Rheinmetall Outlook Disappoints Despite Military Spending

Rheinmetall AG predicted that sales this year will reach €14 billion ($16.3 billion) to €14.5 billion, falling short of analyst expectations at a critical time for the German defense contractor as Europe’s military spending surges.

The company reported sales for last year of €9.9 billion, as political commitments start to trickle down to manufacturers. Although the sales advance for this year represents a gain of 40% to 45%, analysts surveyed by Bloomberg had predicted full-year revenue of about €15 billion.