Rheinmetall AG’s CEO Armin Papperger addresses the media on the Puma infantry fighting vehicles , following a meeting at the Ministry of Defence in Berlin, Germany, January 13, 2023. REUTERS
BERLIN, May 7 (Reuters) – Rheinmetall CEO Armin Papperger said on Thursday that the German defence company expects stronger growth in the second quarter in particular due to large-volume orders in the naval and vehicles business.
“With the successful acquisition of Naval Systems, we have entered a new market segment where we are also generating profitable growth,” said Papperger after the company released its final first-quarter results.
In a presentation, the company said that due diligence is expected to start soon after it submitted a non-binding offer for the shipyard German Naval Yards.
On Monday, the company said it had missed analysts’ first-quarter revenue expectations in a pre-release, but confirmed its full-year sales targets citing an expected upswing in the second quarter from production at its site in Spain and an expected delivery to the German army.
Supporting those expectations are the integration of the Naval Systems segment, which brings with it existing projects worth 5.5 billion euros, said Rheinmetall on Thursday.
Reporting by Miranda Murray, Editing by Friederike Heine