German automotive supplier and defence contractor Rheinmetall has reported record results for its automotive division.

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Sales by the Kolbenschmidt Pierburg Group in 2005 surged to a new all-time high of €2,050m, an increase of 5.6% over a year-earlier (€1,941m).


The group lifted its EBIT 5% €146 million (up from an already strong result of  €139 million in 2004). At 7.1%, the EBIT margin virtually remained at the prior year’s level of 7.2%. ROCE was reported to be 20.2% up slightly over the previous year’s 20.0.


Kolbenschmidt Pierburg benefited in particular from the trend to reduced fuel consumption and emissions and the high proportion of diesel engine cars sold in Europe.


Sales outside of Germany accounted for 68% of the total (up from 66% a year earlier.

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For 2006 and 2007 Rheinmetall expects further growth, averaging around 5%.