Latest news with #OliverDoerre
Reuters
07-05-2025
- Business
- Reuters
Hensoldt adds 1 billion euros to 2030 revenue outlook amid increased defence spending
May 7 (Reuters) - German defence electronics maker Hensoldt ( opens new tab raised by 1 billion euros to 6 billion euros ($6.80 billion) its revenue forecast for 2030 as a result of increased defence spending in Europe, the company said on Wednesday. The company, which also confirmed its revenue guidance for this year in a range of 2.5 billion to 2.6 billion euros, set its previous 5 billion euro target for 2030 during its capital markets day in December 2024. Hensoldt, which produces radar and high precision optics used in aircraft, ships and tanks, has benefited from an uptake in military investments across Germany and wider Europe amid the ongoing wars in Ukraine and the Middle East and pressures from Washington to increase defence spending, CEO Oliver Doerre said. The defence firm now had the "technologies, solutions and operational capabilities to play a significant role in the upcoming German and EU procurement programmes," Doerre said in a company statement presenting first quarter results. Hensoldt, which was spun off the European aerospace giant Airbus ( opens new tab in 2017, reported order intake in the first quarter rose 5% to 701 million from a year earlier, helped by orders of radars for the Eurofighter jet produced by a European consortium. The company's order backlog therefore increased 18% to 6.93 billion euros, it added. Its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) came in at 30 million euros, slightly below last year's figure of 33 million euros and analysts' 35.5 million euro forecast, according to LSEG data. The decline was due to the commissioning of a new logistics centre for its sensors segment, which led to a temporary decrease in productivity, the defence firm said. Revenue for the quarter jumped 20% to 395 million euros, but slightly missed analysts' expectations of 405 million euros. Hensoldt also confirmed the rest of its outlook for 2025, expecting an adjusted EBITDA margin of around 18% and a book-to-bill ratio of around 1.2. ($1 = 0.8818 euros)
Local Germany
19-03-2025
- Business
- Local Germany
German defence firm warns that Europe still needs US military support
"It will only be possible in the medium term for Germany and the EU to achieve autonomy in armaments without relying on American capabilities," Oliver Doerre, CEO of the defence electronics maker, told journalists on Tuesday. The firm, based in the southern state of Bavaria, provides radars used in Ukraine to defend against Russian airstrikes. European nations have been unsettled by signs of US President Donald Trump's uncertain commitment to the continent's defence and NATO, and were also shocked after he made overtures to Russia on the Ukraine war. Responding to the geopolitical turmoil, German lawmakers Tuesday approved a plan to dramatically ramp up defence spending pushed by leader-in-waiting Friedrich Merz while the EU is seeking to mobilise huge sums for the continent to rearm. But Doerre cautioned that it was "essential to continue our trusted collaboration with the American industry, particularly with Lockheed Martin," in the areas of naval command systems and radar technologies. He called for defence firms, both in Germany and Europe, to focus more on greater cooperation and less on competing with one another, and for Europe to improve when it comes to procurement of military gear. Doerre, who served in the Germany military for over 20 years, said there were still "significant deficits in terms of capabilities" in the Germany army, despite a 100-billion-euro special fund set up to boost the armed forces after Russia invaded Ukraine in 2022. Advertisement Germany needs an estimated 300 billion to 500 billion euros for investments in equipment, infrastructure and extra personnel, he said. READ ALSO: German MPs give green light to 'bazooka' spending package Doerre said that Hensoldt was "ready" to boost its operations in response to growing demand, noting the company had invested one billion euros in recent years to ramp up production, and had hired 1,000 people alone last year.
Arab News
19-03-2025
- Business
- Arab News
German defense firm Hensoldt warns Europe still needs US
FRANKFURT: German defense firm Hensoldt has warned it will take time before European militaries can operate without American support as the continent races to rearm amid worries about US commitment to its security. 'It will only be possible in the medium term for Germany and the EU to achieve autonomy in armaments without relying on American capabilities,' Oliver Doerre, CEO of the defense electronics maker, told journalists on Tuesday. The firm, based in the southern state of Bavaria, provides radars used in Ukraine to defend against Russian airstrikes. European nations have been unsettled by signs of US President Donald Trump's uncertain commitment to the continent's defense and NATO, and were also shocked after he made overtures to Russia on the Ukraine war. Responding to the geopolitical turmoil, German lawmakers Tuesday approved a plan to dramatically ramp up defense spending pushed by leader-in-waiting Friedrich Merz while the EU is seeking to mobilize huge sums for the continent to rearm. But Doerre cautioned that it was 'essential to continue our trusted collaboration with the American industry, particularly with Lockheed Martin,' in the areas of naval command systems and radar technologies. He called for defense firms, both in Germany and Europe, to focus more on greater cooperation and less on competing with one another, and for Europe to improve when it comes to procurement of military gear. Doerre, who served in the Germany military for over 20 years, said there were still 'significant deficits in terms of capabilities' in the Germany army, despite a 100-billion-euro special fund set up to boost the armed forces after Russia invaded Ukraine in 2022. Germany needs an estimated 300 billion to 500 billion euros for investments in equipment, infrastructure and extra personnel, he said. Doerre said that Hensoldt was 'ready' to boost its operations in response to growing demand, noting the company had invested one billion euros in recent years to ramp up production, and had hired 1,000 people alone last year.
