FRANKFURT, Aug 18 (Reuters) - German defence, electronics and automotive group Rheinmetall AG said on Monday its operating profit had jumped 20 percent in the first half and said its earnings this year would be higher than last.
Rheinmetall, which makes the Leopard battle tank as well as mine clearing equipment and drones, said earnings before interest and tax (EBIT) rose to 59 million euros ($66 million) due largely to stronger business at its auto and defence units.
Revenues slipped slightly to 2.12 billion euros, although that was due partly to the sale of businesses including its X-ray security systems unit Heimann Systems last year.
"Assuming that the economy does not deteriorate further, Rheinmetall expects to close 2003 with a result from operations above the comparable year-earlier figure," the company said in a statement.
Rheinmetall saw its operating profit double to 391 million euros in 2002 as it reaped the benefits of a three-year cost-cutting and restructuring programme, under which it spun off non-core units in a bid to boost liquidity.
The Duesseldorf-based group said sales in the first six months at its automotive division, which makes petrol, diesel and fuel cell engine components, rose two percent, while its defence business saw sales rise five percent.
Its order backlog rose 10 percent to 4.42 billion euros in the first half. The group's stock was up 1.2 percent in early Frankfurt trade, outperforming a flat German mid-cap index .