The German arms maker confirmed its 2023 guidance,
aiming at sales within a range of 7.4 to 7.6 billion euros, as
well as an operating margin of around 12%.
($1 = 0.9023 euros)
(Reporting by Tristan Veyet in Gdansk; Editing by Maria
Sheahan)
(Adds share move, outlook, details on results)
May 4 (Reuters) - Rheinmetall reported a
bigger-than-expected decline first-quarter operating earnings on
Thursday, which the German defence contractor attributed to
negative earnings contributions from its Chinese joint venture
and inflation-compensation payments to staff.
The Duesseldorf-based firm achieved operating earnings of 73
million euros ($80.9 million) in the three months through March,
below analysts' average expectations for 81.4 million, according
to a poll by Vara research.
The firm's stock, that recently joined Germany's blue chip
index fell 1.7% in early Frankfurt trade following the
results.
Rheinmetall's consolidated sales, however, grew by about
7.6% to reach 1.36 billion euros. Its order backlog stood at 28
billion euros in the first quarter, rising by 8% year-on-year.
Armament companies such as Rheinmetall have seen their
sales rise following Russia's invasion of Ukraine, as European
countries increase spending on military equipment, and due to
deliveries of weapons and battle tanks to Ukraine.
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