uThey were happy with the “modern and robust” vehicles with the troops in Munich on Friday. The Federal Office for Equipment, Information Technology and Use of the Bundeswehr (BAAINBw) even speaks of a “success story of unprotected transport vehicles” in the message it sent after the first vehicles of the Rheinmetall MAN Military Vehicle (RMMV) joint venture. had now been returned.
The contract for the 230 protected and 310 unprotected swap body systems (WLS), which are used to transport ammunition and fuel while protecting three soldiers from fragments, infantry munitions and landmines, was signed in June 2020. The duration is seven years.
The delivery, which coincides with the day of the publication of quarterly figures from the Düsseldorf-based arms group Rheinmetall, clearly shows why the war in Ukraine and the announcement of the special fund of 100 billion euros for the German armed forces in Ukraine had no effect on the first three months of the fiscal year the balance sheet of the M-Dax group appears. Nevertheless, Rheinmetall CEO Armin Papperger believes there is a “good chance” of being able to win many orders in the current security situation. In a presentation to analysts, the Management Board expects possible orders in the second half of 2022.
Significantly higher sales expected
Without the Ukrainian effect, the Düsseldorf-based company expected 1.6 billion euros in incoming orders from Germany this year, and it now expects 6 to 8 billion. In the coming year, this should increase to 7 to 9 billion euros. The main focus is on ammunition, trucks, the Puma infantry fighting vehicle and the Boxer wheeled armored vehicle.
Instead of 1.5 billion euros in turnover, Rheinmetall expects 2 billion this year and 2.3 billion in 2023. This does not include possible orders from Ukraine, which according to the presentation to investors could amount to between 300 and 500 million euros. While the strongest growth should come from Germany, Rheinmetall hopes for orders, in particular for the Lynx tank, taking into account the rearmament of the other NATO countries.
For the full year, Papperger still expects a 15-20% increase in sales in the group, last year Rheinmetall made around 5.7 billion euros. The operating profit margin is expected to be over 11%. The stock price of M-Dax, which had recently hit new highs, was still down more than 3.5% during the day on Friday.
Civilian business in particular struggled in the first three months of the year, the sensor business suffered from supply chain issues in the semiconductor industry and corona lockdowns around Shanghai currently have a negative impact. The arms and ammunition division, on the other hand, was able to increase its sales by 17%, mainly thanks to a large order from Hungary (FAZ of March 31). Overall, sales remained at the level of a good 1.3 billion euros compared to the same period last year. The operating result increased by 8 million euros or 9.5% to 92 million euros.