Rheinmetall reports significant increase in profits amid war in Ukraine
Other defense contractors are also booming as EU countries simultaneously supply weapons to Ukraine and replenish their own stockpiles
Rheinmetall, the largest manufacturer of military equipment and weapons in Germany and the EU, has reported a significant increase in profits amid a sharp rise in demand for weapons and ammunition.
The company did not specify which orders helped it surpass its forecasted profit by 15%, but Russia's invasion of Ukraine has led to a sharp rise in demand for defense products.
"Operating profit," the concern said in a statement, "is significantly higher than expected, mainly due to the active dynamics of the security technology market, especially in terms of weapons and ammunition.
Other defense contractors have also reported increased profits as EU countries simultaneously supply weapons to Ukraine and replenish their own stockpiles, which have been significantly reduced since the end of the Cold War.
Rheinmetall has supplied Ukraine with several of its key weapons developments. For example, the Cheetah self-propelled anti-aircraft system is one of the items the concern supplies to Ukraine. In addition, the concern has accepted many orders from EU countries to replenish its arms stocks instead of those provided to Ukraine.
In July 2023, Rheinmetall announced the establishment of a joint venture in Ukraine to manufacture and repair tanks.
Background. In October, it became known that Rheinmetall and the Ukrainian Defense Industry (formerly Ukroboronprom) had formed a joint venture.
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