Wetzikon, 31 January 2008
Up 23 percent in 2007 / Now more than 650 employees success through high-quality cabling solutions
Wetzikon, 31 January 2008
Swiss cabling specialist Reichle & De-Massari AG (R&M) maintained its strong growth during financial year 2007. R&M increased its total sales by 23 percent to CHF 241 m (EUR 150 m) and has thus doubled its results in the space of five years. “EBIT was 13% of turnover and its trend exceptionally positive,” remarked CEO Martin Reichle. Switzerland as the domestic market remained a mainstay with a 25% share of sales and growth of 20%; subsidiaries in export markets grew dynamically, steadily gaining market share. R&M intends to maintain its strong growth in the years to come and establish itself internationally as a quality leader in the high-end sector of the network technology market. The independent, family-run business based in Wetzikon (Canton Zurich) now employs more than 650 people, including around 360 at its home base in Switzerland, were R&M has created around 120 new jobs over the past five years.
The Private Networks Division recorded again a big growth in 2007, The Public Networks Division with cabling systems for the telecommunication and residential market also achieved enormous growth, buoyed by the huge demand for broadband networks.
In Germany, one of R&M's main export market, sales rose by 22%. Eastern and south-eastern Europe increased also positively. For the fourth time in succession the greatest increase was recorded in the Middle East (MEA) - where sales doubled in comparison with last year.
The Asia Pacific sales region continued its positive growth. R&M now employs more than 20 people in China. The flying start in India in 2006 was followed by a growth in sales of 75% up to CHF 10 m (EUR 6.2 m) in 2007. After setting up a sales company in Australia, R&M now has a presence on all five continents.
The Key Account Management Division concluded several global framework agreements with international key accounts in 2007. The financial sector in particular uses the service and support facilities provided by R&M.
Long Version
The Swiss cabling specialist Reichle & De-Massari AG (R&M) maintained its strong growth in the financial year 2007. R&M increased its total sales by 23 percent to CHF 241 m (EUR 150 m) and has thus doubled its result in the space of five years. “EBIT was 13% of turnover and its trend exceptionally positive,” remarked CEO Martin Reichle. Switzerland as the domestic market remained a mainstay, with a 25% share of sales and a growth of 20%; subsidiaries in export markets grew dynamically, steadily gaining market share. R&M intends to maintain its strong growth in the years to come and establish itself internationally as a quality leader in the high-end sector of the network technology market. The independent, family-run business based in Wetzikon (Canton Zurich) now employs more than 650 people, including around 360 at its home base in Switzerland, were R&M has created 120 new jobs over the past five years.
R&M supplies telecommunications companies and private providers of communication and data networks with distributor, connection and termination technology for copper and fiber optic cabling. The applications range from wide-area and access networks to data centers and cabling for offices, industrial premises and the home. As a global business and service partner R&M provides comprehensive support to key accounts with the installation, operation and maintenance of data networks. With its own market organizations and sales partners R&M is present in all the regions of Europe as well as in the Middle East, India, the Far East and Australia. R&M works closely on site with certified partners, system integrators and installers.
Success factors and strategy in tune with demand
“R&M's success is founded on our ability to combine high quality products, an international presence, customer proximity, service and delivery reliability,” explained Martin Reichle with reference to the company’s competitive advantages. Whether in the IT sector, industry or telecom, there was a growing demand among network providers all over the world for reliable, high-quality and versatile cabling systems aimed at preventing costly network failures. “R&M has positioned itself in this high-end segment for many years. The remarkable growth we have enjoyed underscores the fact that our strategy is the right one,” said Martin Reichle.
Being better!, the motto for 2007, had been proved right in every respect. “Even in highly competitive markets our solutions meet the needs of discerning customers,” said Martin Reichle. Higher requirements for communication in boom regions and in the wake of greater international links as well as the ongoing growth in the use of IT have led to sustained demand in all areas.
