Maintaining high profitability

Rheinmetall Automotive outpacing the market

The Rheinmetall Group in Düsseldorf is forecasting continued growth in organic sales and a further increase in operating earnings in its Automotive division for fiscal 2018.

Rheinmetall Automotive tangibly increased its business volume in 2017, generating sales of €2,861 million, an increase of €205 million or 8% compared to the previous year. This increase is significantly higher than the growth in the global production of light vehicles of 2.1%.

All three divisions contributed to sales growth. Sales in Mechatronics rose by 9% to €1,621 million in the reporting year thanks to high demand for products that reduce emissions and fuel consumption. Sales by the Hardparts division increased by 5% to €968 million, due in particular to a recovery in demand in large-bore piston business. The Aftermarket division’s business expanded by 11% to €359 million.

The contributions to sales made by the segment’s three divisions were largely unchanged. Mechatronics again had the highest share of sales at 55% (previous year: 54%) in fiscal 2017. Hardparts contributed 33% of sales (previous year: 34%) with Aftermarket – as in the previous year – accounting for 12%.

Automotive’s operating earnings amounted to €249 million in the past fiscal year, a year-on-year increase of €26 million or 12%. Mechatronics made the strongest contribution to operating earnings at €176 million. With an operating margin of 8.7%, Automotive outperformed the previous year’s solid 8.4%. Including a non-recurring effect of €-22 million for the closure of the piston plant in France, reported EBIT amounted to €227 million.

Automotive’s 50/50 joint ventures in China, whose sales are not included in Rheinmetall’s consolidated figures, continued to develop well in fiscal 2017. The joint ventures’ income increased by 7% in local currency to CNY 6,447 million (2016: CNY 6,037 million), with general production growth in light vehicles in China of around 2%. The wholly owned subsidiaries in China that are included in consolidation enjoyed an even more dynamic performance, with sales surging by 21% in fiscal 2017 to CNY 969 million (2016: CNY 798 million). Translated into euro, the Chinese joint ventures’ income rose by 2% from €825 million to €845 million. The sales of the wholly owned subsidiaries expanded by 17% from €109 million to €127 million.

Outlook

Sales performance in the Automotive segment is crucially influenced by economic developments on the key automotive markets of Europe, North and South America and Asia. Based on current expert forecasts for trends in global automotive production this year, which anticipate increases of around 2%, Rheinmetall Automotive expects to achieve sales growth of between 3% and 4%. Assuming stable economic developments, Rheinmetall anticipates an improvement in operating earnings in absolute terms and an operating margin of around 8.5% in Automotive in fiscal 2018.

 

Forward-looking statements and forecasts

This press release contains forward-looking statements. These statements are based on Rheinmetall AG’s current estimates and forecasts and the information available at the time. Forward-looking statements should not be understood as a guarantee of the future developments and results mentioned in this press release. Rather, they depend on a number of factors, involve various risks and imponderables, and are based on assumptions that may not prove to be accurate. Rheinmetall is under no obligation to update the forward-looking statements made in this press release.

Use of cookies and data protection

Rheinmetall Automotive uses cookies saved to your device in order to optimize and continuously improve its websites, as well as for statistical purposes. Further information on our use of cookies can be found here, together with our publication details and data protection notice.

By clicking on “OK” you confirm that you have taken note of the information on cookies, the data protection declaration and the publication details. You can also change your cookie settings for this website at any time.

Privacy settings

We place great importance on transparent information relating to all aspects of data protection. Our website contains detailed information on the settings you can select and what effect these settings have. You can change your selected settings at any time. Regardless of the selection you choose, we will not draw any conclusions regarding you as a person (except where you have explicitly entered your details). For information on deleting the cookies, please see the help function in your browser. You can find out more in the data protection declaration.

Change your privacy settings by clicking on the corresponding buttons

Necessary

Cookies essential for the system ensure that the website works correctly. Without these cookies, malfunctions or error messages may occur.

This website will:

  • Store cookies required by the system
  • Store the settings you make on this website

This site will never do the following without your agreement:

  • Store your settings, such as the language selection or cookie banner, so that you do not have to repeat them in the future.
  • Evaluate visits anonymously and draw conclusions to help us to optimize our website.
  • Draw conclusions regarding you as a person (except where you have explicitly entered your details, e.g. in contact forms)

Convenience

These cookies make the website easier to use and save settings, for example, so that you do not have to repeat them every time you visit the site.

This website will:

  • Store cookies required by the system
  • Store your settings, such as the language selection or cookie banner, so that you do not have to repeat them in the future.

This site will never do the following without your agreement:

  • Evaluate visits anonymously and draw conclusions to help us to optimize our website.
  • Draw conclusions regarding you as a person (except where you have explicitly entered your details, e.g. in contact forms)

Statistics

Statistics cookies enable us to evaluate the usage behaviour on the website anonymously – without enabling any conclusions to be drawn about you as a person. This enables us to measure the performance of the website and to improve it continuously to offer a better user experience.

This website will:

  • Store cookies required by the system
  • Draw conclusions regarding you as a person (except where you have explicitly entered your details, e.g. in contact forms)
  • Evaluate visits anonymously and draw conclusions to help us to optimize our website.

This site will never do the following without your agreement:

  • Draw conclusions regarding you as a person (except where you have explicitly entered your details, e.g. in contact forms)

Of course, we will always respect the do-not-track (DNT) setting in your browser. In this case, no tracking cookies are set and no tracking functions are loaded.