Thanks Ukraine war and "special assets" of the Bundeswehr: Rheinmetall makes a record profit

Thanks Ukraine war and "special assets" of the Bundeswehr: Rheinmetall makes a record profit

The arms deliveries to Ukraine have finally paid off after all: According to information from the Handelsblatt already achieved a record profit in the first half of 2022 alone. On Friday, the Düsseldorf armaments forge recorded a 3.5 percent increase in sales to a total of 2.7 billion euros – the operating profit from this even rose by eight percent to 206 million euros. That is now 134 million net compared to “only” 31 million euros in the same period of the previous year. The CEO, Armin Papperger, commented happily on the result:

“Rheinmetall remains on course for growth. […] We are seeing an increase in incoming orders – also in our civilian business.”

Looking to the future, he emphasized:

“And in view of the current security policy situation, we will be helping to strengthen the defense capabilities of many countries with our products in the coming months and years.”

In February, Chancellor Olaf Scholz announced a massive expansion of the Bundeswehr as an immediate reaction to the escalation in the Ukraine war. The largest, additional rearmament package in the history of the Bundeswehr, declared as a “special fund”, costs German taxpayers 100 billion euros – in addition to the “normal” defense budget in the annual budget. At the end of February, the Düsseldorf-based company Rheinmetall hastily submitted an “offer” to the federal government of 42 billion euros for “its” share in this rearmament program.

16.6 billion euros from the “special fund” are now planned for spending on the Rhenish bestsellers “Marder” and “Fuchs” as well as for the brand new “main ground combat system” (MGCS) of the armaments giant, which has existed since 1889.

In 2021, with sales of 5.6 billion euros calculated over the entire calendar year, Rheinmetall had already increased its operating result by half to 608 million euros for 2021 at the time. The armaments business made up the largest share – ahead of the automotive supply division. As a result of the war in Ukraine, the share price of the Dax group rose from EUR 93 in mid-February to a peak of over EUR 220 in May and was still quoted at EUR 176 on Friday.

more on the subject – Media report: Ukraine pays 70 percent more than Jordan for Marder tanks from Rheinmetall

Source: RT

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