TAUFKIRCHEN (dpa-AFX) - The Russian war of aggression against Ukraine continues to drive business for defense electronics manufacturer Hensoldt. In the first quarter, Ukraine ordered radars for its Iris-T air defense systems from Hensoldt. In addition, orders were received to equip the Puma infantry fighting vehicles and the Leopard-2 main battle tanks, which Western countries intend to use to support Ukraine in the defense campaign. For the current year, CEO Thomas Müller continues to expect more new orders than sales, as the company announced in Taufkirchen on Tuesday. In the first quarter, however, unfavorable exchange rates and interest rate transactions dragged the Group deeper into the red.

On the stock exchange, Hensoldt's share price fell after the publication of the quarterly figures in the morning. After the start of trading, Hensoldt shares lost around three and a half percent at times. Later in the morning, it was still one of the biggest losers in the MDax, which it had joined in March, with a discount of around one and a half percent to 31.10 euros.

Analyst David Perry of the U.S. bank JPMorgan attested Hensoldt surprisingly good business figures at the start of the year. However, the share is still relatively highly valued compared with its European peers. Since the Russian invasion of Ukraine, the stock had at times more than tripled in value, reaching a record high of 37.54 euros just a few weeks ago. Since then, it had already gone down again a good bit.

At the same time, the signs at Hensoldt are all pointing to business growth. In the first quarter, the company received 347 million euros in orders, only about half as many as a year earlier. However, a service contract for the Eurofighter fighter jet and orders for the equipment of the multi-purpose frigate 126 had driven up order intake.

For 2023, Hensoldt CEO Müller expects the first orders from the special pot for the German armed forces, which was set up by parliament following the heightened security situation as a result of the war in Ukraine. Also as a result, Hensoldt's order intake is expected to exceed sales by 10 to 20 percent this year, according to the board's expectations. In the first three months, the company did not quite manage this - which was also due to strong sales growth.

Compared to the same period of the previous year, for example, revenue grew by around 18 percent to 338 million euros. Operating earnings before interest, taxes, depreciation and amortization, adjusted for special items, jumped by more than 80 percent to 30 million euros. However, unfavorable exchange rates and interest rate hedging transactions had a negative impact on the bottom line. As a result, the net loss grew by more than a fifth to 20 million euros.

For the full year, Hensoldt's sales are still expected to exceed the previous year's figure of 1.7 billion euros by 7 to 10 percent. Adjusted operating profit (Ebitda) is also expected to increase moderately, having reached 292 million euros last year./stw/mne/stk