FRANKFURT, May 11 (Reuters) – TKMS’s order backlog hit a fresh record, the German warship builder said on Monday, as demand for weapons continues to surge across European to cut military dependence on the United States.
TKMS, which is majority-owned by German engineering conglomerate Thyssenkrupp, has been riding a boom in defence stocks following a stock market listing in October.
“The Russian war of aggression against Ukraine and the military conflicts in the Middle East between Israel, the USA and Iran have led to a permanent increase in global defence spending,” the company said in its quarterly report.
Its order backlog rose to 20.6 billion euros ($24.2 billion) at the end of March, up from 18.7 billion at the end of December, the company said. The submarine and sonar technology divisions helped it to post higher-than-expected first-half sales and profits, it added.
Adjusted operating profit during the six months through March rose 13.2% to 60 million euros, while sales climbed 10.2% to 1.17 billion. Analysts in a company-provided poll had, on average, expected operating profit of 59 million euros and sales of 1.10 billion.
Shares in the company, which have gained nearly one fifth year-to-date, were indicated to open 2.2% in pre-market trade at 0538 GMT.
($1 = 0.8508 euros)
($1 = 0.8508 euros)
(Reporting by Christoph SteitzEditing by Ludwig Burger)