FRANKFURT, Feb 26 (Reuters) - German defence, electronics and automotive group Rheinmetall said on Wednesday its core profits had doubled in 2002 as it reaped the benefits of a three-year restructuring and cost-cutting programme.
Rheinmetall, which makes the Leopard battle tank, said earnings before interest and tax (EBIT) jumped to 391 million euros ($420 million)in 2002 from 197 million the previous year, with all of its major business segments adding to the rise.
"The three years of restructuring are over," the company said in a statement. "Sales and earnings were ramped up by all business sectors despite the troubled economy."
Rheinmetall, which controls auto components group Kolbenschmidt Pierburg AG , said sales in the full-year were broadly flat at 4.58 billion euros, supported by a 12 percent rise in sales at its electronics division.
The company, which has been spinning off non-core units in a bid to boost its liquidity and profitability, said it had booked a 246 million euro gain from the sale of its X-ray security systems business Heimann Systems at the start of 2002.
Rheinmetall also said it had halved its net financial debt and laid off 6.5 percent of its staff last year, leaving it with around 26,000 employees.
The company's illiquid stock was 0.08 percent weaker at 13.31 euros by 1115 GMT, outperforming a 0.78 percent fall by the German mid-cap index .