© ruag Business | March 18, 2016
RUAG increases profits despite difficult year
Despite the appreciation of the Swiss franc and export embargoes, RUAG increased its earnings before interest and taxes (EBIT) substantially in 2015, bringing the total to CHF 137 million (previous year: CHF 113 million).
All five divisions operated profitably and contributed to the positive Group result. Owing to the strong Swiss franc, the international technology group's sales decreased slightly to CHF 1,744 million (CHF 1,781 million). In local currencies, sales growth of 2.5 percent was achieved. Civil business accounted for 55 percent of net sales, while the foreign component of sales came to 62 percent. Annual report 2015 details In 2015 RUAG succeeded in largely offsetting the effects of the Swiss franc appreciation and the moratorium on arms exports to the majority of Middle Eastern countries. At CHF 117 million, RUAG generated the highest net profit in its history. Earnings before interest and taxes (EBIT) were increased substantially from CHF 113 million to CHF 137 million even though net sales declined to CHF 1,744 million (CHF 1,781 million). The CHF 37 million decrease in sales was due primarily to foreign exchange factors in the international business. Factoring these out, sales would have increased from the previous year. In local currency terms, sales grew by 2.5 percent. At the Annual Press Conference, Group CEO Urs Breitmeier had the following to say about the strong result: "RUAG has initiated a swift response to the extraordinary events of 2015: we have opened up new markets, optimized our purchasing and scrutinized our costs at every level. Furthermore, we have launched a number of Group-wide programmes to enhance our productivity." RUAG had already initiated a Group-wide optimization programme in 2014; this was accelerated after the appreciation of the Swiss franc in January 2015. Mr. Breitmeier added: "Another important point was that around 1,000 employees working in export-focused areas in Switzerland worked extra hours without pay. After all, RUAG exports goods and services out of Switzerland worth over CHF 400 million. This extra effort is something we appreciate hugely. At the end of 2015 RUAG paid a bonus to all these employees as a token of its appreciation." The proportion of defence-related business rose slightly from 43 to 45 percent of net sales. The Federal Department of Defence, Civil Protection and Sport (DDPS) remains RUAG's largest and most important single customer; its share of sales rose in 2015 from 30 to 32 percent. These year-on-year changes were mainly due to the strength of the Swiss franc. Cash flow from operating activities came to CHF 145 million in 2015 (CHF 135 million). Free cash flow increased to a respectable CHF 64 million (CHF 57 million). Both order intake, at CHF 1,828 million (CHF 1,785 million), and the order backlog, at CHF 1,378 million (CHF 1,370 million), posted gains compared with the previous year, allowing the Group to go into 2016 with a confident outlook. Outlays for research and development rose to a total of CHF 146 million (CHF 140 million). This corresponds to the target figure of around 8 percent of total sales. The Group's total headcount increased slightly to 8,163 as at 31 December 2015 (8,114).
Ingun's going global; expands in Latin America and Eastern Europe Benjamin Sontag (INGUN Prüfmittel GmbH) gave a short update on expansion plans in Latin America and Eastern Europe.
Yageo to acquire KEMET in a $1.8 billion deal Yageo Corporation and KEMET Corporation have entered into a definitive agreement under which Yageo will acquire all of the outstanding shares of KEMET’s common stock for USD 27.20 per share in an all-cash transaction valued at USD 1.8 billion.
EVG and DELO partner to expand materials and process capabilities Supplier of wafer bonding and lithography equipment for the MEMS and semiconductor industry, EV Group (eVG), is partnering with DELO, a manufacturer of industrial high-tech adhesives, in the area of wafer-level optics.
Osram recommends current takeover offer from ams Osram says it has concluded a business combination with Austrian chipmaker ams and is recommending its shareholders to accept the current takeover offer.
Sponsored content by Nordson ASYMTEKStart-to-finish conformal coating with reliability and efficiency Nordson ASYMTEK’s flexible, modular, Panorama™ S-Line delivers conformal coating process control in a space-saving footprint with overlapping line processes that minimize manufacturing floor space. This innovative, patent-pending line layout trims 50% of the line’s length by using the lower compartment in each piece of equipment for functional use. Combined with Nordson ASYMTEK’s global support, this complete conformal coating line delivers quality, product reliability, efficiency, and safety for all your conformal coating applications.
EpiWorld speeds up commercialisation of SiC devices with AIXTRON AIXTRON SE has provided an AIX G5 WW C system to EpiWorld International Co., Ltd for the further development of next generation silicon carbide (SiC) epitaxial wafers mainly used for the manufacturing of power devices for automotive applications.
