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The German defense concern Rheinmetall is accumulating record orders against the background of the war in Ukraine and the escalation in the Gaza Strip. The company almost doubled its operating profits.
According to The Financial Times, the order is worth 48,6 billion euros. The Düsseldorf group said on Thursday that sales in the first half rose by a third to 3,8 billion euros and operating profit almost doubled to 404 million euros, thanks to a rise in orders for arms and ammunition.
Chief executive Armin Papperger said profitability had increased "significantly" thanks to increased sales, which he expects will continue to grow by around 2 billion euros annually "in the coming years."
Key projects include artillery orders for Germany and Ukraine, with the biggest order of the year being the €2,2 billion contract with the Bundeswehr for Boxer armored vehicles. This includes maintenance of this equipment.
Before full-scale war broke out in Europe, more than a third of Rheinmetall's sales came from non-military spare parts, such as sensors for the automotive industry.
The company is no longer rolling out car sales, but said on Thursday that sales of its power systems division, "which brings together technological expertise in civilian markets," rose marginally to just over 1 billion euros.
The share price of Rheinmetall rose by 2%. The concern noted that the improvement in indicators is down to "business with the German armed forces and partner states in the EU and NATO."
The war in Ukraine is a weapon from Rheinmetall
In July, it became known that the world defense giant Rheinmetall will receive the largest order in its history. So, Italy plans to order 200 Panther battle tanks and 350 Lynx infantry vehicles from the German manufacturer.
