German defense company Rheinmetall AG recorded preliminary first-quarter sales of approximately 1.9 billion euros, falling below analyst expectations. This was reported by Bloomberg, according to UNN.
Details
The average forecast was approximately 2.3 billion euros. The company attributed the shortfall to the shifting of a portion of revenue into the second quarter.
Operating profit for the period amounted to 224 million euros, compared to the expected 240 million euros.
Reasons and Expectations
Rheinmetall noted that it expects revenue growth in the second quarter due to truck deliveries to Germany and the resumption of production at its Spanish ammunition plant following an accident.
The company is also changing its reporting structure, highlighting separate divisions, including weaponry, vehicle systems, air defense, and digital solutions.
Plans and Context
Rheinmetall confirmed its annual sales forecast of 14-14.5 billion euros with an operating margin of approximately 19%.
Amid rising demand due to global conflicts, the company plans to expand in the field of missile systems and artillery, and has already secured a major contract for the supply of ammunition to the Bundeswehr.