Brightening sky for Swiss Rieter in 2013
The latest financial year of 2013 shows a brightening sky for Swiss Rieter for its Spun Yarn Systems and also improving Premium Textile Components
Order intake improved 50 % or from CHF 839.7 million to 1259.4 million, in local currencies the improvement was 51 %. Spun Yarn Systems received orders in the amount of CHF 1084.3 million (CHF 695.0 million) thus the improvement was 56 % or 57 % in local currencies.
Premium Textile Components orders grew by 21 % or from CHF 144.7 million to CHF 175.1 million.
Total sales recorded amounted to CHF 1035.3 million (CHF 888.5 million), a plus of 17 %, thereof the share of Spun Yarn Systems were CHF 857.8 million (CHF 727.6 million), an increase of 18 % or 19 % in local currencies. Sales of Premium Textile Components improved 10 % to CHF 177.5 million (CHF 160.9 million).
The year was earmarked by the fact that short staple fibre machinery and components gained momentum during 2013, along with the fact that spinning mills’ margins continued to develop favourably giving the owners the right impetus to invest. The first half year showed a strong demand, for instance in China and because of Rieter’s local presence in the market. The second half year showed a certain degree of consolidation worldwide and towards the end also in China (large raw material inventories, financing difficulties), but generally remained at a rather high level. This was particularly true for Turkey. Healthy demand was noted from Pakistan, Uzbekistan, South Korea, Bangladesh, Indonesia and Vietnam. In the U.S.A. spinning mills are renewing capacity because of cost benefits, thus there was a notable brisk take-up of Rieter’s business in the second semester, especially for rotor spinning machines. Order level in India rose in the second half at modest level.
Spinning mills in all major markets are increasingly confident to invest in machinery and components allowing a high degree of automation along with higher productivity and yarn quality but lower energy consumption. Rieter is the sole global supplier of integrated systems for all four spinning processes and capable of optimising the entire spinning operation in line with customers’ specific needs. For Rieter this represents a crucial and lasting competitive advantage.
Rieter is expecting a net profit margin of around 3.5 % of sales. The final annual financial statements, as well as the annual report will be published on March 18, 2014.