(MENAFN- Swissinfo) In the 2023 financial year, aerospace company Ruag International continued its Group reorganization efforts. Sales experienced a significant decline due to the divestment of business units, resulting in a modest net profit overall.
This content was published on March 20, 2024 - 14:46 3 minutes Keystone-SDA
According to a statement released on Wednesday, Ruag International reported a one third decrease in sales to CHF620 million ($696 million). This sharp decline is attributed to the company's privatization strategy, which involved the sale of the Ruag Ammontec division, leading to a loss of income.
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The statement further noted that if adjusted for sales and foreign currency effects, Ruag International's sales would have increased by CHF62 million. Consequently, civil activities now account for 96% of net sales.
Space with sales growth
The sale of the aerostructures business, which was completed at the beginning of 2024, represents an important milestone on the path to full privatisation. In the 2023 reporting year, divisional sales rose from CHF235 million to CHF240 million. However, supply chain bottlenecks and extraordinary expenses in connection with the sale resulted in a negative EBIT (when expenses exceed revenue) of CHF17 million for the division, compared to a profit of CHF43 million in the previous year.
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In the remaining Space division (Beyond Gravity), sales increased by 8% to CHF383 million. Operating profit at EBIT level was in the black despite high investments in production and digital infrastructure, following a loss of CHF5 million in the previous year. The order backlog remained at a“very high level” at the end of 2023 at CHF729 million, compared to CHF744 million a year earlier, according to the statement.
Overall, the company still reported a net profit of CHF1 million after CHF154 million in the previous year. At that time, the organisation had benefited greatly from the sale of business units.
Privatisation by 2025
Looking ahead, the company is confident. With the commissioning of the new production capacities, the remaining“Beyond Gravity” division will have a powerful basis from 2024 to profitably utilise the expected growth in the industry, according to the press release.
The focus will also remain on the consistent continuation of the transformation of all business units into digitally networked and economically profitable units. As announced, the privatisation of Beyond Gravity is to be completed by the end of 2025 at the latest. After that, the liquidation of Ruag International is planned.
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Adapted from German by DeepL/amva
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