Rheinmetall starts sale of civil business

(Sharecast News) - German defense manufacturer Rheinmetall said ‍it ‌has started the sale of its civil business ⁠activities.

The sale, which includes its Power Systems division, is ⁠part of a strategy to focus the group's activities on its ​core military operations as governments ramp up defence spending to counter the growing threat from Russia and China.

Rheinmetall added it will ‌book a non-cash impairment ⁠charge of about €350m due to discontinued operations, although this would have no impact ​on the liquidity or earnings of the group's continuing operations.

The company also updated its forecast for the full year and now expects sales growth ​of 30 - 35%, up from previous guidance of 25 - 30% growth issued last month.

Reporting by Frank Prenesti for Sharecast.com