A Financial Concern at Ruag MRO
The financial situation of Ruag MRO has raised concerns. Due to acute liquidity shortages, the Swiss Defense Department (VBS) had to advance 35 million francs to the company to ensure its ability to pay its bills.
Although Ruag MRO reported a profit of 35 million francs in the 2024 fiscal year, its annual report reveals significant discrepancies. By mid-2024, the company’s liquidity had reached a critical low point. Despite cost-cutting measures and the maximum use of its credit line, the company’s financial stability was not guaranteed. The government was forced to pay non-due invoices to ensure the company’s liquidity.
Ruag MRO considers this advance as a normal practice, stating that it is common for companies to pay invoices in advance. The company’s spokesperson, Kirsten Hammerich, did not provide specific information on the current liquidity situation.
Apart from the current liquidity issues, Ruag MRO needs significant funds for future investments, particularly for the expansion of its Nitrochemie, a gunpowder manufacturer in which the company holds a 45% stake. While the majority partner, Rheinmetall, is willing to invest the entire 300 million francs, Ruag MRO is still short of its 135 million franc share. To avoid a potential loss of stake, the National Council has approved a credit facility for the company.
Another burden for the company is the ongoing corruption scandal involving a former manager, who allegedly caused significant damage through unclear tank deals. The Swiss Federal Financial Administration (EFK) criticized the lack of transparency in the company’s inventory management of tank parts.
Ruag MRO, however, does not see a need for additional provisions, as it does not expect any further financial burdens. Nevertheless, the company does not rule out the possibility of future claims.