The Augsburg-based tank transmission manufacturer Renk has started the current year with an increase in turnover.

In the first quarter, sales increased to 238 million euros, 22.5 percent more than a year ago, as the company announced on Wednesday. The adjusted operating profit improved by 45.6 percent to 28 million euros. Renk referred to the strong business with defense equipment and its maintenance. The geopolitical situation is tense and has worsened in recent months, said Renk CEO Susanne Wiegand. The demand for military equipment is correspondingly high.

The industry's dependence on large orders made itself felt in terms of incoming orders. At 208 million euros, less than half as many orders were received as a year ago. However, two major orders played an important role at the start of 2023. In addition, the US Army ordered Renk products worth around 100 million US dollars in April. Renk went public in February and is now listed on the SDax.

(Report by Christina Amann, edited by Sabine Wollrab. If you have any questions, please contact our editorial team at Berlin.Newsroom@thomsonreuters.com (for politics and the economy) or Frankfurt.Newsroom@thomsonreuters.com (for companies and markets)