RUAG reports stable earnings despite Swiss franc's strength and critical export situation

International technology group RUAG managed to maintain its profit margin and generate stable earnings in the first half of the year despite difficult global economic conditions. The Group posted an organic decline in sales of 5.4% (CHF 49m) due to revenue being deferred into the second half of the year, when RUAG expects to be able to make up for this decline. The strong Swiss franc depressed the Group’s net sales by an additional 5.8% (CHF 53m), while acquisitions boosted sales by 0.6% (CHF 7m). Overall, RUAG generated net sales of CHF 824m (CHF 921m) in the first half of the year. Earnings before interest and taxes (EBIT) decreased by 5.7% to CHF 47m (CHF 50m). Despite these declines, RUAG managed to hold the operating profit margin (EBIT as a percentage of operating income) steady at 5.6% (5.6%). The percentage of sales generated by RUAG in Europe and North America showed the strongest growth. The technology group increased outlays on research and development by 7.9% to CHF 68m (CHF 63m).