Shares of Rheinmetall came under heavier pressure than other defense stocks on Thursday, following a meeting between company representatives and analysts.
The DAX-listed shares dropped as much as 9.5 percent to €1,520.50, reaching their lowest level in over five weeks. This put them on course for their biggest single-day loss in more than ten months. Experts at Berenberg noted in a market commentary that the company had provided analysts with a preliminary sales outlook of €13.6 billion for the current year during the meeting. This figure fell short of expectations and was described as "disappointing" by Berenberg. A Rheinmetall spokesperson explained that the figures mentioned on the call were preliminary estimates that would be further developed.
The situation could potentially even attract the attention of financial regulator BaFin. The supervisory authority routinely reviews unusual price movements "to check whether there are indications of market abuse," a spokesperson said.
(Reporting by Emanuele Berro, Anika Ross and Matthias Inverardi, edited by Ralf Banser. For questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).
Rheinmetall AG specializes in the design, manufacture and marketing of equipment, components and solutions for the military and civilian industries. Net sales break down by family of products as follows:
- vehicle systems (38.7%): multi-purpose wheeled and tracked vehicles (tactical military vehicles, support vehicles, logistics vehicles and special vehicles);
- weapon and ammunition systems (26%): automatic cannons for land, air and sea vehicles, smooth-bore weapons, artillery systems, smart projectiles, high-energy lasers, etc.;
- sensors, actuators and power systems (20.8%): actuators, exhaust gas recirculation systems, throttle valves, exhaust gas dampers for electric motors, solenoid valves, pumps, etc. used in thermal and fluid management applications in the mobility and industrial sectors;
- electronic solutions (13.5%): sensors and networking systems, cyberspace protection solutions, air defense systems, radar systems, technical documentation solutions, integrated electronic systems, drones and automated ground robots, training and simulation solutions;
- other (1%).
Net sales are distributed geographically as follows: Germany (30.4%), Europe (46.6%), Asia and Middle East (9.6%), Americas (7.6%) and other (5.8%).
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