Germany's TKMS hits record $24 billion order backlog as defence boom continues
TKMS Reports Record Order Backlog Amid Rising Global Defence Spending
FRANKFURT, May 11 (Reuters) - TKMS's order backlog hit a fresh record, the German warship builder said on Monday, as demand for weapons continues to surge across European to cut military dependence on the United States.
Company Background and Market Performance
TKMS, which is majority-owned by German engineering conglomerate Thyssenkrupp, has been riding a boom in defence stocks following a stock market listing in October.
Impact of Global Conflicts on Defence Spending
"The Russian war of aggression against Ukraine and the military conflicts in the Middle East between Israel, the USA and Iran have led to a permanent increase in global defence spending," the company said in its quarterly report.
Financial Highlights and Order Backlog Growth
Its order backlog rose to 20.6 billion euros ($24.2 billion) at the end of March, up from 18.7 billion at the end of December, the company said. The submarine and sonar technology divisions helped it to post higher-than-expected first-half sales and profits, it added.
Profit and Sales Performance
Adjusted operating profit during the six months through March rose 13.2% to 60 million euros, while sales climbed 10.2% to 1.17 billion. Analysts in a company-provided poll had, on average, expected operating profit of 59 million euros and sales of 1.10 billion.
Stock Market Response
Shares in the company, which have gained nearly one fifth year-to-date, were indicated to open 2.2% in pre-market trade at 0538 GMT.
Additional Information
($1 = 0.8508 euros)
($1 = 0.8508 euros)
(Reporting by Christoph SteitzEditing by Ludwig Burger)