(Bloomberg) -- Rheinmetall AG’s profit soared 111% in the second quarter as Germany’s biggest arms maker sold more weapons and ammunition to military clients.
Operating earnings jumped to a better-than-expected €271 million ($294 million) after revenue rose by around half, the company said Wednesday.
Rheinmetall is among a number of European weapons contractors that has seen sales surge amid the growing threat from Russia and questions around the US commitment to the NATO military alliance.
The company, which plans to build an ammunition factory in Ukraine, has had a turbulent few weeks. American and German security services foiled a Russian plot to assassinate Rheinmetall’s Chief Executive Officer Armin Papperger, Bloomberg reported earlier this month. He has been given special protection as a result.
The manufacturer’s weapons and munitions division — which it bolstered by acquiring Spanish ammunition producer Expal — remains a key growth driver. Nominations rose to €11.4 billion, from €3.9 billion in the first quarter, after strong ordering mainly from the German Bundeswehr.
Nominations comprise traditional orders as well as volume from future call-offs under new framework agreements with military customers and contracts with civilian clients.
Rheinmetall shares rose as much as 3.4% in Frankfurt. They’re up around 76% this year.
Also on Wednesday, the German defense contractor said it received its first order from the Ukrainian government for a planned ammunition factory in the country. The triple-digit-million-euro deal for technical equipment means the facility will be built, with output due to start within 24 months.
Despite the positive preliminary second-quarter figures, Rheinmetall didn’t raise its annual outlook. Its first-quarter results had disappointed investors, and the company still sees an operating margin of between 14% and 15% for the full year, up from 12.1% in the second quarter.
The company is scheduled to report more detailed financial results for the second quarter on Aug. 8.
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