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R&M's First Six Months of 2009
Published Jul 26, 2009
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The Swiss cabling specialist Reichle & De-Massari AG (R&M) is using the tough market situation to equip itself for the future. Despite declining sales, the company is adhering to its chosen strategy and preparing for the next upturn by making anti-cyclical investments in innovation, development and infrastructure.
Reichle & De-Massari AG is one of the world’s leading cabling specialists. The company is represented internationally with 30 market organizations. After the rapid growth of recent years, R&M are showing declining figures for the first time. Sales in the first six months of 2009 dropped by 24 percent (minus 22 percent in local currencies) to CHF 92.5 million. The poor sales situation is affecting all regions but there is encouraging development in some countries. The Swiss market recorded a decline in sales of 14 percent as at June 2009, a very good result in comparison with Europe. However, R&M is expecting a further drop on the domestic market in the second half of the year.
Client investment behavior is still cautious on account of the economic situation, especially in the private sector. This contrasts with the public sector, which is currently benefitting from investments in glass fiber cable installation.
Thanks to R&M's healthy assets and its independence from the money markets, the family business can use the current economic situation for internal process optimization and inno-vation. Investment volume in the fiber optics futures market, for example, was increased by 10 percent in comparison with 2008.
However, CEO Martin Reichle stressed how important it is to safeguard jobs and the corresponding employee know-how. "We have decided to retain our current employee levels despite the difficult circumstances, if necessary accepting short-term losses in profit", Reichle added.
One of the anti-cyclical investments is the new company building under construction in Wetzikon. Another is an innovative ERP solution which will significantly increase efficiency and will become fully effective in the new high-bay warehouse. Construction of the new com-pany building is also a statement of loyalty to Switzerland as a business location.
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R&M Egypt
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