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Rheinmetall has posted results globally in line with expectations. It has already warned that its FY22 sales guidance would be at the lower end of the range, as Auto is facing larger than expected headwinds. The real negative news comes from the postoned German €35bn contracts, which pushes forward the expected order intake and associated sales. Losing the bid in Slovakia and Czech Republic did not help the current order intake.
Companies: Rheinmetall AG
Rheinmetall has published robust results, though globally anticipated by the market. The strong growth in Weapon & Ammuniton has resulted in a better product mix and higher margins. The order backlog of its Defence activities have increased healthily, as governments are progressively increasing their spending. Rheinmetall is still waiting for a firm order by the Bundeswehr to invest in extra capacity and start its promised revenue expansion. It has given more visibility on sales heading into FY2
Rheinmetall finished the end of the year strongly. The financial figures were heading in the right direction even before the conflict started as announcements on increasing military budgets had been made. The outlook has never been brighter for the German defence company, and we believe the short-term results will be boosted by a strong performance in Weapon & Ammunition and its high/fast capacity increase potential.
We had previously discussed that, through its exposure to Eastern European countries and its strong Defence portfolio, Rheinmetall was well set to perform extraordinarily well. The recent news of the German government doubling its defence budget should accelerate Rheinmetall’s growth and confirms the positive momentum of the stock.
Rheinmetall published an encouraging set of results, with slightly disappointing sales but better-than-expected margins. Semiconductor and other raw material shortages impacted Rheinmetall this quarter, a situation which is expected to last through at least Q4. The Piston business continues to await disposal.
Rheinmetall published a record H1 reported EBIT thanks to cost savings that were implemented in FY20 that are now paying off. The Vehicle Systems division announced a record level of backlog at €10.5bn, boosted by significant contracts in Q2. Guidance has been confirmed for FY21, but still no news on Pistons.
Rheinmetall published results above expectations in sales and margins, confirming a good start to the year. The disposal of its Piston unit will give fresh impetus to its operating margins in the mid-term. Uncertainties could arise from the German elections and the semiconductor shortage, which it is starting to notice in its Automotive sector.
Rheinmetall held an investor update call on Thursday, 4 February, on which it provided preliminary information regarding its FY20 earning as well as the key strategic objectives towards 2025.
Rheinmetall released a strong set of results that were driven by the recovery in the Automotive division and sustained by the still resilient defence business. The company achieved strong profitability and cash generation. Rheinmetall should also be supported by the better outlook for Automotive in Q4 20. We maintain our Buy rating on the stock.
Rheinmetall released its formal H1 figures, which were in line with the Q2 preliminary publication. No impact related to the pandemic is expected for the Defence sector (where guidance has been narrowed) and demand still well oriented. On the contrary, visibility is still limited for Automotive which remains the company drag, while the strategic examination of this activity should not lead towards a spin-off.
Rheinmetall released a set of preliminary results that were well above the company-compiled consensus, on the back of better cost management than anticipated for the Automotive segment and strong Defence earnings. In addition, the company is mulling over strategic options in the Automotive sector.
The results were heavily impacted by Automotive, though the segment performed slightly better than the overall market, with a positive surprise on cash consumption. Overall, the results were in line with consensus, thanks to the Defence activities which more than compensated for Automotive’s weaknesses. Automotive’s guidance is withdrawn, no big surprise there, though we will adjust downwards our estimates for this segment.
We held our pre-quiet period call with the company, which gave us a rather negative picture of its Automotive prospects. While Defence is expected to remain robust, this might not be enough to compensate for Automotive’s drop.
Rheinmetall released its full figures for FY19, which were in line with preliminary figures. In addition, the company released its 2020 guidance, which fell behind the consensus on the back of the declining automotive market. For 2020, Defence will remain the main contributor to Rheinmetall’s performance.
Rheinmetall published preliminary FY19 results which were very much in line with estimates, with a positive surprise on both profitability and cash generation.
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