August 29, 2013
RUAG grows in civil business and increases profitability
In the first half of 2013, international technology group RUAG increased net sales by 3.4% year-on-year to CHF845m (previous year: CHF817m). Earnings before interest and taxes (EBIT) rose 13% to CHF44m (CHF 39m). Civil business is gaining further in relation to military business: 56% of sales was generated by civil applications. The fastest growth was seen in RUAG’s international sales in North America and the Asia-Pacific region. Both the increase in civil business and international expansion had a positive impact on profitability. Four out of five divisions reported growth in the first half of the year. Only in the Defence division – the strategic technology partner for land forces – did sales decline compared with the year-back period. Growth in civil business and international expansion are responsible for the 13% rise in EBIT and have thus both proved to be profitability drivers. RUAG generated 56% (53%) of net sales with civil and 44% (47%) with military applications. In the civil sector, particular gains were seen in aerostructures, aerospace and business aviation. Sales to the DDPS (Swiss Federal Department of Defence, Civil Protection and Sport), still the most important single customer, again declined slightly from 34% to 33%.