FlexEnable makes acquisition for flex displays FlexEnable, developer of flexible organic electronics, has purchased Merck's portfolio of high-performance organic thin-film transistor (OTFT) materials.
Sponsored content by SourcengineComponent Aggregators vs E-Commerce Marketplaces What is the difference between electronic component aggregators and a marketplace?
67% of a buyer’s journey is now done digitally. Learn how marketplaces emerged as full-cycle procurement platforms and challenged the traditional component aggregators.
Samsung’s CPU project ends, layoffs in CA and TX Samsung has confirmed in a letter to the Texas Workforce Commission that layoffs as a result of the closure of the CPU project at the Samsung R&D Center (SARC) in Austin, Texas and the San Jose Advanced Computing Lab (ACL) in San Jose, California, will begin December 31.
Marvell completes acquisition of Avera Semi Marvell has completed its acquisition of Avera Semiconductor, the Application Specific Integrated Circuit (ASIC) business of GlobalFoundries.
IAR Systems opens office in Taiwan Swedish IAR Systems, a supplier of software tools and services for embedded development, says the company is expanding in Asia with the opening of an office in Taipei, Taiwan.
ZF and Cree partners up to advance the electric drive ZF Friedrichshafen is teaming up with silicon carbide semiconductor specialist Cree, to create industry-leading, highly efficient electric drivelines.
Sponsored content by EsemdaContract manufacturer Esemda opens new facility in Vilnius and expands EMS The new facility has been built with reserved space for future expansions. As Esemda constantly grows, it is of great importance to be able to rapidly increase production capacity in large volumes.
Broadcom completes acquisition of Symantec Enterprise Security business Semiconductor company Broadcom, says that the company has completed its acquisition of the Enterprise Security business of Symantec Corporation
AVX acquires Chengdu OK New Energy AVX Corporation says it has completed the purchase of Chengdu OK New Energy, Ltd. (COKNE).
Vesper names new SVP of worldwide sales & business development MEMS sensor company Vesper, announces that Lorenzo Ponzanelli has joined the company as senior vice president of worldwide sales and business development, overseeing sales strategy and execution to drive global growth.
Gigaphoton establishes new company in China Gigaphoton, a manufacturer of light sources used in semiconductor lithography, says it has established and started running the business of a new company – Gigaphoton China Inc. in China.
Sponsored content by NCAB Group Benelux B.V.Failure is not an option for a PCB More than 30% of the Gerbers NCAB Group Benelux B.V. reviews, have problems. However, the PCB are integrated in key end-user product with more and more High Tech PCB. We are here to support you on the new technologies growth to maintain a high reliability and quality. Contact us to review it together.
Prepare, adapt & overcome - how ‘to Brexit’ The looming, but yet unknown, effects of Brexit have forced companies to prepare for whatever may come. But how does one really prepare for unknown consequences?
Acal BFi signs pan-European agreement with Champs Technologies Acal BFi says it has added Champs Technologies to its magnetics portfolio. Acal BFi is a Europe-wide specialist technology supplier and design partner with a specialist portfolio of magnetic cores and inductive components products and services.
POET’s sale of DenseLight Semi to close POET Technologies Inc. announced the sale of its subsidiary, DenseLight Semiconductors Pte. Ltd. to DenseLight Semiconductor Technology (Shanghai) Co. Ltd. is scheduled to close on or before Friday, November 8, 2019.
Odyssey Semiconductor picks up wafer fab Ithaca, New York’s Odyssey Semiconductor Technologies, specializing in high-voltage power switching components and systems based on proprietary gallium nitride (GaN) processing technology, has acquired an integrated semiconductor design, fabrication, test, and packaging facility.
RBVC, Ford and BMW invests in flexible electric circuit start-up Robert Bosch Venture Capital GmbH (RBVC), the venture capital company of the Bosch Group, announces that it has completed a series B follow-on investment in CelLink Corporation.
Alex Davern to step down as CEO of National Instruments NI has announced that Alex Davern will step down as Chief Executive Officer of the company, effective January 31, 2020. The NI Board of Directors has appointed current President and COO, Eric Starkloff, as NI President and CEO, effective February 1, 2020.
RoodMicrotec takes leading role in APPLAUSE A consortium of 31 key players for packaging of electronics, optics and photonics, equipment suppliers and testing experts from 11 countries launched a new project, “Advanced packaging for photonics, optics and electronics for low cost manufacturing in Europe,” simply called APPLAUSE.Load more news