Yahoo
05-03-2025
- Automotive
- Yahoo
Analysis-Tanks not cars: how a pivot to defence could help Germany's economy
By Christoph Steitz FRANKFURT (Reuters) - German defence companies seeking more capacity as Europe prepares to raise military spending are eyeing the ailing car industry, the first sign of a shift that could help revive the continent's biggest economy after two years of contraction. Manufacturers of tanks, radar and weapons are aiming to ramp up production as Europe responds to U.S. pressure to take care of its own defences. Carmakers, for decades Germany's economic powerhouse, are meanwhile cutting jobs and shutting plants amid slowing demand and a creaking electric vehicle transition. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. Rheinmetall, Europe's top ammunition maker, said last week it would repurpose two plants currently turning out automotive parts to mostly make defence equipment. Hensoldt, which makes the TRML-4D radar systems being used by Ukraine in its war with Russia, is in talks to take on around 200 workers from major auto parts suppliers Bosch and Continental. "We are benefiting from the difficulties in the automotive industry," Hensoldt's chief executive Oliver Doerre told Reuters, adding that further investment could more than double annual production of the TRML-4D to between 25 and 30. On Sunday, European leaders agreed they must spend more on their militaries at an emergency summit in London convened after a public clash between Presidents Donald Trump and Volodymyr Zelenskiy cast doubt over future U.S. support for Ukraine. EU leaders are scheduled to meet on Thursday to discuss proposals to mobilise up to 800 billion euros ($843 billion) for rearmament, including 150 billion euros of joint borrowing. Separately, the parties in talks to form Germany's new government late on Tuesday announced proposals to set up a 500 billion euro fund for infrastructure and overhaul borrowing rules in order to massively up defence spending. As a result, European defence stocks have rallied sharply this week. The Bruegel think-tank estimates Europe may need 300,000 additional troops and a short-term annual increase in defence spending of at least 250 billion euros "to deter Russian aggression". GDP BOOST A pivot towards defence production could give a boost to the Germany economy, which has become a laggard among European peers as businesses grapple with high energy costs, red tape and aggressive competition from abroad. The IfW Kiel Institute for the World Economy reckons the European Union's gross domestic product could grow by 0.9-1.5% a year if EU countries raise military spending to 3.5% of GDP from the current 2% NATO target and rely on local technology. "In the medium to long term, American economic history in particular has shown that such military spending can deliver a great deal in terms of productivity gains, spillover and technological advances," IfW Kiel's Johannes Binder said. For Germany, with its existing industrial infrastructure, GDP growth would likely be at the upper end of that range, he added. Raising defence spending to 3% of GDP would more than double Germany's annual investments to 25.5 billion euros, create 245,000 direct and indirect jobs and trigger nearly 42 billion in production and service activity each year, EY estimates. The most recent figures available show Germany's security and defence industry employed 387,000 people in 2022, around half as many as the country's auto sector that year. Defence industry sales totalled 47 billion euros in 2022, compared with 506 billion for the car sector. "We must consider the defence industry as an economic motor for Germany," said Hensoldt's Doerre. "The sector will play a more significant role than in the past." Hensoldt has already started to outsource production of circuit boards and Doerre said that could eventually be expanded to wire harnesses and casings. Using spare capacity in the car sector would help preserve Germany's established manufacturing infrastructure as well as boosting the output of military equipment, he noted. SYNERGIES Car industry supplier ZF Friedrichshafen, itself in a restructuring process that may result in German plant closures, has been in touch with defence companies about shifting workers, it said, citing "industrial synergies". Tank gearbox manufacturer Renk, majority-owned by Volkswagen until 2020, said the automotive sector had become more of a focus recently, especially with regard to the scaling of production capacities. It did not give further details. German-French military defence system supplier KNDS, which plans to make the Leopard 2 battle tank and the Puma infantry fighting vehicle at a German tram plant it recently agreed to buy from France's Alstom, did not respond to queries. Analysts at Deutsche Bank warned in a note last month, however, that increased EU defence spending might not bring significant benefits to the local industry, which is more fragmented than its U.S. counterpart. Former European Central Bank chief Mario Draghi, in a recent report on Europe's competitiveness, said between mid-2022 and mid-2023 nearly four-fifths of the EU's defence procurement spending went to non-EU suppliers. Rheinmetall is also talking to Continental about taking on around 100 employees to beef up operations. Its CEO Armin Papperger told Reuters in February that huge investments in missiles, ammunition and vehicles were needed to make Europe more resilient, adding the continent was way behind target in terms of spending. "(Russian President Vladimir) Putin knows this too, of course, and that's why we have to act," he said. ($1 = 0.9489 euros) (Additional reporting by Alexander Huebner, Matthias Inverardi and Sabine Siebold; Editing by Catherine Evans)
