RUAG first-half figures well ahead of previous year

Moreover, earnings before interest and taxes (EBIT) rose to CHF 66 million, a 40.7% increase over the prior-year period. Of total first-half sales, 59% relate to civil orders while orders from outside Switzerland account for 64% of sales. In the first half of 2016, order intake at RUAG topped the billion-franc mark (CHF 1'006 million), a rise of 5.2%. RUAG is thus following on from its good result for the last financial year. For 2016 as a whole, RUAG expects net sales and operating earnings to exceed the previous year’s result by a medium single-digit percentage. At CHF 896 million, net sales of the RUAG Group were 8.7% higher than in the first half of 2015 (CHF 824 million). The CHF 72 million rise comprises organic sales growth of CHF 59 million (+7.2%) and a positive foreign currency effect of CHF 12 million. RUAG generated 59% (55%) of net sales from civil and 41% (45%) from military applications. This change was due mainly to delayed deliveries in the business aviation and space segments in the previous year which had been deferred from the first to the second half of 2015. The proportion of sales accounted for by the Swiss Federal Department of Defence, Civil Protection and Sport (DDPS), still the most important single customer, was slightly higher than in the first half of 2015, rising from 29% to 31%. Earnings before interest and taxes (EBIT) rose by 40.7% year on year to CHF 66 million (CHF 47 million). Relative to net sales, the operating profit margin thus rose to 7.4% (5.7%). This significant increase is due on the one hand to the higher sales and the positive currency effect of CHF 1 million and, on the other hand, to the cost optimization and efficiency enhancement programmes launched last year. Overall, RUAG generated 64% (64%) of its sales abroad and 36% (36%) in Switzerland. RUAG recorded the largest share outside Switzerland in Europe (up from 45% to 46%) and North America (unchanged at 13%). The global headcount at RUAG rose by 5.5% to 8,504 (8,062) employees. Headcount was up both in Switzerland (+ 134) and abroad (+ 308), and the growth can be linked to the increased output. ----- CHF 1 = EUR 0.917 Oanda 26-08-2016