Rheinmetall's orders are increasing: EU boosts military spending.
Rheinmetall AG's sales increased by a third to $2.6 billion for the three months to September. This occurred due to the increase in Europe's military spending, which led to the rising demand for armored vehicles, ammunition, and air defense systems. This information is reported by Ekonomichna Pravda with reference to Bloomberg.
Russian aggression in Ukraine and US doubts about its commitments to NATO have also led to an increase in arms orders. In the third quarter, the company received orders worth €51.9 billion, which represents a growth of 41%.
NATO Secretary General Mark Rutte stated that Rheinmetall is part of two joint ventures in Ukraine - a tank production and repair center and an ammunition plant. The latter is nearing completion.
After Donald Trump's victory in the US presidential election, shares of Rheinmetall and other European defense manufacturers rose. Trump demanded higher defense spending from European countries, otherwise, he threatened to exit the military alliance with Europe.
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