German automotive and arms manufacturer Rheinmetall has reported a 3.5% year-on-year increase in consolidated sales in the first half (H1) of 2022.

The company’s consolidated sales were valued at €2.674bn compared to €2.582bn reported in the same period a year ago.

Consolidated operating result increased 8% from €191m in H1 2021 to €206m in the first half of this year. 

This performance was attributed to sales growth in the company’s ‘high-margin Weapon and Ammunition division, better product mix and strict cost management’.

The company’s operating margin in the first six months of 2022 improved to 7.7% from last year’s level of 7.4%.

Meanwhile, earnings per share from continuing operations dropped from €2.50 to €2.28.

Rheinmetall’s Weapon and Ammunition division reported a rise exceeding 20% in sales to €564m.      

According to the company, the increase in sales was driven by munitions and propellant deliveries to an international customer.

The company’s Vehicle Systems unit posted sales of €851m in the first half of 2022, a 2% decrease from the previous year.  

While the Electronic Solutions division saw sales increase by €49m to €411m, the company’s Sensors and Actuators unit reported decline in sales from €697m to €691m. 

The Materials and Trade division saw rise in sales to €374m in the first six months of this year.

Updating its annual forecast from March 2022, Rheinmetall expects its organic sales and operating margin to increase by more than 15% and 11% respectively.

Rheinmetall chief executive officer Armin Papperger said: “Rheinmetall remains on track for growth. After six months, our sales and operating result are higher than in the previous year.

“We are seeing an increasing order intake – also in the civilian business, where we make important contributions for the technological transformation toward climate-friendly mobility and new forms of energy supply, for example by means of hydrogen technology.

“And in light of the current security policy situation, our products will help to strengthen defence capabilities in numerous countries in the months and years to come. With our military systems, we bear responsibility for security and thus for peace and freedom.”