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03 Nov 16. Rheinmetall Quarterly Figures – Strong Growth in Sales and Earnings. Forecast:
– 2016 Sales to Rise to €5.6b.
– Consolidated sales rise 10% to €3,904m adjusted for currency effects
– Operating earnings for the Group increase by 30% or €42m to €182m
– Strong sales growth in Defence of 18% to €1,912 m and considerably improved operating earnings of €32m
– Automotive increases sales after good third quarter of 2016 to €1,992m, operating margin at high level of 8.2%
– Order backlog remains over €7bn
With substantial growth in sales and earnings, Düsseldorf-based Rheinmetall AG is on the home stretch for a successful fiscal year 2016. In the first nine months of the year, both sectors increased their business volume, with Defence growing particularly strongly in terms of sales and significantly increasing its earnings. Automotive is characterized by stable business development with continued high profitability.
The successful business performance in the first three quarters has prompted the technology group to adjust its annual forecast for 2016. Rheinmetall is now targeting consolidated sales of €5.6bn (previous forecast: €5.5bn) and an operating margin of around 6% (unchanged).
Armin Papperger, CEO of Rheinmetall AG, says:
“We are delighted with the persistently positive development in the Group. The strong growth shows that we are very well positioned in key markets as a global technology group. With our Defence sector, we are benefiting from many countries’ growing demand for security precaution solutions, both in civil and military areas. With our diverse product range, we are in the best position to build on our market positions and keep growing organically. In the Automotive sector, we are not only devoted to the highly topical issues of fuel and emissions reduction, but are also expanding our expertise to alternative drive technologies. In addition, we are benefiting from the growth in the key automotive markets around the world.”
In the first nine months of 2016, Rheinmetall generated consolidated sales of €3,904m. Compared to the same period of the previous year, this is an increase in business volume of €322m or 9%. Adjusted for currency effects, growth came to 10%.
Earnings before interest and taxes (EBIT) in the first nine months of 2016 increased by a substantial €42m or 30% to €182m. Earnings before taxes (EBT) increased from €96 m to €140m (+46%). Consolidated earnings reached €99 m after €64 m in the same period of the previous year (+55%).
This increased earnings per share from €1.89 (2015) to €2.22 in the period under review.
The Rheinmetall Group’s order backlog also increased, and at €7,359m on September 30, 2016, was €371m higher than the corresponding figure of the previous year (€6,988m).
The proportion of sales achieved abroad remained at a high level (77%). In addition to the German market (23%), the key regions in terms of sales volumes were Europe excluding Germany (33%), followed by Asia (22%) and North and South America (13%).
Defence: Strong Growth in Sales, Earnings and Order Intake
At €1,912m, the Defence sector’s sales rose significantly by €287m or 18% in the first nine months of 2016 compared to €1,625 m in the previous year. Adjusted for currency effects, the growth was 20%.
The sector’s earnings before interest and taxes (EBIT) improved by €43m year on year to €32m and were therefore positive in the first nine months of a year for the first time since 2012.
The considerable sales increase in the Weapon and Ammunition division, which generated sales growth of around 50% to €720m, had a particularly positive effect on earnings development.
The Electronic Solutions division increased its sales only slightly