A successful first half-year 2008 for R&M
The Swiss cabling specialist Reichle & De-Massari AG (R&M) can look back on a further period of growth in the first-half of 2008.
With sales amounting to US$ 108 million the company has been able to post a 5.1 percent increase. In terms of local currencies, growth amounted to 7.8 percent. With the exception of Switzerland, is growing in the majority of key markets with the strongest increase in sales evident in the regions of Germany, the Middle East, and Central and Eastern Europe. For the second half-year we are expecting the sales figures to show little change.
Reichle & De- Massari AG (R&M) is one of the world’s leading cabling specialists. With its 30 market organizations located on all five continents the company has been undergoing a period of dynamic growth for the past five years.
In the first half of the current year R&M has again been able to publish positive figures. Sales of US$ 108 million represent an increase in turnover of 5.1 % compared with the previous year, in spite of currency fluctuations.
Adjusted for the negative effects of currency fluctuations, growth amounted to 7.8 percent. Developments in the booming Middle East market are particularly encouraging and there is no let-up in the strong growth being observed.
Already in the first half of the year the region displayed an increase in sales of 74 percent. Compared to the previous year, the Swiss domestic market reported a drop in sales of 13 percent. Lower volumes stemming from major projects and the reluctance on the part of banks and the finance sector to invest are the main reasons for the downturn in the Swiss market. The trend in the first half-year largely confirms our successful positioning, even in an economic climate that is dominated by negative headlines.
The company continues to hold high expectations of the Asian market. In July 2008, R&M opened a management and logistics hub in Singapore. With shorter distribution channels and greater customer proximity, customer support and acquisition can be further intensified in the Asian market. Moves are also afoot to tap the North American market with greater vigor and a marketing organization is currently being established. The aim is to enter the US market with high quality products and services and to explore dedicated market segments.
With the long-term way of thinking of a family business and the ongoing strategic investment in the future, the expected slow-down in growth rates for 2008/2009 mean that a temporary drop in earnings compared with the previous year is something we will have to live with.
Facts & Figures
Reichle & De-Massari AG (R&M) develops and manufactures passive wiring solutions for communication networks. With high quality copper and fiber optic cable products, R&M has gained the reputation of a leader in quality. The company dominates the Swiss market and has established market organizations in 30 countries. The company generates roughly 75% of its sales abroad. Turnover in 2007 was CHF 241 million with an EBIT of 13 percent. More than CHF 7 million are invested annually in research and development. R&M is among the 500 largest and fastest-growing companies in Switzerland, continually creating new jobs. Currently it has a payroll in excess of 650. The company is fully owned by the Reichle family and is managed as an independent company business by the second generation.
