BERNE, Switzerland --- In 2007, the RUAG technology group's earnings before interest and taxes (EBIT) rose 8% on the previous year to CHF 76 million. In view of this result, the Board of Directors is proposing that the dividend be doubled. Sales revenues increased by 13%. For the first time civilian sales were higher than sales in the defence technology sector.
In 2007, RUAG, which has manufacturing locations in Switzerland, Germany and Sweden, grew its sales in the civilian, defence and services segments by 13% from CHF 1,247 million to 1,409 million. The civilian business grew particularly strongly and now accounts for 51% of the total (2006: 45%). When RUAG was first founded in 1999, civilian business represented only 7% of the total.
The Federal Department of Defence, Civil Protection and Sports (DDPS)/Swiss Armed Forces remain the largest single customer with 34% of total sales (2006: 39%). The primary sales regions are Switzerland (44%), Europe (43%) and North America (8%).
RUAG had to absorb skyrocketing industrial metal prices and the slump in the US dollar in its aviation activities. Despite this, earnings before interest and taxes (EBIT) rose 8% on the previous year from CHF 71 to 76 million. Net income increased from CHF 70 million to CHF 76 million. All divisions contributed to the positive result. International business was particularly successful.
Research and development expenditure has risen continuously over the last few years, reaching CHF 85 million in 2007 (2006: CHF 76 million).
RUAG's average headcount in the year under review was 6,050 - 6.6% more than in the previous year. At 370, the number of apprentices is very high by Swiss standards.
The technology group has a healthy balance sheet and exhibits an equity ratio of 56% and a return on equity of 10%.
At the annual shareholders' meeting on 7 May 2008, the Board of Directors will be proposing the payment of a dividend of CHF 15 million.
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RUAG: Successful 2007 - Sales and Profit Up