Growth in private and public networks
The Private Networks Division recorded a big growth in 2007, driven by increased demand for high quality, contributing approx. 71% to total sales. In this sector R&M offers systems for company, building, office and industry cabling and for data centers. R&M has boosted sales in the key area of enterprise networks in particular and gained market share. Thanks to the commitment of all the Divisions and its new marketing strategy R&M has consolidated its position as a high-end provider.
The Public Networks Division with cabling systems for the telecommunication and residential market also registered enormous growth, buoyed by the huge demand for broadband networks. In Switzerland in particular R&M recorded greater demand for precision connectors and distributors for fiber optic cabling. Telecom companies and cable providers are continuing to expand their fiber optic networks with their FTTx projects, penetrating deeper into residential developments to provide greater bandwidth and triple-play services. The success of xDSL technology has also entailed a greater demand for powerful copper cabling systems. R&M is one of only a few manufacturers to offer network providers integrated complete solutions for copper and fiber optic cabling.
Demand for networking in private households has soared in the wake of the possibilities now widely on offer with media and internet use. The packages currently available from providers are prompting more and more users to install universal multimedia cabling in their homes. R&M has been particularly successful in offering solutions for new installations, conversions, upgrades and extensions of home networks.
Sales organisations gaining greater market share
“The international presence we have achieved through our market organizations, the commitment of our competent, autonomous teams and the close cooperation with qualified partners on site have been warmly received by our various markets,” reported CEO Martin Reichle. Customer proximity and family-oriented customer relations have always been two of R&M’s traditional strengths.
International markets account for around 75% of R&M’s total sales. All subsidiaries recorded strong growth in 2007 and gained additional market share. In Switzerland R&M maintained its role as market leader.
In Germany, R&M's main export market, sales rose by 22%, well above the country’s overall economic rate of growth. Over the past year sales in eastern and south-eastern Europe increased also positively. In the Balkans R&M recorded a new success. For the fourth time in a row the greatest sales increase was recorded in the Middle East (MEA). Sales in this sector doubled driven by the building boom in the Gulf States and new business in India.
The Asia Pacific sales region continued its positive growth. Results here benefited from the economic boom in the People’s Republic of China and from co-operation with international key accounts which assigned R&M as their service and business partner for their locations in the Far East. R&M now employs more than 20 people in Shanghai, Beijing and Hong Kong.
In the latest market trend projects, India and Spain once again performed well. The flying start in India in 2006 was followed by a growth in sales of 75% up to CHF 10 m (EUR 6.2 m) in 2007. Data center operators in India set themselves the highest quality standards to guarantee failure safety, one of the reasons why they demand first-rate infrastructure solutions, which R&M is happy to provide. Since setting up a sales company in Australia, R&M now has a presence on all five continents.
Performamce packages for international key accounts
The strategy adopted two years ago to offer specific performance packages to international key accounts is bearing fruit. The Key Account Management Division concluded several global framework agreements in 2007 and provides customers with a comprehensive service ranging from the planning and evaluation of data networks to their installation and operation. The financial sector in particular uses the service and support facilities provided by R&M. Besides quality, reliability is the key issue here. R&M’s cabling solutions are always available at short notice at the required locations, thanks to a sophisticated logistics network.
Sustainability and continuity
“For 2008 we have set ourselves the objective of sustainable yet profitable growth,” announced Martin Reichle. He added that R&M has relied consistently on continuity and a healthy, organic and family-oriented corporate culture. It is an approach that applies to the Management, too. Martin Reichle (CEO, Innovation and Marketing) and his brother Peter Reichle (COO, Production and Logistics) represent the second generation and have been in charge of the family-run business for the past eight years. The Board itself is complemented by Hans Peter Legler (COO, Sales) and Martin Gasser (CFO, Finances and Controlling).
R&M intends to capitalize on the experience it has acquired in establishing new markets and in Key Account Management to open up new regions under its own impetus and acquire additional key accounts. Besides the construction of the new manufacturing center in Wetzikon, R&M is also investing in its international supply chain. In-house process optimization will ensure that R&M is able to manage orders even more efficiently. Other innovations are also planned for high-performance data transmission.