He added that the year 2022 was record and close to purchase orders at 30 billion euros, indicating that the results of the fourth quarter will exceed even the first three quarters that witnessed good results.
The war in Ukraine revived the ambitions of defense companies around the world, especially those linked to the countries supporting Kiev, which need to replenish their stocks to appropriate levels, in light of the erosion of those stocks, which pushes them to buy more weapons, which was a motive for increasing demand in The year is 2022.
This was reflected in the shares of defense companies in Europe, which were among the most profitable during the year 2022; In Germany, for example, the shares of the Rheinmetall group rose about 140 percent during the year, and the shares of the Hensoldt company rose by 90 percent, according to the Financial Times, which quoted the head of Hensoldt as saying, “The situation in Ukraine has changed the business model in the defense industry … Weapons are produced without prior orders, against the backdrop of accelerated demand.
Shares of other European defense companies also rose, including Thales, Dassault Aviation and SABB, achieving gains ranging from 60 to 80 percent, according to Bloomberg Agency, amid expectations of further recovery for this sector in the coming period.
In statements to Reuters, the CEO of the German company Rheinmetall for defense industries, which sells a wide range of defense products, perhaps the most famous of which is the 120-millimeter gun for Leopard 2 tanks, said, “We are approaching purchase orders at 30 billion euros, and I expect to see purchase orders at 40 billion for the following year.” .
Papberger said he expects growth of at least 15-20 percent in the company’s defense division in the coming years, while civil works are likely to account for only 20 percent of sales in 2025.
Papberger on Tuesday raised the group’s medium-term sales forecasts, amid estimates of a windfall from higher defense spending due to the war in Ukraine.
Rheinmetall is seen as a strong candidate to join the German DAX index.
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