Rheinmetall reports significant growth over Q3
Highly mobile on the chassis of the Leopard 2, the pioneer troops use the Kodiak to create barriers. (Photo: Rheinmetall)
Rheinmetall reports a significant increase in earnings and margin over fiscal 2021, but predict semiconductor shortages may impact sales.
With an operating margin of 7.7%, Rheinmetall AG has reported that profitability has significantly increased over the first 3 quarters of 2021.
Armin Papperger, CEO, Rheinmetall AG, commented: ‘ We have now expanded our very high order backlog to more than €14 billion with major new orders’.
This growth has been fuelled by major contracts for the company.
They received contracts to modernise Challenger main battle tanks for the UK and deliver Kodiak armoured engineering vehicles and upgrade the Puma infantry fighting vehicles for the German Bundeswehr.
However, Rheinmetall predicts slower sales growth in its forecast for fiscal 2021 compared to its previous expectations. This has been caused by shortages of semiconductors and other materials.
The amended forecast predicts slightly lower sales growth of around 6%, €3.8 billion, for fiscal 2021, measured against the pro forma sales of €5,406 million in 2020, and an operating margin of around 10%.
The original forecast anticipated sales growth between 7% and 9%.
Related Equipment in Defence Insight
More from Defence Notes
-
![What the future holds for Ukraine and NATO under a Trump administration]()
What the future holds for Ukraine and NATO under a Trump administration
Although Trump’s geopolitics policy for Europe remains unclear, defence analysts from the US and Europe predict how his incoming administration would attempt to handle critical issues on the continent.
-
![RUSI deputy: UK needs longer procurement plans and improved awareness of US sift to Indo-Pacific]()
RUSI deputy: UK needs longer procurement plans and improved awareness of US sift to Indo-Pacific
The UK budget announced in Parliament on 30 October was the first by a Labour government in 14 years which has also launched a review into defence procurement programmes.
-
![Australia outlines longer punch and brings local industry onboard]()
Australia outlines longer punch and brings local industry onboard
The Australian government has placed a focus on Guided Weapons and Explosive Ordnance (GWEO) which has included the purchase of additional long-range rocket systems and investments in local production of missiles.
-
![UK boosts defence budget by 5.3%, but is this enough?]()
UK boosts defence budget by 5.3%, but is this enough?
The UK budget announced in Parliament on 30 October is the first by a Labour government in 14 years. While it sees a boost in defence spending, this comes in the face of fiscal challenges and the effects of inflation.
-
![UK makes big moves to fix “broken” defence procurement system ahead of major review]()
UK makes big moves to fix “broken” defence procurement system ahead of major review
The changes are intended to meet greater need and deliver more value for money.
-
![US companies invest in production capabilities to satisfy DoD’s hunger for cutting-edge capabilities]()
US companies invest in production capabilities to satisfy DoD’s hunger for cutting-edge capabilities
BAE Systems, Booz Allen Hamilton and Lockheed Martin have been betting on new facilities and innovative manufacturing technologies to speed up the development of new solutions.
