German arms manufacturer Rheinmetall posted a 60% leap in Q1 profits as a result of soaring defense spending triggered by the war in Ukraine.
Profit, however, remained below the forecasted figures and as of 1220 GMT the share price was 3% down. Nonetheless, analysts have blamed this on delays to weapons shipments and have stated that this should recover in H2.
With Western nations looking to replenish and increase their stockpiles following large-scale donations to Kyiv, Rheinmetall has seen a surge in orders. As things stand, the firm’s market value has quadrupled since the Russian invasion.
Whilst their quarterly operating profit and revenue dipped 6% below estimates, their order backlog swelled by 43% to EUR 40.2 billion. More orders, said CEO Armin Papperger, are expected. According to Papperger, the firm anticipates winning even more orders, and possibly up to as much as a third of the EUR 100 billion that Germany’s special defense fund rubber-stamped following Russia’s invasion in 2022.
Pressed on the possible reelection of Donald Trump, Papperger said that regardless of the result, he expected Washington to further push Europe to “grow up” and sink more of its own money into beefing up the continent’s security. “Europe is not ready for conflict,” he warned.
With Western nations looking to replenish and increase their stockpiles following large-scale donations to Kyiv, Rheinmetall has seen a surge in orders. As things stand, the firm’s market value has quadrupled since the Russian invasion.
Whilst their quarterly operating profit and revenue dipped 6% below estimates, their order backlog swelled by 43% to EUR 40.2 billion. More orders, said CEO Armin Papperger, are expected. According to Papperger, the firm anticipates winning even more orders, and possibly up to as much as a third of the EUR 100 billion that Germany’s special defense fund rubber-stamped following Russia’s invasion in 2022.
Pressed on the possible reelection of Donald Trump, Papperger said that regardless of the result, he expected Washington to further push Europe to “grow up” and sink more of its own money into beefing up the continent’s security. “Europe is not ready for conflict,” he warned.
Source: aw/jd
More In Business MORE...
