Growth in sales and earnings
For the first nine months of 2016, auto-industry supplier Rheinmetall Automotive reports sales of €1,992 million, up 2 percent on 3Q/2015. Horst Binnig, CEO of Rheinmetall Automotive, comments: "Our sustained growth in sales, in the third quarter as much as 4 percent, has shown once again that our portfolio is well matched to the current requirements of the international auto-industry markets. We will utilize our success in further expanding this sound position with respect to systems for powering the cars of tomorrow. Our profitability, which continues to be high, is assisting our efforts." For the period under review, Rheinmetall reports an EBIT of €163 million and an operating margin of 8.2 percent, again slightly above the 8-percent target.
The increase in sales is driven by the Mechatronics and Aftermarket divisions. The former continued to grow and raised sales to €1,141 million (up 5 percent). The Aftermarket division generated sales of €225 million (up 4 percent). Currently weak demand for large-bore pistons and the ongoing sharp decline in auto production in Brazil depressed sales by Hardparts from €727 million in 2015 to €699 million.
Not included in the sales figures of the Automotive sector are the joint ventures in China, which in the course of 3Q/2016 boosted sales by 6 percent from €587 million to €620 million. The wholly owned subsidiaries in China stepped up their sales by 16 percent to €74 million.
For all of 2016, Rheinmetall Automotive is re-affirming its sales forecast of around €2.7 billion. In addition, the Company expects profitability to remain on a stable trend, with an operating margin of around 8 percent.