Rheinmetall confident of hitting 'at least' full-year targets

BERLIN (Reuters) -German defence group Rheinmetall will at the very least hit its full-year sales and earnings targets after a strong first half as demand for weapons in Europe remains unabated after Russia's invasion of Ukraine in 2022.

"We have never seen such growth," said Chief Executive Armin Papperger, reportedly the target of a Russian assassination plot for his role in supporting the West's efforts in Ukraine.

"After six months of the 2024 fiscal year, Rheinmetall is confirming at least the sales and earnings forecast for 2024," said the maker of Leopard 2 tanks.

It has guided for record sales of 10 billion euros and an operating profit margin of 14-15% this year.

Papperger said on Thursday that Rheinmetall now expects annual sales growth of around 2 billion euros in coming years.

Sales rose nearly 50% in the second quarter, to 2.23 billion euros, the company said, confirming preliminary results released last month that also saw operating profit double in the quarter and reported earnings after taxes at 79 million euros.

Its backlog, which includes potential orders from contracts with civilians and call-offs expected from framework agreements with military customers, was up 62% to 48.6 billion euros ($53.12 billion) in the first half of this year, it said.

($1 = 0.9148 euros)

(Reporting by Miranda Murray, Editing by Rachel More)

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