German industrial groupRheinmetall reiterated its reduced forecast for 2008operating profit on Wednesday, citing a depressed car industry.



'In response to the fourth-quarter drop in call orders byauto industry customers worldwide, Rheinmetall AG no longerexpects its automotive sector to achieve its original sales andEBIT forecasts for this year,' it said in a statement.



It forecast EBIT of around 80 million euros ($102.7 million)for the automotive segment and EBIT of at least 180 million forits defence segment. Combined, EBIT would reach 250-260 millioneuros this year, down from its prior forecast of 280-290 millionand 270 million in 2007.



The repeated what Rheinmetall had said on Oct. 23.



Rheinmetall said it assumed 2009 would prove to be anothertough year for the auto industry.



'The highly uncertain situation makes it presentlyimpossible for Automotive to submit a reliable forecast for 2009and hence reaffirm its medium-term goals. Defence, in contrast,is expected to continue to show solid and sustainable progress.'



The company said it was sticking to its goal of generating a9 percent operating margin and a return on capital employed of20 percent by 2010.



Nine-month group EBIT rose to 163 million euros from 157million a year earlier, with sales coming in flat at 2.8 billioneuros.