R&M Back On Track
First six months bring positive returns / Sales stable, EBIT up, growth in the Middle East / New management team nominated for September 1, 2012
Wetzikon, July 24 2012
Specialist cabling company Reichle & De-Massari (R&M) is back in profit having generated a sales revenue of CHF 96 million in the first half of this year. The management have made a positive assessment of the company's progress in 2012. Hans Hess, CEO and Chairman of the Board of Directors confirmed, "We're back on track. Sales have stabilized and our EBIT margin is actually slightly above expectations." R&M attributes this success to targeted sales activities and, in particular, sustained growth in the Middle East. Hess added, "in view of the efficiency program we began in 2011, and the economic conditions which remain challenging to this day, the company's performance throughout the first half of 2012 can be considered solid and encouraging."
In 2011 the strong Swiss franc forced R&M to reduce operating costs at its head office in Wetzikon and to streamline its internal processes. "This action plan is still being implemented and the measures are working," Hess asserts. The fiber-optic assembly team is now up and running, having relocated partially to Bulgaria. A few days ago, R&M significantly expanded its existing assembly center in Dubai, where technicians assemble cabling systems for customers in the Middle East.
Switzerland and the Middle East are once again proving to be key growth markets. Sales and marketing activities are having a lasting impact. The company's growth is currently stable in Germany and northern Europe. However, R&M faces difficult challenges in western Europe and, in southern Europe, sales are suffering as a result of the eurozone crisis. Hans Hess believes that the right thing to do in the current situation is to support the Swiss franc, since this is the only way that domestic industry can hope to safeguard its export opportunities.
In the second half of the year, R&M aims to expand its sales activities and increase its foothold on the international market. Despite the economic uncertainties in Europe, CEO Hans Hess is optimistic that the company will continue to perform well throughout the year.
A number of management changes were announced at the beginning of July. On September 1, 2012, the new CEO Michel Riva will take over management of R&M, bringing with him a wealth of international experience in the industry. The responsibility for managing global sales will be passed to the new CSO Richard Eichhorn, who previously managed R&M's sales region in western Europe. A few months ago, Andreas Rüsseler assumed the new role of Marketing Manager (CMO). HR manager Marilena Della Casa is being promoted to the board of managers as the new CHRO. The new management team under Michel Riva is therefore now complete and ready to start work on September 1, 2012. Together with Hans Hess, co-owners Peter and Martin Reichle will withdraw from operational management to focus on their duties on the board of directors.