German defense giant Rheinmetall's sales soar, but it does not raise profit expectations.

Jin10 data, August 7th - German defense company Rheinmetall has not raised its full-year forecast, citing latency in order reception due to the change of government in Germany, despite sales and profits both rising in the second quarter. Rheinmetall announced on Thursday that its sales for the three months ending in June were €2.43 billion (approximately $2.83 billion), an increase of 8.8% compared to the second quarter of last year, but below Visible Alpha's expectation of €2.52 billion. Net profit in the second quarter more than doubled to €159 million, while the operating profit, which is of greater interest to analysts and investors, increased from €270 million to €276 million. The operating profit margin was 11.3%, down from 12.1% in the same period last year. The company stated that the order volume for the second quarter was €2.43 billion, below market expectations, with a total order volume of €14 billion in the first half of this year. CEO Papageorgiou indicated that this was due to the change of government in Germany and the delay in passing the federal budget, which affected the number of orders. Contracts in Germany will not be awarded until later in the second half of the year. Nevertheless, as of June 30, the company's backlog reached a historic high of €63.16 billion.