RheinMetall is waiting for sales increasing on the background of increasing Europe's costs for defense

< IMG SRC = "/Uploads/Blogs/E0/56/IB-FQTJI1TB5_5A5C26C8.jpg" Alt = "RheinMetall is waiting for sales on the background < p > rheinmetall AG predicts that sales and operating profit will continue to grow this year. German weapon manufacturer will benefit from a sharp increase in defense costs in Europe.

< p > reports RBC-Ukraine with reference to Bloomberg.

< p > rheinmetall predicts the increase in revenue by 25-30%. In its main defense business, sales growth will reach 40%.

< p > “in Europe began an era of re -equipment that will require a lot from all of us,” – said CEO Armin Papperger.

< p > rheinmetall is ready to become a great beneficiary of the European Armed Book, which was caused by war against Ukraine and recent America threats to give up its continent security obligations. The new government of Germany plans to unlock hundreds of billions of euros on military expenses and pushes EU leaders to follow its example.

< p >RheinMetall shares have increased more than twice in the last year as the company has expanded production and created a huge book of orders for its ammunition and military vehicles.

< p > last year consolidated sales increased by 36% to approximately 9.75 billion euros. The defensive contractor also published a record order portfolio of 55 billion euros above 38.3 billion euros in the previous year.

< p > rheinmetall produces everything from armored trucks and drones to 120 mm smooth-barrowing gun Leopard 2. The company builds new factories in countries such as Lithuania, Hungary, Romania and Ukraine to satisfy the growing demand for its harvest. < P > Company's shares have increased by more than 1000% since Russia invaded Ukraine in February 2022. Bae Systems, Thales and Leonardo Competitors also flew. Leonardo stated that it expects orders worth 118 billion euros over the next five years, as Europe increases defense costs to fill out the likely void left USA.

~ < P > Last month, Papperger met with President of Ukraine Vladimir Zelensky to discuss the expansion of the company's presence in Ukraine. Papperger and Zelensky discussed joint projects, including those concerning the production of 155mm ammunition in Ukraine.

< p > Currently, Papperger is under the same level of protection as the German Chancellor after the United States has revealed a Russian conspiracy for the purpose of its murder.