BERLIN (AP) — German defense and auto parts company Rheinmetall has cut its earnings forecast after the government revoked permission for it to deliver a field exercise simulator to the Russian military.

The company says it’s exploring legal options to minimize the financial hit from that decision.

Germany’s government said Monday it was blocking the deal, worth over 100 million euros ($134 million). The decision went beyond a newly imposed European Union arms embargo that allows existing contracts to be fulfilled.

Rheinmetall on Thursday cut its full-year forecast for earnings before interest and taxes to between 200-220 million euros from the previous 230-250 million-euro range.

The company said it is working to ensure that the financial burden is kept as low as possible, “including the utilization of all available legal options.”

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