German warship manufacturer TKMS on Wednesday raised its sales outlook for the second time in six months, expecting higher demand for surface vessels such as frigates as well as for its sensors and mine-sweeping technology.
TKMS has been one of the main beneficiaries of Europe's push to build up its defences in light of dwindling US support, scoring several landmark deals in recent months, including one for Germany's navy as well as a submarine agreement with Canada.
"Our recent successes confirm our outstanding positioning as a maritime powerhouse – both nationally and internationally," CEO Oliver Burkhard said. "They are a strong sign of confidence in our ability to perform and deliver."
The company, majority-owned by Thyssenkrupp, now expects sales to grow by between 10 per cent and 12 per cent in its financial year ending September 30, up from two to five per cent previously and also beating the average four per cent estimate in a poll of analysts it provided.
TKMS shares rose as much as 11.8 per cent, hitting their highest level in more than five weeks.
Its operating profit margin is now seen at up to 6.5 per cent for the year, higher than the 6.4 per cent poll estimate and comparing with a previous forecast of more than six per cent.
Nine-month operating profit rose 13 per cent to €110 million ($127 million), beating the €101 million poll forecast. Its order book slightly shrank to €20.1 billion at the end of June, down from €20.6 billion at the end of the previous quarter.
(Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by Kirsti Knolle and David Holmes)
