The Defence sector of Germany’s Rheinmetall Group continues to grow, the company has announced. The company has increased the volume of its defence business to €754 million in the second quarter of 2018 as compared to a revenue of €509 million in the first quarter of 2018.
Rheinmetall projects that its defence sector will witness sales growth of around 12 per cent for the in fiscal 2018.
“Assuming stable economic development, Rheinmetall also anticipates a further improvement in operating earnings in the Defence sector in 2018 and expects an operating earnings margin of around 6.5 per cent. This corresponds to the upper end of the previous forecast range of 6.0 per cent to 6.5 per cent,” a company release says.
Major orders in the second quarter were an order in the Weapon and Ammunition division from an international customer worth around €380 million for the delivery of artillery and tank ammunition and an order in the Electronic Solutions division worth €102 million to supply air defence products in Asia.
An increase in sales of €44 million or 16 per cent compared with the previous year’s figure was reported by the Electronic Solutions division and its Air Defence and Radar Systems business unit was the main driver behind this growth.
Rheinmetall’s Vehicle Systems division reported that sales of military trucks were down due to bottlenecks at some suppliers, however, sales of other types of vehicles increased.