Rheinmetall AG (RNMBF.PK), a German automotive and arms maker, said that it significantly increased its profitability in the third quarter of the current fiscal year, materially exceeding current market expectations.
Operating profit for the reporting period is expected to reach 191 million euros compared to market expectation of 165.4 million euros.
The preliminary sales figures of 1.758 billion euros for the third quarter were in line with market expectations. All figures shown in the consensus for the third quarter include for the first time the sales and earnings contribution of the Rheinmetall Expal Munitions S.A.U. Consolidated with effect from August 1st 2023.
The significantly higher than expected operating profit is mainly due to strong market dynamics in the security technology business – especially in the division Weapon and Ammunition – which led to a favorable product and margin mix in the reporting period. Positive leverage effects as a result of higher production volumes were the main supporting factors.
The company confirmed the organic sales and earnings forecast for full-year 2023 with consolidated sales in a range of 7.4 billion euros to 7.6 billion euros (excluding acquisitions) and an operating profit margin of around 12%. The separately communicated sales forecast for Rheinmetall Expal Munitions S.A.U. will be slightly above 150 million euros to 190 million euros. The operating margin of Rheinmetall Expal Munitions S.A.U. is now expected at above 25%.
Rheinmetall said it will report its full financial results on November 9th 2023.
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