RUAG posted a free cash flow of CHF 150m in 2012, on net sales of CHF 1,741m (previous year: CHF 1,714m). EBIT, i.e. earnings before interest and taxes, increased by 3.7% to CHF 114m (CHF 110m) despite a difficult market environment characterized by declining state budgets. The EBIT margin held steady at 6.4%. All five of the Group’s divisions were profitable in 2012. RUAG advanced its focus on its core business with a one-time charge of CHF 12m against property, plant and equipment at the Altdorf site, reducing 2012 net profit to CHF 81m (CHF 97m). Despite new acquisitions, RUAG lowered its debt jhburden in 2012 and strengthened its financial position. With an equity ratio of roughly 46%, RUAG has a healthy financial base with room for further growth.