RUAG International reports 7% sales growth, positive profit development

In its half-year results released Sept. 6, 2022, RUAG International (Zurich, Switzerland) reported sales up 1% compared to the same period last year, to CHF 581 million, amounting to 7% adjusted for foreign currency and divestment effects.

Sales in the Space, Aerostructures and Small Caliber Ammunition segments generally developed positively compared to the prior-year period. The MRO International segment recorded a significant decline in sales due to the divestment of the Simulation & Training (S&T) business at the end of April.
EBIT increased from CHF 27 million to CHF 100 million compared to the previous year, with a significant portion resulting from the sale of the S&T business. Both the Space segment and the Aerostructures business generated an operating profit in the first half of the year and improved significantly compared to the same period last year.

In the first half of 2022, RUAG says further non-strategically relevant business units were sold and the company drove forward a transformation towards an agile company focused on the space market. The Space segment, with around 1,700 employees, was renamed Beyond Gravity (previously RUAG Space) in mid-March 2022.

According to RUAG, orders from large, commercial space providers such as Amazon are leading Beyond Gravity to the expansion of production sites in Linköping, Sweden and in Decatur, Ala., U.S. Construction is progressing on an additional production facility in Linköping and is said to create jobs for around 60 new employees. An expansion of production is also planned at the Decatur site, which will result in an increase in the workforce of 200 additional jobs.

In mid-March, RUAG International signed a sales agreement with the Italian hunting and sporting weapons manufacturer Beretta for its ammunition business (RUAG Ammotec). Beretta Holding took over all 2,700 employees at all production and sales sites as early as the end of July 2022.

At the end of April, ownership of all shares in RUAG Simulation & Training was transferred to the French company Thales. At the beginning of May, Thales took over all business activities and all 500 employees in four countries.

The sale of RUAG Australia to the Australian defense and manufacturing company ASDAM was also closed at the end of August. ASDAM took over all activities of RUAG Australia, including all 150 employees at all sites in Australia.

By the end of 2023, RUAG International also intends to find suitable partners for the two aerostructures units in Switzerland and Germany/Hungary. For the rebranded Space division Beyond Gravity, a divestment is planned by the end of 2025 at the latest. With the completion of these divestments, the Swiss Confederation will then no longer have any shares in RUAG International Holding.

In addition, as of May 1 2022, André Wall took over as Head of the Space division in addition to his role as CEO of RUAG International. 

Demand for the Space and Aerospace business is still expected to remain stable. However, due to the loss of sales from the divested Ammotec, Simulation & Training and RUAG Australia businesses, RUAG International expects significantly lower sales overall for 2022 as a whole.