Home / Knowledge / News / Textiles / Pleasing trend of business at Rieter
Pleasing trend of business at Rieter
Jul '11
Order intake at high level. 66% increase in sales. Increase in operating result (EBIT) to 70.6 million CHF or 12.8% of corporate output. Sound balance sheet ensures basis for further development of the business.

Separation of the Rieter Group successfully completed as of May 13. Reporting in the context of the Spun Yarn Systems and Premium Textile Components segments creates greater transparency and visibility. Expectations for 2011 as a whole: substantial increase in sales compared with the previous year and double-digit operating margins. High level of orders in hand secures capacity utilization until well into the 2012 financial year.

The Rieter Group embarked on a historic change of course in the spring of 2011. Shareholders approved a proposal by the Board of Directors to separate the group and for its two divisions, engaged in the textile machinery and the automotive components supply business respectively, to continue in operation as independent, separately listed companies.

Following the completion of this separation, Rieter has become an industrially focused supplier of machinery and components for short staple fiber spinning mills. It pursues the operating business of the former Rieter Textile Systems Division through two Business Groups, Spun Yarn Systems (machinery) and Premium Textile Components (components). With the publication of figures for the first half of 2011, Rieter is reporting for the first time in the context of this new structure.

Rieter recorded a pleasing trend of business in the first half of 2011, continuing the positive development reported in 2010. New orders received were again at a high level, totaling 671.3 million CHF; this represented a decline of 9% compared to the exceptionally high figure in the same period of the previous year, but is still above the long-term average. Sales increased by 66% to 537.8 million CHF. Expressed in local currencies the increase amounted to 73%.

Rieter posted a disproportionately strong rise in the operating result before interest and taxes, which increased from 2.0 million CHF in the first half of 2010 to 70.6 million CHF. This corresponds to an operating margin of 12.8% of corporate output. Net profit also developed positively, rising from 7.5 million CHF to 91.0 million CHF, boosted by a net capital gain of 42.3 million CHF.

Excluding capital gains, it amounted to 8.8% of corporate output. In the period under review Rieter intensified capital expenditure in the major Asian growth markets and pressed on with the development of products adapted to local needs in emerging markets.

The markets for textile machinery and components continued to develop apace in the first half of 2011, especially in the first quarter. They leveled off slightly in the second quarter; expectations of a further decline in the price of cotton and consequently in yarn increased the pressure on spinning mills' margins and liquidity.

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 23rd Jan 2017

US textile industry eager to work with President Trump

The US textile industry is eager to work with President Donald Trump...

Textiles | On 23rd Jan 2017

LyondellBasel expands Texas plant ethylene capacity

US based producer of petrochemicals and speciality chemicals...

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Nuno Venda

‘There has been an increase in demand for water based inks, rather than...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search