Rheinmetall has generated a high-margin growth in defence over the past nine months with its automotive operations also on target for a positive operating result. Consolidated sales are down seven per cent year on year at €4Bn despite the automotive market recovering slightly in the third quarter. The consolidated operating result fell by €92M after nine months to €170M, with the Q3 operating result up on the previous year at €101M.
The company’s defence operations are still performing well with a 12 per cent sales upturn in first nine months to €2.5Bn alongside an operating result which has increased by €64M (48 per cent) to €197M. Automotive operations however remain weaker than in the previous year on account of the coronavirus crisis with sales down 27 per cent at €1.5Bn, though the positive operating result in the third quarter reduces the operating loss after three quarters to €-12M. Looking ahead though, Rheinmetall has issued an upgraded outlook, with automotive now anticipating a positive operating result for the year while the 2020 margin forecast for defence has also been raised.