The operating result in the defence unit, which has won a string of orders from the German armed forces, jumped 53 percent to 46 million euros (40.56 million pounds), beating the 35 million euros forecast by analysts in a Reuters poll.

Defence sales were also boosted by an Australian contract for military utility vehicles, Rheinmetall said.

At its automotive unit, the operating result rose 12 percent to 57 million euros, broadly in line with expectations.

Group EBIT fell 5 percent to 75 million euros, missing the 87 million in a Reuters poll, weighed down by restructuring costs.

Rheinmetall reiterated its full-year outlook for an operating earnings margin of slightly over 6.5 percent on organic sales growth of around 6 percent.

Shares in Rheinmetall were indicated down 0.2 percent ahead of the 0800 GMT Frankfurt market open.

(Reporting by Georgina Prodhan; editing by Douglas Busvine and Jason Neely)