Rheinmetall AG / Key word(s): Change in Forecast/Profit Warning
29.07.2013 18:00
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
For the Defence division, Rheinmetall AG is reducing the sales and earnings
guidance for the year as published in March 2013, but is confirming the
outlook for Automotive.
Despite the fact that operating earnings (before restructuring measures)
improved greatly in the second quarter of 2013 compared with the first
quarter, Rheinmetall no longer expects that it will achieve the original
forecast for the Defence division of EUR 130 million in operating EBIT. The
forecast for operating EBIT in Defence is being reduced to a range between
EUR 60 million and EUR 70 million. A decisive factor is the annual sales
forecast for Defence, which has been reduced by approximately EUR 100
million from EUR 2.4 billion to EUR 2.3 billion. The main reason lies in
budget cuts in key customer countries, pertaining mainly to the munitions
business, in which short-term demand fell short of expectations.
Rheinmetall also anticipates additional acquisition costs for
high-volume programs, as well as higher execution costs for some orders.
In all, incoming orders from the Defence division remained satisfactory. In
the first half of 2013, new orders amounting to EUR 1.282 billion were
acquired, representing EUR 144 million or 13% more than in the previous
year. The order backlog at the end of H1 2013 was EUR 5.383 billion - a 17%
year-on-year increase and thus a record high. This does not regard the
recent order for EUR 1.1 billion for military trucks from Australia which
will be included in the Q3 figures.
For the Automotive division, Rheinmetall - following good business growth
in Q2 2013 - expects to achieve the original forecast. With expected sales
for 2013 of between EUR 2.4 billion and EUR 2.5 billion, EBIT before
restructuring measures is estimated at some EUR 140 million.
For the Group, Rheinmetall expects annual sales of between EUR 4.7 billion
and EUR 4.8 billion and EBIT before restructuring measures of between EUR
180 million and EUR 200 million. The original forecast was EUR 240 million
to EUR 260 million.
Restructuring expenses for both divisions are expected to be EUR 75 million
to EUR 85 million for the 2013 financial year. Of this, EUR 35 million will
be for Automotive and EUR 40 million to EUR 50 million for Defence.
Rheinmetall will publish the final figures for the first half of the 2013
financial year on August 9, 2013.
29.07.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
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
---------------------------------------------------------------------------