As of: March 27, 2024, 4:35 p.m
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A Renk employee assembles a gearbox for a tank.
The Augsburg-based group is recording a record high in orders, also thanks to global armaments.
© Stefan Puchner / dpa
The Bavarian gear manufacturer Renk, whose products can be installed in tanks, among other things, is reporting a record high in orders.
The people of Augsburg benefit greatly from global armament.
Munich - The Augsburg tank transmission manufacturer Renk has benefited from the global armament and has collected more orders than ever before.
Order intake increased by around a third to almost 1.3 billion euros, as the company announced on Wednesday.
“The high demand worldwide for a return to full equipment for the armed forces gives us tailwind and will continue to be a driver of our growth in the future,” said Renk boss Susanne Wiegand.
The former Volkswagen transmission subsidiary now has orders worth 4.6 billion euros on its books.
In 2023, Renk generated sales of 926 million euros, nine percent more than in the previous year.
Operating profit rose slightly to 150 million euros.
Delivery bottlenecks were particularly noticeable in the first half of the year, said CFO Christian Schulz.
Among other things, a supplier from the Ahr Valley failed.
The situation improved in the second half of the year.
“We are also seeing a better trend in the first months of 2024.” CEO Wiegand pointed out that the delivery bottlenecks not only affect Renk, but the entire industry.
“Suppliers’ delivery reliability has become worse, you have to be more committed to getting your parts.”
The company is optimistic about the future: We can scale
The shareholders of the company, which went public just a few weeks ago, will now receive a dividend of 30 cents per share.
Renk large gearboxes are used in tanks, which are experiencing a boom as a result of global armament, but also in ship engines and generators for generating energy.
Renk is sticking to his forecast for the current year and continues to expect sales of 1.0 to 1.1 billion euros and an adjusted profit margin of 16 to 18 percent.
In the medium term, the margin should be ten to 20 percent.
Wiegand said that the company is benefiting from its long-term affiliation with the truck manufacturer MAN and Volkswagen in its growth course and has sufficient factory capacity.
“We can scale if we ramp up the teams and get our hands on material.”
(reuters, lf)