Rheinmetall Automotive’s performance was influenced by weaker business in the international automotive industry again in 2019. The sales sank from €2,930 million in 2018 to €2,736 million in 2019, a reduction of 6.6%. According to the latest market data, global automotive production shrank by nearly 6% in the same period.
As a result of the drop in sales, the operating earnings (EBIT before special items) amounted to €184 million in the past fiscal year, after a record high of €262 million in the previous year. The operating margin consequently fell to 6.7% after 8.9% in the previous year.
Armin Papperger, Chief Executive Officer of Rheinmetall AG: “With our our cost efficiency in the Group’s financial resources, we are well prepared for the challenges we face. In addition, we are in a good position to build on our earlier success once the global automotive markets stabilize after the corona crisis. We will continue to benefit from rising demand for environmentally friendly mobility with our products for reducing consumption and emissions. At the same time, we are selectively expanding our activities in the field of alternative drives, so that we can continue playing an important role as a development partner to the international automotive industry in the future.”
All three sector divisions of Rheinmetall Automotive suffered a decline in sales compared with the previous year. Due to the weak performance of the international automotive industry, the ongoing drop in demand for diesel products for the passenger car market was not offset, as in the previous year, by other product groups such as applications for trucks and gasoline drives. As a result, new product launches were postponed or took place on a smaller scale than anticipated.
In the Mechatronics division, sales declined in the Automotive Emission Systems and Solenoid Valves product areas in particular. In the Hardparts division, sales of small-bore pistons declined in the markets of North America and Brazil, while the European sales market proved weak with regard to plain bearings. In contrast, the Aftermarket division performed well in its global markets overall, with only a slight drop in sales.
The joint ventures in China generated sales totaling €1,010 million in fiscal 2019. Compared with the previous year, this represents growth of 16%. Once again, the companies, which are not included in the Group’s consolidated sales, therefore significantly outperformed the Chinese passenger car market, which registered a 4% decline in production in 2019.
The Executive Board and Supervisory Board will propose increasing the dividend to €2.40 per share at the Annual General Meeting on May 5, 2020. This corresponds to a distribution ratio of approximately 31%. A dividend of €2.10 per share was paid in the previous year.
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SOURCE: Rheinmetall Automotive
