German weapons leading manufacturer doubles income amid Ukraine war
Date
8/11/2024 7:53:03 AM
(MENAFN) German defense giant Rheinmetall has reported a dramatic increase in its operating profits for the first half of 2024, nearly doubling its earnings and achieving a record-high order backlog exceeding USD50 billion. The Düsseldorf-based company attributed its substantial business gains to the ongoing conflict in Ukraine, which has significantly boosted demand for its military products.
In its latest statement, Rheinmetall revealed that sales surged by 33percent to EUR3.8 billion (USD4.14 billion), while operating profit skyrocketed by 91percent to EUR404 million (USD440 million). The company's order backlog has reached an unprecedented EUR48.6 billion (USD53 billion). The firm noted that its enhanced business performance is largely driven by increased orders from Germany and other European Union and NATO allies, as well as continued support for Ukraine.
Prior to the Ukraine conflict, Rheinmetall's civilian automotive sector was a major component of its business, contributing over a third of its revenue. However, with the surge in demand for military equipment such as tanks, armored vehicles, artillery, and air-defense systems, civilian sales have declined.
Rheinmetall is also expanding its production capabilities, with a new plant in Lower Saxony under construction. This facility is projected to manufacture around 100,000 artillery shells annually from its second year of operation. The company aims to produce 700,000 artillery shells across all its factories by next year, reflecting its strategic shift towards increasing military output.
MENAFN11082024000045015687ID1108541627
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.