Rheinmetall AG announced earnings results for the first quarter of 2016. For the quarter, the company generated consolidated sales of €1,180 million against €1,173 million a year ago. Earnings before interest and taxes (EBIT) increased from €22 million to €31 million, growing by €9 million or approximately 40%. Operating earnings for the Group improve by €9 million to €31 million.

In 2016, the company expects the growth to continue and sales to rise by more than 5% to around €5.5 billion, compared with about €5.2 billion in 2015. The company anticipates further improvements in Group earnings in fiscal 2016. In connection with the sales growth in 2016, profitability is expected to continue increasing in the Defence sector, with a forecast return on sales of between 4.5% and 5.0% based on operating earnings before interest and taxes. Profitability is expected to remain stable at Rheinmetall Automotive in 2016, with the return expected to be about 8%.