Rheinmetall rides high on Ukraine war and European demand
Rheinmetall has boosted its capability to manufacture 155mm and other ammunition with its purchase of Expal. (Photo: Rheinmetall)
The war in Ukraine has not only seen Rheinmetall and its subsidiaries up the tempo to meet demand for ammunition but also support air defence and vehicle requirements.
Germany’s Rheinmetall is booming on earnings driven by the war in Ukraine, particularly the massive demand for ammunition, and European countries looking to strengthen their defensive posture, particularly those closest to Russia.
The company reported that for the first quarter of 2024, consolidated sales climbed by €218 million or 16% to €1.581 billion compared to the same period in 2023 of €1.363 billion, which, when adjusted for currency effects, is up 17%.
Operating earnings amounted to €134 million as of 31 March, up on the previous year’s figure of €83 million.
According to the company “the improvement in operating earnings relates in particular to the strong contribution by Rheinmetall Expal Munitions, which was acquired in the previous year.”
The Weapon and Ammunition division generated sales of €362 million in the first quarter of 2024, outperforming the figure for the previous year by €149 million or 70% and key projects included artillery orders for Germany and Ukraine.
The backlog for the division more than doubled, rising by €6.394 billion or around 123% to €11.6 billion as of 31 March. The main factor driving this was the signing of two multi-year multi-billion Euro ammunition framework agreements in the second half of 2023 for the German government and the Ukrainian armed forces.
Sales in in the company’s vehicle systems business were up by €31 million or around 7% year-on-year at €493 million for the first three months of 2024 with the company noting “the increase in sales relates to projects for the delivery of tactical vehicles in particular".
More from Defence Notes
-
![Top-level commitments but no meat in UK Defence Industrial Strategy’s Statement of Intent]()
Top-level commitments but no meat in UK Defence Industrial Strategy’s Statement of Intent
The initial document focused more on creating the right partnerships and inspiring investment in defence than on any details of how future UK Armed Forces would be armed.
-
![UK begins process on new industrial strategy]()
UK begins process on new industrial strategy
The first stage of developing a new UK Defence Industrial Strategy has highlighted failings in current structures with solutions expected to be proposed in next year’s full strategy.
-
![Romanians put pro-Russian candidate into presidential runoff even as the government spends west]()
Romanians put pro-Russian candidate into presidential runoff even as the government spends west
Romania joined NATO more than two decades ago and the country is vital to the alliance’s geographic reach and its ability to supply Ukraine with weapons.
-
![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.
