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German arms maker predicts rise in sales

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German arms manufacturer, Rheinmetall, on Thursday, predicted a rise in 2022 turnover, based largely on the German Government’s pledge to boost military expenditure in response to the war in Ukraine.

The company had previously predicted a 10-per-cent rise in turnover for military goods, which made up around two-thirds of overall output.

The Chief Executive, Armin Papperger, said from the company headquarters in Düsseldorf it now expects a rise of 20 per cent.

Papperger said “in light of the changed political situation in Europe, many countries are now intensifying efforts for security.

“With our products, we will participate in increasing budgets for military equipment.”

Rheinmetall was looking to benefit from the special fund of €100 billion euros (110 billion dollars) recently announced by Chancellor Olaf Scholz, he said.

Papperger said there had already been “significant requests’’ from Germany.

Following the start of hostilities in Ukraine, Rheinmetall presented a defence package to the German government valued at 42 billion euros, including armour, munitions and military vehicles.

Presenting figures for 2021, Papperger said operating profits had risen by around half to 608 million euros on the back of a 4.7 per cent increase in turnover, to 5.7 billion euros.

Bottom-line profits rose from 1 million euros to 332 million euros.

Apart from a wide range of military vehicles and munitions, Rheinmetall also supplies the automotive sector.

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