Things could get worse for the Düsseldorf-based technology group Rheinmetall: order books are full, profits are growing, the dividend is rising. “Rheinmetall remains on profitable growth path. We want to further increase our overall sales and expect another rise in earnings,” said Rheinmetall CEO Armin Papperger about the past fiscal year.
The armaments division of the MDAX Group was particularly convincing, as Rheinmetall’s products are in demand. In the defense business, the Düsseldorf-based company increased its sales by more than six percent to 3.2 billion euros. Adjusted for exchange rate effects, the increase would even have been 7.3 percent. According to the people of Düsseldorf, the increase could be attributed to the series production of the Puma infantry fighting vehicle for the Bundeswehr. The technology group also delivered additional military trucks to Australia.
The German Defence Ministry wants to modernize the armed forces and continue to spend more money on it. Rheinmetall already benefited from this in the past fiscal year. With incoming orders of more than EUR 5.5 billion, the MDAX Group doubled its prior-year figure. “With our ready technological line-up, we are ideally positioned to play a leading role in the modernization of the armed forces in Germany and other partner states in the coming years,” says Papperger confidently.
Automotive division stable
Things are not quite as smooth in the automotive sector. Increasing market uncertainties and the weak global automotive market are likely to weigh on the conglomerate in the current fiscal year in particular. In 2018, Rheinmetall increased its sales by around two percent to 2.9 billion euros.