Ad-hoc: Rheinmetall updates outlook for 2014
Changes in the Group’s portfolio and the cancellation of an export permit for Russia have led to an update in the overall annual forecast for Rheinmetall AG for fiscal 2014.
Sales – Due to the contribution of the Aluminium-Technologie business unit to a joint venture with the Chinese company HUAYU Automotive Systems Co. Ltd (HASCO), sales of approximately €200 million which were included in the original sales forecast no longer apply to the Automotive sector or the Rheinmetall Group.
As a result, Rheinmetall now expects the Group to achieve sales of between €4.6 billion and €4.7 billion in the current fiscal year (previously: €4.8 billion to €4.9 billion) and the Automotive sector sales of between €2.3 billion and €2.4 billion (previously: €2.5 billion to €2.6 billion). The Defence sector is expected to achieve sales of around €2.3 billion over 2014 as a whole on the basis of the high order backlog, even in a difficult market environment.
Operating result – As a result of the planned joint venture with HASCO and the associated loss of sales from the Aluminium-Technologie business unit, Rheinmetall has also updated the forecast for the Automotive sector’s operating result in fiscal 2014, lowering it by €10 million to between €155 million and €165 million. However, provided that the development of global automotive production proves just as robust up to the end of the year as it did in the first six months, the original forecast for the operating result of between €165 million and €175 million may still be achieved, despite reclassifying the Aluminium-Technologie business unit.
Due to the fact that the export license for the Mulino combat training center in Russia has been withdrawn owing to changes in the political environment, it is no longer possible to fulfill the respective contract from today’s perspective. Rheinmetall already assumes that this will lead to financial burdens in the current fiscal year. The forecast for the Defence sector’s operating result has therefore been adjusted from between €85 million and €95 million previously to between €65 million and €75 million. However, Rheinmetall is working hard to ensure that these burdens are kept as low as possible including the utilization of all available legal options.
Consequently, Rheinmetall expects the Group to achieve an operating result (EBIT) of between €200 million and €220 million in fiscal 2014 (previously: €230 million to €250 million).
Rheinmetall AGDr. Philipp von Brandenstein
Head of Corporate Communications
Rheinmetall Platz 1
Phone: +49 211 473-01
Fax: +49 211 473-4158