Rheinmetall AG / Key word(s): Change in Forecast/Profit Warning
03.11.2014 15:42
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Rheinmetall AG is lowering its 2014 forecast for the Group operating result
(EBIT before special items) to EUR150 million. The previous forecast for
the Group operating result in the current fiscal year was between EUR200
million and EUR220 million. This adjustment is based on earnings in the
Defence sector that are considerably weaker than expected and an increase
in the previous forecast for the Automotive sector.
In the Automotive sector, an operating result of EUR180 million is now
expected from continuing operations, i.e. not including the
Aluminium-Technologie business unit, which is being contributed to a joint
venture. Previously, the corresponding forecast was between EUR155 million
and EUR165 million. According to the new forecast for the Automotive
sector, Rheinmetall expects to achieve annual sales of around EUR2.4
billion, which would correspond to the upper end of its previous sales
forecast of EUR2.3 billion to EUR2.4 billion. The Automotive sector, which
will therefore generate more than half of the Group's sales once again, is
also growing faster than global automotive production in the current fiscal
year. The sector is benefiting from the high level of demand for products
for reducing fuel consumption and emissions and from rising profitability
following the restructuring measures that were successfully conducted last
year.
For the Defence sector, Rheinmetall is lowering its previous sales forecast
for 2014 from EUR2.3 billion to around EUR2.2 billion, largely due to the
delays in the export business and the weak overall performance of the
market. In terms of the operating result in the Defence sector, Rheinmetall
is now anticipating a moderate loss of EUR-10 million before special items.
A positive operating result of between EUR65 million and EUR75 million had
previously been forecast for the Defence sector. Around half of the
adjustment to the earnings forecast is due to lower sales as a result of
export licenses that have been delayed or not granted and the generally
weaker state of the market. Unexpected cost overruns in development
projects at a Scandinavian subsidiary, the provision for potential warranty
claims from a deal with naval weapons and a deterioration in the product
mix were also factors in the adjustment of the operating earnings forecast
for fiscal 2014.
In addition, Rheinmetall is currently expecting non-operating special items
to amount to EUR20 million in 2014, having previously forecast negative
special items of EUR10 million. As well as subsequent expenses from the
restructuring program in the previous year, these special items include
unplanned expenditure in connection with the final contractual step in the
sale of the Unmanned Aerial Systems product unit that took place in 2012.
Not yet included in this figure are the potential negative financial
effects expected as a result of administrative offense proceedings against
a Rheinmetall subsidiary in Bremen in connection with corruption inquiries
in Greece.
In the first three quarters of 2014, Rheinmetall increased its consolidated
sales by around 9% to EUR3,215 million. Earnings before interest and taxes
(EBIT) improved by EUR25 million to EUR23 million in the first nine months
of the year. Rheinmetall will publish its confirmed figures for the third
quarter of 2014 on November 6, 2014.
03.11.2014 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Rheinmetall AG
Rheinmetall Platz 1
40476 Düsseldorf
Germany
Phone: +49 (0)211 473-4718
Fax: +49 (0)211 473-4157
E-mail: franz-bernd.reich@rheinmetall.com
Internet: www.rheinmetall.com
ISIN: DE0007030009
WKN: 703000
Indices: MDAX
Listed: Regulierter Markt in Berlin, Düsseldorf, Frankfurt (Prime
Standard), Hamburg, München, Stuttgart; Freiverkehr in
Hannover
End of Announcement DGAP News-Service
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