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High Utilization Of Capacities At R&M
Published Aug 9, 2011
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Swiss cabling specialist R&M AG (www.rdm.com) posted strong sales growth in the first half of 2011.
Measured in local currencies, sales had risen by 16.7 percent by the end of June compared to the same period in 2010. Adjusted for currency effects, sales increased by 8.8 percent, due to the strong Swiss franc.
The total volume is now just under CHF 100 million. Growth was especially robust in the domestic market of Switzerland, where R&M recorded a considerable increase in sales revenues. Expanding business in fiber optic networks and data centers plus demand for high-end building cabling ensure good utilization of capacities for the new production and logistics facility in Wetzikon. CSO Ingo Kübler: "We also have encouraging growth figures right now for our sales organizations in the rest of Europe, in the Middle East and in Asia."
The supply chain hub that opened in Dubai in January is also already making good use of capacities. The supply chain hubs help Sales to adjust development, production and logistics services to fit local needs.
After outsourcing certain tasks to these branches, R&M is better able to respond to individual market and customer needs and to improve margins considerably. R&M will continue pursuing this strategy in Europe, too. Among other activities, R&M opened the branch for the West Europe Region in the Netherlands in June.
The strength of the Swiss franc is a burden on sales growth and profit.
CEO Martin Reichle: "Given the stiff headwinds from the euro and US dollar, we have to go beyond our steps so far and take further action to increase efficiency throughout the R&M Group.
Our main competitors from the US have a 20 percent price advantage compared to the situation 15 months ago and the European manufacturers can produce about 20 percent more cheaply than R&M in Switzerland.
That forces us to consider new strategies besides continuously increasing our level of efficiency. It would be conceivable to shift value-adding activities to countries other than Switzerland or to increase working hours in Switzerland to shape further growth in a profitable manner."
Nonetheless, R&M continues to rate its near-term prospects as positive because the company is operating in a growth market. Martin Reichle: "We can score points with several innovations. There is further growth in two segments in particular: fiber optic systems for Fiber To The Home (FTTH) and data centers.
The general economic trend, however, is unstable for known reasons. R&M is forced to act cautiously as a result."
For more information:
Reichle & De-Massari AG (R&M), Martin Reichle, CEO, Binzstrasse 31, CHE-8620 Wetzikon, Switzerland
Phone: +41 44 9338212.
E-mail: martin.reichle@rdm.com
Website: www.rdm.com
Posted by
VMD - [Virtual Marketing Department]
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