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R&M Confident Again About 2011
Published Mar 17, 2011
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Swiss cabling specialist Reichle & De-Massari AG (R&M, www.rdm.com) began fiscal 2011 with renewed confidence and new prospects for growth. In fiscal 2010, R&M saw sales decline by 6.5% to reach CHF 179.6 million according to the figures just released by CEO Martin Reichle and CFO Martin Gasser. EBIT for 2010 amounted to 0.6%. The number of employees remained stable at 600. About 20 positions were shifted from headquarters to the sales regions to improve customer orientation. CEO Martin Reichle: "2010 was a year of extraordinary accomplishments for R&M but also a year of widely diverging market trends internationally." The break-even financial result was unsatisfactory but stemmed from a combination of reduced sales and anticyclical investments in innovations (data center and FTTH solutions) and in resources such as the R&M Cube for achieving future growth. R&M believes the market has bottomed out. New orders are on the rise again for the cabling sector.
In Switzerland and Germany, R&M returned quickly to the growth track over this past fiscal year. In both markets, sales increased by more than 5% for R&M. R&M also maintained its large market shares in Eastern Europe. Late consequences from the economic and financial crisis led to sales declines in this region. Political developments in the Middle East and in Northern Africa are slowing down a number of construction and telecommunication projects whereas growth continues to be dynamic in Eastern Asia. R&M expanded business there by another 8%. Exports accounted for 71% of total business in 2010 (previous year: 75%). Currency fluctuations, rising commodity prices and increased price pressure are cutting into the bottom line.
R&M focused on anticyclical investments in 2010. Opened in September, the new R&M Cube at headquarters in Wetzikon is considered one of the most environmentally friendly industrial buildings in Switzerland. While erecting the new complex, R&M also carried out a successful SAP roll-out. R&M puts special emphasis on research and innovation. It allocates about 5% of sales to development and 9% of its employees work in this area. New solutions for high-performance networks such as the Cat. 6A connection module and the fiber optic distributor were well received on the market in 2010. The international Forum Design in Hanover, Germany, recently honored the Cat. 6A module as a new advance by giving it the iF Product Design Award. CEO Martin Reichle: "The award confirms our position as a technology leader in copper cabling."
Fiber optics are becoming increasingly important for data centers and for broadband service in general. CEO Martin Reichle: "It is the transmission medium of the future because it enables virtually limitless bandwidth. That is why R&M has positioned itself as a supplier of innovative fiber optic cabling solutions." R&M works jointly in many regions with network operators large and small to make its vision of limitless communication a reality for as many people as possible. The object in the FTTH segment is to supply as many households with fiber optics as possible in order to meet the growing need for greater bandwidths and accommodate applications such as super-fast Internet, HDTV, video on demand, etc.
CEO Martin Reichle stressed the company's great power of innovation and unbroken confidence in strong future growth. He also underscored the healthy financial base of the owner-managed company.
For more information go to www.rdm.com.
Posted by
VMD - [Virtual Marketing Department]
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