Rheinmetall Q2 profit beats forecasts as revenue jumps nearly 70%
Rheinmetall's Strong Second Quarter Performance
Operating Profit and Revenue Growth
BERLIN, July 29 (Reuters) - German defence contractor Rheinmetall reported a stronger-than-expected second-quarter operating profit on Wednesday as booming demand for military equipment helped drive a sharp increase in revenue across all business segments.
Operating profit climbed to €562 million ($640 million), beating market expectations of about €470 million, while revenue rose nearly 70% from a year earlier to about €3.3 billion.
Revenue Growth Expectations
Rheinmetall had already said on July 2 that it expected revenue growth of more than 60% for the reporting period.
Cash Flow and Order Backlog
Operating Free Cash Flow Outlook
The company cautioned, however, that operating free cash flow is expected to be significantly negative in the quarter because advance payments were shifted into later periods.
Order Backlog and New Contracts
Major Contract Awards
The company's order backlog exceeded €80 billion in the quarter after it recorded €11.37 billion in new contract awards and programmes, including one from the German military for loitering munitions.
Upcoming Financial Reports
The company will publish detailed half-year results on August 6.
Exchange Rate Information
($1 = 0.8782 euros)
Reporting Credits
(Reporting by Miranda Murray, editing by Thomas Seythal)