RUAG Holding AG
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RUAG Holding AG: SWOT Analysis &
Company Profile
Reference code: BRDF0097CP10-Q2
Published: Oct 2010
Business Review
John Carpenter House
7 Carmelite Street
London EC4Y 0BS
United Kingdom
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813
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RUAG Holding AG - SWOT Profile Page 1
RUAG Holding AG
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RUAG Holding AG - Company Overview
RUAG Holdings AG (RUAG), a Switzerland based company develops and manufactures systems and components for
aerospace, defense and space applications. The company provides aerospace structural assemblies, and the
maintenance and outfitting of aircraft and helicopters. It also provides weapon, command and control, and simulation
system for defense applications. The company also provides defense and security products and services, homeland
security, artillery systems, armoured vehicles and systems, protection, logistic vehicles and containers along with optics
and optronics, optronic assemblies, and eyewear. The company has wide presence in European countries like
Switzerland, Sweden, Germany, Austria and Hungary and also in the US. The company is headquartered in Bern,
Switzerland.
Financial Performance
The company reported revenue of CHF 1695.5 million during the fiscal year ended 2009. The company's revenue grew at
a CAGR of 9.69% during the period 2007-2009 with a year on year growth of 10.33% over fiscal year 2008. During the
fiscal year 2009 its operating margin was -6.68% as against the operating margin of 3.72% in fiscal year 2008. During the
fiscal year 2009 the company registered a net margin of -6.3% as against the net margin of 3.3% in the fiscal year 2008.
RUAG Holding AG - Key Facts
RUAG Holding AG, Key Facts
Stauffacherstrasse 65, Bern, ,
Ticker Symbol, Stock
Corporate Address: 3000, Switzerland
N/A
Exchange
Telephone + 41 31 376 No. of Employees 7,534
Fax + 41 31 376 Financial Year End N/A
URL www..ruag.com
Industry Aerospace and Defense
Locations Austria, Germany, Hungary, Sweden, Switzerland, United States
Source: Annual Report, Company Website, Primary and Secondary Research
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RUAG Holding AG - SWOT Profile Page 2
RUAG Holding AG
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RUAG Holding AG - Business Description
RUAG Holdings AG (RUAG) engages in designing, engineering, manufacturing and servicing of various systems,
equipment, products and components for commercial and military aircrafts, military and space vehicles. The company
also provides simulations systems, software and technology for aerospace and military applications. It has production
centres in Switzerland, the US, Sweden, Austria, Germany and Hungary. The company employs 7,534 employees.
The company operates through two business segments namely, Aerospace and Defence. These segments are further
divided into business divisions. The Aerospace segment consists of Space, Aviation and Technology divisions; while the
Defence segment comprises Electronics, Ammotec and Land Systems divisions.
The Space division engages in the manufacturing, development and testing of subsystems and equipment for satellites
and launch vehicles. The division is the largest independent supplier of space technology in Europe. It provides various
products such as Launch Structures & Separation Systems, Satellite Structures, Mechanisms & Mechanical Equipment,
Digital Electronics for Satellites & Launchers, Satellite Communication Equipment and Satellite Instruments. The company
with its broad offerings and technological skills it acts a one stop solution for complete subsystem solutions and services.
During the fiscal year 2009, the Space division contributed 13.2% towards total revenues of the company, generating CHF
226 million, an increase of 176% over the previous year.
The Aviation division operates through RUAG Aviation and consists of three business units namely, business aviation,
military aviation and products & solutions. The division operates as a service and maintenance provider for business and
military aircraft. The business aviation unit provides interiors, painting, maintenance, avionics, engineering, CAMO - fleet
management, and special aircraft & programmes. It clientele includes Bombardier, Bell, Cessna, Dornier, Dassault,
Embraer, Kaman, Piaggio, Eurocopter, and Hawker Beechcraft. The military aviation unit provides repair work,
modifications, upgrades, system integrations and technical maintenance for military helicopters, fighter jets, propeller
aircraft, transport aircraft and drones. The Aviation division also provides military products such as OPATS – a laser
based automatic landing system for UAV’s; Integrated Self-Protection System (ISSYS); high precision optical and
electromechanical equipment; cables and harnesses; simulation system for testing of ISSYS and for other aircrafts,
helicopters and drone; and software applications for mission planning, flight data monitoring, debriefing or obstacle data
management. The products & solutions unit provides subsystems like automatic landing system for unmanned aerial
vehicles, manufactures complex cable harnesses and performs avionics upgrades. During the fiscal year 2009, the
Aviation divsision contributed 25.5% towards the total revenues of the company, generating CHF 438 million, a decrease
of 12% over the previous year.
The Technology division, through RUAG Technology, operates as a global supplier and integrator of components for
applications in military and civil aircrafts; and for the mechanical engineering industry. It provides specialized machining,
forming and surface technologies, aircraft structures, engineering, machine assemblies and environmental technology. It
has facilities in Switzerland and Germany. This segment also provides assemblies and components for commercial
aircrafts, military aircrafts and engines. It supplies integrated assemblies to OEMs of commercial aircraft through
engineering, detail part manufacturing, assembly and system integration. It also supplies integrated assemblies for the
military airframe industry. It supplies various aircraft delivering components such as stabilizers, ailerons and leading
edges, for which it is the single source supplier. For engines, it provides complex components and assemblies. The
segment also serves the automotive industry and mechanical engineering, and also caters to coatings and environment.
For the automotive sector it provides sheet metal forming and rotational machining; and manufactures highly precise
components for mechanical and apparatus engineering. During the fiscal year 2009, the segment contributed 14.7%
towards the total revenues of the company, generating CHF 252 million, an increase of 3% over the previous year.
The Electronics division of Defence segment provides development, manufacturing and integration of systems as well as
active control of the lifecycle of complex systems, which includes communication, command and reconnaissance
systems. It provides products and services are offered under command systems; live training; virtual training; training
services; integration services; and maintenance. It provides Gladiator harness and various simulators for live training. It
provides virtual training simulators for drivers; gunners; crew; and forward observers. Under training services, it provides
services before, during and after the training courses. It also provides Integration Competence Center (ICC) for the Swiss
Army. Through its maintenance services, it controls the lifecycle of complex systems. It looks after the operation and
integration of systems. Its services include IT Competence Center (ITCC); Network Competence Center (NCC); Radar
Competence Center (RCC); and POLYCOM Services. Its Homeland Security provides products and services for
government agencies, rescue and security organizations which include RUAG-developed PantherCommand operational
command system and services related to the POLYCOM security radio network. During the fiscal year 2009, the segment
contributed 14.1% towards the total revenues of the company, generating CHF 242 million, a decrease of 8% over the
previous year.
The Ammotec division offers pyrotechnic products for military and civil markets and for industry applications. It engages in
the manufacture and development of small-calibre ammunition for armed forces and government agencies; and for
hunting and sports. The company offers high-precision ammunition across the entire small-calibre spectrum, including
special-purpose ammunition under the SWISS P brand for security forces and armed forces. It also developed actuator
cartridges for fastening
technologies and safety systems. During the fiscal year 2009, the segment contributed 19.6% towards the total revenues
of the company, generating CHF 336 million, an increase of 2% over the previous year.
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