RUAG in first half of 2009: Broad basis proves its worth

In the first half of 2009, RUAG's net sales increased by 9.6 % to CHF 789.8 m (previous year: CHF 720.8 m). The majority of this growth resulted from RUAG's acquisition of SAAB Space and its subsidiary Austrian Aerospace in 2008. The acquisition of Oerlikon Space AG, which was completed at the end of June 2009, has no impact yet at the half-year point. 53 % of total sales were generated in the Aerospace market segment and 47 % in the Defence market segment. With 48% (50%) and 52% (50%) in civil and military applications respectively, sales remained well balanced. The DDPS remained the biggest single customer, accounting for 36% (34%) of total sales. Almost 90% of RUAG's sales were generated in Switzerland and Europe.

EBIT amounted to CHF 20.1 m. Thanks to RUAG's broad portfolio and contributions from the defence and space businesses, it remained stable overall. The 40% decline in the operating result to CHF 20.1 m (CHF 33.3 m) is attributable primarily to one-time restructuring costs of CHF 10.0 m and acquisition-related one-time expenses of CHF 0.8 m. The negative effects of the economic crisis on civil business, i.e. in aerostructures (structures and components), business jet maintenance and supplying special components to the automotive and semiconductor industries, impacted additionally on the result.

"RUAG assumes that the economic environment will remain tense, which will in turn impact the result in the rest of 2009," said Dr Lukas Braunschweiler, CEO of RUAG Holding AG.

"In line with our innovation strategy, research and development expenses have been continually increased in recent years. In the first half of 2009, they amounted to CHF 67.8 m (CHF 52.6 m) or 29% higher than last year, due to acquisitions and to investments in large strategic future projects."

RUAG currently employs an average of 6926 staff, around 13% more than in the previous year (6141). Trainees account for around 10% of RUAG's workforce in Switzerland.