stockmarketwalk In the shadow of the military conflict in Ukraine, Rheinmetall benefits from high demand for ammunition and defense technology. Its defense segment offers among others protection and weapon systems, air defense systems and infantry equipment.
The automotive segment has been performed outstanding in recent months, but the prospects here are now clouding over. The CEO Armin Papperger cut back the sales forecast, which negatively surprised investors on the stock market.
The reason is mainly the persistently high risks in the automotive production. The supply-chain disruption and the semiconductor shortages cause difficulties in the German automotive production, which has been getting complicated due to the war in Ukraine and the Covid-19 lockdowns in China in the last few months.
However, these uncertainties are causing troubles in the automotive markets worldwide. Although Rheinmetall is still anticipating a recovery in international car production over the course of the year, the recovery is likely to be much slower than expected at the beginning of this year.
The company now expects organic sales growth in the current fiscal year of around 15%, the defense segment still expects orders of 13 to 15 billion euros in fiscal year, which still would be a strong jump after the €4.8 billion from last year .
Key takeaways:
- Revenue in 2021 – €5,7 billion
- expected organic sales growth in 2022 is around 15%
- the defense segment still counts with orders of 13 to 15 billion euros in 2022
The Rheinmetall share price came under strong pressure. With a price loss of 11.79 percent to €166.85, the stock was the largest outlier among flops in the MDAX, the index of medium-sized stocks. Rheinmetall attracted particular attention from investors following the escalation of the military conflict in Ukraine.
Price history:
- 52 week high price €227,9
- 52 week low price €76,3
Source: Finanzen.net, Reuters
