16:40 GMT, September 1, 2010 Berne | In the first half of 2010, technology group RUAG returned to profit. Net sales were boosted by 6% year-on-year to CHF 836.1 m. At CHF 32 m, earnings before interest and taxes (EBIT) were 60% higher than last year, while net profit was upped by 57% to CHF 21.1 m. In line with RUAG's strategy of focusing on its core businesses, the RUAG Electronics and RUAG Land Systems divisions are being merged to form the RUAG Defence division on 1 January 2011. Both divisions already operate on the same markets. Urs Breitmeier will be responsible for managing the new division, which will have around 1250 employees.

In the first half of 2010, RUAG’s net sales increased by 6% to CHF 836.1 m (previous year: CHF 789.8 m). This growth is largely attributable to acquisitions in the space business. The company is consistently pursuing its strategy of focusing on its core businesses of Aerospace and Defence with the associated minimization of risks. 53% of total sales (previous year: 49%) were generated in the Aerospace market segment and 39% (43%) in the Defence market segment.

52% (48%) of sales were generated in civil and 48% (52%) in military applications. The Swiss Federal Department of Defence, Civil Protection and Sport (DDPS) remains the largest single customer, accounting for 33% (36%) of total sales. 84% (88%) of sales were generated in Switzerland and Europe, and 10% (6%) in the United States.

Earnings before interest and taxes (EBIT) amounted to CHF 32 m (previous year: CHF 20.1 m). CHF 0.3 m (CHF -14.1 m) of EBIT was attributable to the Aerospace market segment and the lion's share of CHF 21.4 m (CHF 30.2 m) to the Defence market segment. At CHF 975.9 m, new orders are up 11.4% on the previous year. Both EBIT and new orders reflect a recovery in the economic environment. In addition, the consistently implemented restructuring measures in Aerostructures and business aviation are having a positive effect.


New RUAG Defence division from 1 January 2011, headed by Urs Breitmeier

The newly formed RUAG Defence division will enable improved customer reach in Switzerland for the Swiss Army as the key customer and for selected regions abroad. What is more, customers, partners and employees will benefit from a broad portfolio and single-source services. At the heart of the portfolio are combat, command and control and communication systems, as well as protection modules for land forces and the associated training and simulation systems based on the needs of the Swiss Army.

From 1 January 2011, Urs Breitmeier will be responsible for managing the RUAG Defence division. Mr Breitmeier has been CEO of RUAG Land Systems and a member of the Executive Board since 2006. He holds degrees in physics and mechanical engineering and has worked at RUAG for nine years. Mr Breitmeier started as a member of management of RUAG Land Systems and was responsible for marketing, sales and system management. He also has experience in strategy development and in process and project management, has held previous management positions at Lonza AG and Calotron AG and has worked as a consultant at Malik Management Zentrum in St. Gallen. Furthermore, the 47-year old has an MBA and is a lieutenant colonel.

Dr. Lukas Braunschweiler, CEO of RUAG Holding AG, said: "We are delighted that Urs Breitmeier will be CEO of the new RUAG Defence division, especially as he is committed to long-term solutions, is skilled at building bridges and has a broad network of good relationships with customers and partners. Proof of his success is RUAG Land Systems' successful positioning in its home market of Switzerland, and in specific regions abroad."

RUAG Defence has a sales volume of around CHF 450 m and employs around 1250 staff in Switzerland at the Aigle, Berne, Brunnen, Bure, Dübendorf, Mels, Thun and Zurich sites, and at Wedel and Lichtenau in Germany.
RUAG will thus be present on the market with five divisions as of 1 January 2011: Aviation, Space, Technology, Ammotec and Defence.