Rieter with very profitable textile machinery business

Rieter with very profitable textile machinery business

We have already presented the preliminary key figures of Swiss Rieter (Spinning Systems) for 2011 and today the company announced more details

The business Group Spun Yarn Systems reported an order intake of CHF 775.0 (CHF 1217.9) million, sales of CHF 861.7 (CH 674.0) million and a total corporate output if CHF 866.3 (CHF 669.4) million as well as an operating result (EBIT) of CHF 81.2 (CHF 42.4) million.

The business group Premium Textile Components has CHF 183.3 (CHF235.2) million order intake, reported sales are CHF 199.1 (CHF 190.6) million and a corporate output of CHF 272.6 (CHF 237.2) million as well as an operating result (EBIT) of CHF 35.1 (CHF 29.6) million.

The corporate orders on log at the end of 2011 amount to around CHF 600 million and those derive mostly from China, Turkey and India but also from South Korea, Indonesia, the USA, Brazil, Pakistan and Bangladesh. Rieter also declares an expansion of its market position worldwide thus also gained market share thanks to attractive products. In China and India there are special offerings for these domestic markets.

The company’s net profit reached CHF 119 million or 11.4 % of corporate output. Rieter invested in 2011 CHF 39.5 million in R&D activities this means 21 % more than 2010 and represents a share of 3.8 % of corporate output.

The Board of Directors and the management feel that Rieter is well placed in the markets and disposes of recognised expertise along the textile value chain and the ability to manufacture high-precision components in volume and innovation secures its strong global competitive position. They further underline that the company is well placed to continue to maintain and extend its technological and innovation lead in the years to come and the global customer base and presence as well as covering all four final spinning technologies and the relevant spinning preparation are adding to this favourable position.

In 2012-13 Rieter will accelerate its expansion in Asia and its product innovation activities underlined with investment activities of around CHF 90 million, and about half of that sum for 2012. Further investments of CHF 50 million over these two years are earmarked for enhancing global processes and half of that sum for 2012. Because of the difficulty to foresee the immediate business development and of external economic factors, Rieter expects for 2012 a decline in the high single-digit percentage range foremost in the first half of the ongoing year. The planned cited investments will have a decreasing effect on the operating margin each of the two years of about one percent and those for enhancing global processes by two percent. All in all the company expects profitability in line with the volume of the business but at the level of 2011.


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