Rheinmetall presents provisional figures for the 2012 fiscal year: Consolidated sales grow to €4.7 billion, orders up 60% in Defence
- Consolidated sales climb 6% to €4,704 million
- Growth in both corporate sectors
- Defence increases order intake by €1.1 billion to almost €3 billion
- Automotive achieves growth with products to reduce emissions and consumption
- Second-highest ever earnings (EBIT) of €301 million
Düsseldorf-based Rheinmetall AG generated consolidated sales of €4,704 million in fiscal 2012, representing growth of €250 million or around 6% year-on-year. Earnings before interest and taxes (EBIT) totaled €301 million, according to provisional figures. The company has to date performed better only in the record year of 2011, when EBIT amounted to €354 million. Orders in the Defence sector reached a new record, growing by 60% year-on-year to almost €3 billion.
Rheinmetall increased its sales in a more difficult market environment for both sectors. The Automotive sector grew by around 2%, despite a substantial decline in automobile production on its established markets in Western Europe. If the non-consolidated joint ventures in China are included, the level of growth was almost 6%. Meanwhile, the Defence sector increased its sales by a total of €194 million or 9%, owing to the first-time consolidation of the military logistics vehicles business from its joint venture with MAN.
Record orders in Defence
The Defence sector achieved sales of €2,335 million in fiscal 2012 (previous year: €2,141 million). Growth in sales was particularly striking in the fourth quarter of 2012, when sales totaled €865 million, surpassing the previous year’s strong figure of €771 million by 12%. The sector’s order intake grew significantly, despite cuts to defence budgets in many countries owing to budget consolidation. In total, the Defence sector received new orders worth €2,933 million in 2012, representing robust growth of €1,102 million year-on-year (previous year: €1,831 million).
Of the order intake for the year as a whole, €1,355 million related to the fourth quarter (previous year: €528 million). This high order intake is a result of the internatio-nalization strategy followed by the sector, which has systematically expanded its global network of locations and sales in recent years. At €4,987 million, the order backlog in the Defence sector is up 10% year-on-year (previous year: €4,541 million), reaching a new record.
Following three weaker quarters, the sector’s operational earnings performance made up lost ground in the fourth quarter of 2012, but restructuring costs had to be considered. Earnings before interest and taxes (EBIT) for the year as a whole totaled €174 million, a drop of 22% compared with the previous year (€223 million). EBIT for 2012 includes non-operational effects of €28 million. While the sale of the majority stake in the drones business had a positive impact of €48 million, this was partially offset by restructuring costs of €20 million, mainly for business with tracked vehicles and air defence.
Automotive successful with Mechatronics and in China
The Automotive sector with the management company KSPG AG increased its sales by €56 million to €2,369 million in fiscal 2012 (previous year: €2,313 million). Sales of the Chinese joint venture, which is not included in these figures, grew by €92 million to €390 million. At 30%, this sales growth in China is well above the level of growth in Chinese automobile production, which totaled 8% last year. Growth in the Automotive sector was driven mainly by products from the Mechatronics division, such as variable oil and coolant pumps, exhaust gas recycling systems and solenoid valves, aimed at reducing emissions and consumption.
Earnings before interest and taxes (EBIT) of the Automotive sector totaled €143 million, falling €8 million short of the previous year's level.
Rheinmetall will publish the final figures for the 2012 fiscal year on 20 March 2013.
Rheinmetall AGDr. Philipp von Brandenstein
Head of Corporate Communications
Rheinmetall Platz 1
Phone: +49 211 473-01
Fax: +49 211 473-4158