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inciples of social responsibility
applicable to all companies
under the industrial
leadership of Rheinmetall
around the world: The Codes
of Conduct (CoC) agreed with the Düsseldorf-based
group lay down the
compliance with the internationally
agreed human rights for multinational
companies. Further principles advocated
by the supporters of this social
charter include the equality of opportunity,
the elimination of discrimination,
the rejection of forced labor of
any form, especially also with a view
to the existence of widespread child
labor in many countries.
Working conditions are one of the
main focuses of the CoC agreement,
defining principles with respect to
payment/remuneration (keyword:
core labor standards), working times,
(Continued from page 1)
also making good progress in terms of
organic sales performance. Q1/2004 order
intake by the group totaled € 884
million (down from € 1,095 million) but
like-for-like was up by over 10 percent. At
the end of March
2004, Rheinmetall
employed a workforce
of 18,705, the sharp
30-percent shrinkage
being due to the portfolio
pruning program.
The Automotive sector
generated sales of
€ 495 million, repeating
the high year-earlier
level. Allowing for
structural and exchange
rate effects,
Automotive showed
a growth of 2.4 percent.
Most of the
Rheinmetall group’s
Q1/2004 EBIT increase
came from Kolbenschmidt
Pierburg
whose EBIT of € 40
million was € 18 million above the yearearlier’s(€
9 million of this year’s resulting
from the sale of the remaining stake
in Pierburg Instruments GmbH).
Q1/2004 sales by Defence reached
EUR 243 million (down from € 300 million),
the shortfall being attributable to
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industrial and health protection,
qualification and the environment
largely on the basis of national regulations
and agreements. For instance,
the Düsseldorf-based group
has – as in the past – committed itself
to support qualification measures
which will help to promote the
technical and professional skills of its
employees.
Rheinmetall’s
environmental
policies are also
in line with the Codes of Conduct and
the products and services of the
group will continue to be environmentally
compatible in future, too. The
group will cooperate with local institutions
to assure the protection and
improvement of living and environmental
conditions – as set forth in the
CoC – in order to achieve and meet
Rheinmetall’s Q1/2004 earnings boosted significantly
Profit-focused performance
the smaller consolidation group. Adjusted
for these differences, Defence
showed an organic growth of 5.3 percent.
As in previous first quarters,
Q1/2004 reported a negative EBIT for
invoicing reasons related to business
cycles typical of government contrac-
tors. Nonetheless and despite the
earnings shortfall from the splitting-off
of the Naval Systems unit, EBIT did improve
– by € 2 million to a negative
EUR 10 million and dead on target.
At the group’s annual stockholders’
meeting in Berlin, Rheinmetall AG’s
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the relevant international, European
and national environmental standards.
Rheinmetall also acknowledges the
employees’ right to freedom of association
and the role/tasks of its selected
employee representatives.
Mention is e.g. made of the fact that
Rheinmetall AG, its employees and
Principles laid down
Optimistic about business developments in 2004: Rheinmetall's executive board
chairman Klaus Eberhardt at the group's annual stockholders' meeting in Berlin.
the business and trade union employee
representations will cooperate
in an open and constructive manner
to resolve conflicts in the mutual
interest of both parties. The reconciliation
of economic interests of the
group and its employees is sought to
be achieved in a fair and just manner.
CEO Klaus Eberhardt stated: “Rheinmetall
is reaping in 2004 the rewards
of its rebuilding efforts. Our core sectors
of Automotive and Defence are
both profitable, internationally successful
players that command strong
market respect. Kolbenschmidt Pierburg
enjoys vast
competence in dynamic
growth segments
while Rheinmetall
DeTec as
leading European
systems supplier
for the army has
just the right products
to help shape
the initiated transformation
of international
forces.”
On the basis of
the new corporate
structure and economic
recovery
forecasts, Rhein-
Photo: Thomas Klink
metall expects fis-
cal 2004 to show
an organic growth
in the region of 5
percent and report group sales of € 3.5
billion and an EBIT margin improved on
2003. Eberhardt: “We’re off to a flying
start in 2004 and, given the recovery in
the global economy and, above all, our
strong market positions, we are confident
as to what the year will bring.”