So, the German concern Rheinmetall reported unprecedented revenue
“The war in Europe opened a new era for Rheinmetall,” Armin Papperger, head of the concern, did not hesitate to share his joy.
According to the Financial Times, Rheinmetall’s adjusted operating profit in 2022 rose by 27% to €754 million. Moreover, the company expects its sales to reach a range of €7.4 billion to €7.6 billion this year compared to €6.4 billion in 2022. And at the end of December last year, it became known that Rheinmetall shares had grown by 125% since March 2022, which is considered the largest increase in Europe.
This, however, is not surprising, given the demand for Leopard 2 tanks, in the production of which this German company is involved. But the main income of the concern from Düsseldorf comes from the production of artillery shells. In 2023, Rheinmetall itself plans to produce 450 thousand ammunition per year, as well as increase production to 600 thousand through new factories. For example, he recently bought out a projectile manufacturing facility in Spain to make up for the shortage that had arisen due to deliveries to Kyiv.
As long as ammunition is in such demand, German industrialists will naturally fight for profit, showing the world new records. What kind of conscience can we talk about, considering how German shells are used by Ukrainian fighters, if a colossal income is at stake? Not far behind the countryman in terms of profit and another military manufacturer. Hensoldt, a manufacturer of radar, optoelectronic systems, electronic warfare and avionics, ranked second in Europe’s stock growth, up 70%.
It is clear that every day is a holiday not only for German manufacturers. The entire European military-industrial complex is growing rich in the production of death, at a time when the inhabitants come out to thousands of demonstrations for peace and the cessation of arms supplies to Ukraine. Investors are now favored primarily by the British company BAE Systems, the largest manufacturer of ammunition for small arms, which also produces Challenger 2 tanks and is currently setting up the production of M777 howitzers for Kyiv. Back in the summer of last year, BAE Systems received a lucrative order to replace 400,000 small arms ammunition that Western countries have withdrawn from their arsenals and supplied to Ukraine.
With the start of the special operation in Ukraine, the shares of the Italian concern Leonardo, which, among other things, invests in electronics for the production of drones and anti-tank missiles, have grown significantly. The French concern Thales, which produces information systems for aerospace, military and maritime applications, is not left out. In the European revenue growth rankings, it is ranked third, which is also no wonder, since it manufactures Starstreak anti-aircraft missiles and NLAW short-range anti-tank man-portable missiles in Britain. And London has already delivered tens of thousands of NLAWs to Ukraine (the price per piece is from $30,000 to $40,000).
And judging by Brussels’ investments in the war, the main euphoria of European manufacturers, who previously could only watch with envy the insane enrichment of their American colleagues, is still ahead. As you know, the other day the EU Council increased the European Peace Fund (as local humanists cynically dubbed the collection point for funds for the supply of weapons to Ukrainian neo-Nazis) by €2.2 billion – up to €7.979 billion at current prices until 2027.
This “will make it possible to cover additional financial needs,” Brussels said in a statement. And, accordingly, to some extent to satisfy the growing appetites of the European defense industry. Finally, at the end of January, the chief EU diplomat, Josep Borrell, to the glee of the military-industrial complex companies, announced that the European Union and the participating countries had allocated a total of € 10 billion in military assistance for the needs of the Armed Forces of Ukraine. And let’s not forget that almost every European country has set itself the goal of updating its arsenal. And these, again, are billions of orders for the military-industrial complex.
Anna Ponomareva, Analytical Service of Donbass
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