Automotive Suppliers Rheinmetall Automotive Achieves Record Profit
Rheinmetall Automotive generated record earnings in 2018. The three divisions Mechatronics, Hardparts and Aftermarket achieved sales growth compared to the previous year.
Last year, Rheinmetall Automotive generated sales of €2.93 billion (+2.4%). At 262 million euros (+ 5%), the operating result was the highest ever in the company's history. All three divisions of the automotive supplier again achieved sales growth over the previous year. The decline in demand for diesel products for the passenger car market was offset by new product start-ups and growing business in the other product groups (commercial diesel systems, large pistons, gasoline engines).
The Mechatronics Division's sales revenue rose by 2.7% to 1.66 billion euros in 2018. According to the company, the reasons are the increasing demand of automobile manufacturers for solutions to reduce fuel consumption and emissions as well as dynamic growth in the commercial vehicle sector. The Hardparts Division increased its sales revenue by 2.2% to 989 million euros. This was due to the good performance of large-bore pistons and pistons for trucks and offroad vehicles. The Aftermarket Department expanded its worldwide spare parts business by 2.2% to 367 million euros.
The joint venture companies in China and Germany are accounted for using the equity method and are therefore not included in Rheinmetall Automotive's sales. Sales by these companies in the past fiscal year totaled 1.19 billion euros (+ 2.6%).
This article was first published by Automobil Industrie.
Original: Jens Scheiner / Translation: Isabell Page