RUAG: EBIT rises to CHF 45 million in H1 2011; tightened focus and risk minimization bearing fruit.

Berne. In the first half of 2011, international technology group RUAG boosted its EBIT (earnings before interest and taxes) by 40.2% year-on-year to CHF 45 m. Net sales fell slightly to CHF 832 m owing to currency effects. Adjusted for currency effects, net sales rose by 3.2%. This result is thanks to RUAG consistently implementing its strategy of tightening its focus and minimizing risks in its core Aerospace and Defence businesses. 49% of sales were generated in civil and 51% in military applications. RUAG invested 10% of its sales in research and development. Growth was hampered primarily by the strong Swiss franc.

In the first half of 2011, RUAG’s net sales declined slightly year-on-year to CHF 832 m (previous year: CHF 836 m), corresponding to a fall of 0.5%. The rapid appreciation of the Swiss franc against practically all currencies has served to hamper growth, and is impacting on all divisions. In terms of local currencies, net sales grew by 3.2%.

56% of total sales (56%) were generated in the Aerospace market segment, while the Defence market segment accounted for 42% (43%). The remaining proportion is attributable to the Services segment.
49% (52%) of net sales were generated with civil and 51% (48%) with military applications. The Swiss Federal Department of Defence, Civil Protection and Sport (DDPS) remained the single most important customer, accounting for 36% of total sales (33%).

46% of total sales were generated in Switzerland (41%), 41% in Europe (43%) 8% in North America (10%) and 3% in Asia-Pacific (3%). The remaining countries contributed 2% (3%). These included South America, the Middle East and Africa.

RUAG reported EBITDA (earnings before interest, taxes, depreciation, amortization and goodwill impairment) of CHF 83 m (previous year: CHF 70 m) in the first half of 2011. EBIT (earnings before interest and taxes) amounted to CHF 45 m (CHF 32 m). The EBIT margin stood at 5.1%.

Due to seasonal effects, cash flows from operating activities amounted to CHF -50 m (CHF -88 m).