures received two major orders in the reporting period from international clients for engine blocks and pistons with a total order volume of around €180m. Rheinmetall Automotive is off to an outstanding start to the new year with regard to earnings as well. With an improvement in EBIT of €23m compared with the first quarter of 2010 to reach €40 m in the first quarter of 2011, the Automotive sector more than doubled its earni

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