The German government has ended the F126 frigate project. This affects the defense company Rheinmetall's forecast for the second quarter.
The German government ended the project due to a cost explosion to nearly 18 billion euros and massive delays. Originally ten billion euros had been planned, Defense Minister Boris Pistorius said.
Rheinmetall said on Thursday that the target order volume of 20 billion euros in the second quarter would not be reached. Instead the total volume would reach a low double-digit billion-euro level.
The planned sales growth of over 60 percent in the quarter would likely be met. The company is examining further effects on the annual forecast and will provide an update on August 6. Possible sales effects in the current year could amount to up to 300 million euros.