Reuters
05-03-2025
- Automotive
- Reuters
Tanks not cars: how a pivot to defence could help Germany's economy
FRANKFURT, March 5 (Reuters) - German defence companies seeking more capacity as Europe prepares to raise military spending are eyeing the ailing car industry, the first sign of a shift that could help revive the continent's biggest economy after two years of contraction. Manufacturers of tanks, radar and weapons are aiming to ramp up production as Europe responds to U.S. pressure to take care of its own defences. Carmakers, for decades Germany's economic powerhouse, are meanwhile cutting jobs and shutting plants amid slowing demand and a creaking electric vehicle transition. Rheinmetall ( opens new tab, Europe's top ammunition maker, said last week it would repurpose two plants currently turning out automotive parts to mostly make defence equipment. Hensoldt ( opens new tab, which makes the TRML-4D radar systems being used by Ukraine in its war with Russia, is in talks to take on around 200 workers from major auto parts suppliers Bosch ( and Continental ( opens new tab. "We are benefiting from the difficulties in the automotive industry," Hensoldt's chief executive Oliver Doerre told Reuters, adding that further investment could more than double annual production of the TRML-4D to between 25 and 30. On Sunday, European leaders agreed they must spend more on their militaries at an emergency summit in London convened after a public clash between Presidents Donald Trump and Volodymyr Zelenskiy cast doubt over future U.S. support for Ukraine. EU leaders are scheduled to meet on Thursday to discuss proposals to mobilise up to 800 billion euros ($843 billion) for rearmament, including 150 billion euros of joint borrowing. Separately, the parties in talks to form Germany's new government late on Tuesday announced proposals to set up a 500 billion euro fund for infrastructure and overhaul borrowing rules in order to massively up defence spending. As a result, European defence stocks have rallied sharply this week. The Bruegel think-tank estimates, opens new tab Europe may need 300,000 additional troops and a short-term annual increase in defence spending of at least 250 billion euros "to deter Russian aggression". GDP BOOST A pivot towards defence production could give a boost to the Germany economy, which has become a laggard among European peers as businesses grapple with high energy costs, red tape and aggressive competition from abroad. The IfW Kiel Institute for the World Economy reckons the European Union's gross domestic product could grow by 0.9-1.5% a year if EU countries raise military spending to 3.5% of GDP from the current 2% NATO target and rely on local technology. "In the medium to long term, American economic history in particular has shown that such military spending can deliver a great deal in terms of productivity gains, spillover and technological advances," IfW Kiel's Johannes Binder said. For Germany, with its existing industrial infrastructure, GDP growth would likely be at the upper end of that range, he added. Raising defence spending to 3% of GDP would more than double Germany's annual investments to 25.5 billion euros, create 245,000 direct and indirect jobs and trigger nearly 42 billion in production and service activity each year, EY estimates. The most recent figures available show Germany's security and defence industry employed 387,000 people in 2022, around half as many as the country's auto sector that year. Defence industry sales totalled 47 billion euros in 2022, compared with 506 billion for the car sector. "We must consider the defence industry as an economic motor for Germany," said Hensoldt's Doerre. "The sector will play a more significant role than in the past." Hensoldt has already started to outsource production of circuit boards and Doerre said that could eventually be expanded to wire harnesses and casings. Using spare capacity in the car sector would help preserve Germany's established manufacturing infrastructure as well as boosting the output of military equipment, he noted. SYNERGIES Car industry supplier ZF Friedrichshafen ( itself in a restructuring process that may result in German plant closures, has been in touch with defence companies about shifting workers, it said, citing "industrial synergies". Tank gearbox manufacturer Renk ( opens new tab, majority-owned by Volkswagen (VOWG_p.DE), opens new tab until 2020, said the automotive sector had become more of a focus recently, especially with regard to the scaling of production capacities. It did not give further details. German-French military defence system supplier KNDS, which plans to make the Leopard 2 battle tank and the Puma infantry fighting vehicle at a German tram plant it recently agreed to buy from France's Alstom ( opens new tab, did not respond to queries. Analysts at Deutsche Bank warned in a note last month, however, that increased EU defence spending might not bring significant benefits to the local industry, which is more fragmented than its U.S. counterpart. Former European Central Bank chief Mario Draghi, in a recent report on Europe's competitiveness, said between mid-2022 and mid-2023 nearly four-fifths of the EU's defence procurement spending went to non-EU suppliers. Rheinmetall is also talking to Continental about taking on around 100 employees to beef up operations. Its CEO Armin Papperger told Reuters in February that huge investments in missiles, ammunition and vehicles were needed to make Europe more resilient, adding the continent was way behind target in terms of spending. "(Russian President Vladimir) Putin knows this too, of course, and that's why we have to act," he said. ($1 = 0.9489 euros)
