RUAG sees growth in first half
In the first half of 2012, RUAG's net sales increased by 1.3% to CHF 842 million compared to the previous year's figure of CHF 832 million. Stripped of exchange rate effects and acquisitions amounting to CHF 20 million, net sales showed a rise of 2.9%.
The main driver of the growth in sales was the international business in Europe generated by RUAG Business Aviation, RUAG Space and RUAG Technology's aerostructures activities. Also impacting positively on sales were the acquisition on 1 March 2012 of Ascom's Defence Division, as a result of which RUAG has enhanced its competencies in the field of network-enabled operations.
The decline in the EBIT of 16.3% to CHF 38 million (CHF 45 m) can be attributed to optimisation measures in RUAG's Technology Division aimed at streamlining the logistics and production activities of its aerostructures business in Emmen, as well as to structural adjustments in Altdorf. In addition, cost-cutting measures in defence budgets have had a negative impact on RUAG Defence.
Civil applications accounted for 53% (49%) of net sales, while the figure for military applications was 47% (51%). Switzerland's Federal Department of Defence, Civil Protection and Sport (VBS) remained the single most important customer, accounting for 34% of sales (36%).
44% (46%) of total sales were generated in Switzerland, 45% (41%) in Europe, 8% (8%) in North America and 2% (3%) in Asia-Pacific. The remaining countries contributed 1% (2%). These included South America, the Middle East and Africa.
The technology group invested CHF 69 million (CHF 76 m) in research and development. This decline can be attributed to the Swiss programmes, which are drawing to a close (Leopard armoured vehicle preventive maintenance programme and delivery of the Kodiak engineering and mine-clearance vehicles).