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

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Angelina Francesca Cheang

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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


news category

Related Categories:
May 2017

May 2017

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


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search