Rheinmetall’s defence sector posted a high order intake of €1,751 million in the first half of 2016, considerably exceeding the prior-year figure (H1/2015: €1,235 million) with growth of 42 percent.
The sector’s order backlog reached a new record value of €6,905 million (June 30, 2016). The largest single orders in the second quarter of 2016 were acquired by the Defence divisions Weapon and Ammunition and Electronic Solutions, the company said in a statement Thursday.
For example, one international customer ordered munitions worth just over €400 million to be delivered until 2022. A major modernization order from the Swiss Armed Forces has a mid-eight-figure volume in euros and includes the modification of the Swiss Air Force’s air defense systems until 2019.
At €1,250 million, the Defence sector’s sales rose by €196 million or 19 percent on the previous year’s figure in the first half of the year. Operating earnings (EBIT) improved by €29 million year on year to €2 million and were therefore positive again in the first half of a year for the first time since 2012.
Rheinmetall Group ended the first half of the year with substantial sales growth and a sharp rise in operating earnings.
The upward trend is being driven by both sectors of the technology group. The Defence is seeing high growth both in sales and order intake, Automotive shows persistently high profitability and is now returning to its growth path with an increase in sales after a slightly weak first quarter.
The technology group has confirmed its annual forecast for 2016 and continues to target consolidated sales of roughly €5.5 billion and an operating margin of around 6 percent for the fiscal year.
Armin Papperger, CEO of Rheinmetall AG, “We are seeing profitable growth in both sectors. In Defence, with our broad technological portfolio, we are benefiting from growing global demand for defense products. This is evidenced by the amount of orders obtained recently: Our order backlog in Defence has never been higher. Automotive remains continuously highly profitable and more than compensated in the second quarter for the slight drop in sales at the start of the year. With our pioneering technologies and global positioning, we are confident of participating further in the growth of the major automotive markets.”
In the first half of 2016, Rheinmetall generated consolidated sales of €2,599 million, an increase of €205 million or 9 % on the same period of the previous year. Adjusted for currency effects, the growth was 10 percent, with the proportion of business activities abroad increasing to 78 percent after 75 percent in the first half of 2015.
Operating earnings for the Group (EBIT) grew at a higher rate of 30 percent or by €24 million to €103 million.
The Rheinmetall Group’s order backlog remains at a record level. Like three months ago, it was about €7.3 billion on June 30, 2016, which represents growth of €181 million on the comparative figure for the previous year.
The Australian Department of Defence has selected BAE Systems Australia and Rheinmetall to participate in the next stage of evaluation for LAND 400 Phase 2, Armys Mounted Combat Reconnaissance capability. Deputy Secretary Capability Acquisition and Sustainment Group (CASG), Kim Gillis, said both BAE Systems and Rheinmetall have been assessed as offering competitive solutions with designs based on capabilities already in service with other nations, the Australian DoD said in a statement Thursday
Rheinmetall has won a $439 million contract to supply ammunition to an international customer. The company said in a statement Tuesday without revealing the type of ammunition nor the country to which it will be supplied
Rheinmetall recently signed a licence agreement with the Canadian government, General Dynamics Ordnance and Tactical Systems–Canada to produce Omnitrap decoy ammunition for the Canadian Navy. Signed at the recent CANSEC show in May 2016, the contract is worth a mid-range eight-figure euro amount with thirty-year agreement term
Rheinmetall is offering a 105mm medium battle tank at Indo Defence 2016, held from 2-5 November 2016 in Indonesia. The vehicle is based on the Marder 1 chassis already fielded by the Indonesian Army
Rheinmetall Defence has signed its first Global Supply Chain agreement to provide Australian companies greater access to international supply chains. “The Agreement will provide new commercial and defence opportunities in Rheinmetalls international supply chain, and assist in breaking down barriers that may otherwise deter local firms from doing business in overseas markets
Rheinmetall has won a contract to set up an urban warfare “training city from a customer of Middle East-North Africa (MENA) region. The complete ‘training city site, which will be constructed in the customer country, will have technical features that make it the advanced training centre for preparing soldiers and security personnel for urban operations
Rheinmetall, which is repositioning itself under the name ONE Rheinmetall, has mapped out a strategy program that will integrate Automotive and Defence sector into even more efficient union. The aim is to optimize cooperation between the two sectors, generally enhance group effectiveness in its areas of business, generate growth, and expand market shares, the company announced thursday
Rheinmetall has submitted a bid to upgrade the capabilities of the challenger 2 tank fleet in response to the systems Life Extension Project. “Rheinmetalls solution will replace major obsolete components in the Challenger 2 while at the same time introducing new capabilities that will substantially improve the combat power of the British Army
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