Rheinmetall Expects Sales Growth, Flat Earnings In 2012
03/21/2012| 04:55am US/Eastern
German defense and automotive equipment company Rheinmetall AG (>> Rheinmetall AG) Wednesday said it aims for sales of EUR4.9 billion in 2012 from EUR4.45 billion in 2011, and 2012 earnings before interest and taxes to be at the same level as 2011's EUR354 million.
-In 2012, the company expects "somewhat weaker earnings development in the defence sector," however it foresees a slight improvement in earnings for the automotive sector.
-Rheinmetall expects growth in sales and earnings in 2013.
-In 2011, earnings per share increased 31% on the year to EUR5.55.
-Net income increased 29% on the year to EUR225 million.
-The company proposed a dividend of EUR1.80 from EUR1.50 in the previous year.
-In 2011, sales increased 12% on the year to EUR4.45 billion, with 17% sales growth in the automotive division.
-EBIT increased 19% on the year to EUR354 million.
-In 2012, the company expects the automotive sector's sales to grow in North and South America and in Asia while production volumes in Western Europe are expected to drop, leading to overall sales growth of about 5% to slightly over EUR2.4 billion for the unit.
-Lower defence expenditure in some European countries and the U.S. in 2012 means the defence sector is expecting sales slightly down on the previous year's level, however the addition of logistical vehicle sales in the Rheinmetall MAN Military Vehicles joint venture, to be fully included in accounting from the start of 2012, means Rheinmetall is anticipating sales of approximately EUR2.5 billion for the defence sector in 2012, following EUR2.1 billion in 2011.
-At 0938 GMT, Rheinmetall shares traded down 1.1% while Germany's MDAX was up 0.4%.
-Frankfurt Bureau, Dow Jones Newswires; 49-69-29725-500
Order free Annual Report for MAN SE
Visit http://djnweurope.ar.wilink.com/?ticker=DE0005937007 or call +44 (0)208 391 6028
Order free Annual Report for Rheinmetall AG
Visit http://djnweurope.ar.wilink.com/?ticker=DE0007030009 or call +44 (0)208 391 6028