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FRANKFURT (Dow Jones) – Rheinmetall surprised in the third quarter with a surprisingly strong development in both the defense and auto parts business and raised its profit forecasts for both areas. The MDAX-listed group significantly exceeded market estimates in the automotive business, which was actually particularly affected by the corona pandemic. While analysts by consensus expected a loss of millions, Rheinmetall achieved black numbers here.
In total, EBIT fell by a third to 66 million euros, according to the announcement. Analysts had expected significantly less with 32 million euros. The bottom line was that the Düsseldorf group achieved a profit of 44 million euros after 57 million euros in the previous year. Analysts had only expected 15 million euros. According to further information, sales fell to 1.382 (previous year: 1.481) billion euros – here too, analysts had expected less.
For the full year, Rheinmetall AG is now aiming for an operating margin of 10 to 11 percent in the Defense business. So far, around 10 percent have been targeted. In the automotive sector, a positive result between 10 million and 20 million euros should now be achieved. So far, a loss of 30 million or, at best, breakeven has been aimed for. An operating margin of 6 to 6.5 percent is targeted for the group, sales are likely to fall by 6 to 7 percent after adjusting for currency effects.
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(END) Dow Jones Newswires
Nov 06, 2020 01:52 ET (06:52 GMT)