DÜSSELDORF (dpa-AFX) - According to initial calculations, the armaments group and automotive supplier Rheinmetall achieved a record operating result last year. The operating margin is therefore likely to be better than previously thought, the group surprisingly announced in Düsseldorf on Friday on the basis of preliminary figures. Organic growth, on the other hand, is not likely to have been quite as strong as expected. According to Rheinmetall, this is due to both the slower recovery in global car production and the fact that some orders in the defence business have been postponed until 2023. The MDax-listed stock then jumped briefly, but has since given back some of the gains. Most recently, it was still up 3.2 percent.

Rheinmetall generated sales of 6.4 billion euros last year, around 13 percent more than a year earlier. This figure does not include the piston business, which has already been partially sold. This means that growth has accelerated; in 2021, sales had only increased by around 5 percent. In terms of operating profit, the Group expects an increase of more than 20 percent in 2022, which would be well over 700 million euros. The final figures are to be presented on March 16.

In organic terms - i.e. excluding currency effects and acquisitions or divestments - however, revenues increased by only 10 percent last year. This was less than the forecast 15 percent. One of the reasons given by the company for this unexpectedly weak development was that it had invested heavily. Already finished goods were still in stock and the call-off by customers was postponed until 2023.

One example of such advance investments are older Marder infantry fighting vehicles that have been or are still being modernized by Rheinmetall. Following a decision by the German government, Germany could soon make these vehicles available to Ukraine.

Rheinmetall has also already produced ammunition on a large scale because its sale seems certain in view of the consequences of the Ukraine war and the increased demand. In addition, Rheinmetall spent a lot of money to increase its stocks of important primary products - semiconductors, for example.

Rheinmetall also operates as an automotive supplier. The company faced headwinds in that division as global auto production cooled.

The group has about 25,000 employees. Rheinmetall makes artillery, tanks, air defense, military trucks and ammunition. Its headquarters are in Düsseldorf and its largest German plant is in Unterluess in Lower Saxony./lew/wdw/DP/ngu