Rheinmetall Prelim. Q3 Operating Result Declines; Cuts Sales Outlook On Shortage Of Semiconductors

Rheinmetall AG (RNMBF.PK) said, based on preliminary figures, third quarter operating result will be around 106 million euros, compared to 109 million euros, last year. The Group tentatively expects sales of 1.258 billion euros, almost exactly the same as 1.261 billion euros, prior year. The company noted that the sluggish trend in third quarter sales growth is due essentially to the limited availability of raw materials and semiconductors, which led to reduced call-offs from important customers.

For 2021, Rheinmetall expects to reach the upper range of its projected operating profit margin of 9 percent to 10 percent, and now expects operating profit margin to be around of 10 percent. The company has now scaled back its forecast for sales growth to around 6 percent, slightly lower than the previous forecast of 7 percent to 9 percent.

Rheinmetall also noted that its previously announced process of divesting small- and large-bore pistons operations continues, with no result as yet.

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