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Pleasing trend of business at Rieter
27 Jul '11
5 min read
In this market environment Rieter's intake of new orders remained at a high level due to its market-oriented products, totaling 671.3 million CHF in the first six months of 2011. This corresponds to a slight decrease of 9% compared to the exceptionally high level recorded in the same period of the previous year (738.6 million CHF).
There was strong demand from customers for products of both Rieter's business groups, Spun Yarn Systems and Premium Textile Components. Demand was also broad-based in regional terms. Rieter recorded the largest volume of orders in the Indian, Turkish and Chinese markets. High levels of orders were also secured in other Asian countries such as South Korea, Indonesia and Pakistan. Spinning mills in the USA, Brazil and Egypt also invested in staple fiber machinery and components from Rieter.
The high level of orders already in hand at the beginning of the year continued to grow on the back of healthy order intake in the first six months of 2011. This meant that Rieter's production capacity was utilized to the limit, resulting in long delivery times in some cases.
Sales of 537.8 million CHF were 66% higher than in the same period of the previous year. Corporate output also increased by 66% to 559.1 million CHF. Exchange rates – especially the strength of the Swiss franc – had a negative impact on new orders received by Rieter and on sales revenues to the tune of –4 and –7 percentage points, respectively, in the first half of 2011.
High capacity utilization and attractive products generating good margins resulted in a disproportionate increase in profitability relative to sales. Rieter posted an operating result before interest and taxes (EBIT) of 70.6 million CHF in the first half of 2011 (2.0 million CHF in the first half of 2010). This is equivalent to 12.8% of corporate output.
There was also a striking increase in net profit, which amounted to 91.0 million CHF (7.5 million CHF in the first half of 2010). Both the higher operating result and a net capital gain of 42.3 million CHF realized in the period under review contributed to this positive outcome.
The capital gain arose from the reduction in the equity stake that Rieter holds in Lakshmi Machine Works Ltd. in India. Rieter announced this transaction on April 1, 2011. Excluding capital gains, net profit corresponded to 8.8% of corporate output. The financial result (–4.9 million CHF) consists mainly of interest paid on the bond issue.
As of June 30, 2011, Rieter employed a workforce of 4 725, compared with 4 064 on the same date in the previous year. The increase in personnel numbers was due largely to the expansion of facilities in the growth markets of India and China. Rieter also increased the number of temporary employees in order to satisfy the large volume of orders.
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There was strong demand from customers for products of both Rieter's business groups, Spun Yarn Systems and Premium Textile Components. Demand was also broad-based in regional terms. Rieter recorded the largest volume of orders in the Indian, Turkish and Chinese markets. High levels of orders were also secured in other Asian countries such as South Korea, Indonesia and Pakistan. Spinning mills in the USA, Brazil and Egypt also invested in staple fiber machinery and components from Rieter.
The high level of orders already in hand at the beginning of the year continued to grow on the back of healthy order intake in the first six months of 2011. This meant that Rieter's production capacity was utilized to the limit, resulting in long delivery times in some cases.
Sales of 537.8 million CHF were 66% higher than in the same period of the previous year. Corporate output also increased by 66% to 559.1 million CHF. Exchange rates – especially the strength of the Swiss franc – had a negative impact on new orders received by Rieter and on sales revenues to the tune of –4 and –7 percentage points, respectively, in the first half of 2011.
High capacity utilization and attractive products generating good margins resulted in a disproportionate increase in profitability relative to sales. Rieter posted an operating result before interest and taxes (EBIT) of 70.6 million CHF in the first half of 2011 (2.0 million CHF in the first half of 2010). This is equivalent to 12.8% of corporate output.
There was also a striking increase in net profit, which amounted to 91.0 million CHF (7.5 million CHF in the first half of 2010). Both the higher operating result and a net capital gain of 42.3 million CHF realized in the period under review contributed to this positive outcome.
The capital gain arose from the reduction in the equity stake that Rieter holds in Lakshmi Machine Works Ltd. in India. Rieter announced this transaction on April 1, 2011. Excluding capital gains, net profit corresponded to 8.8% of corporate output. The financial result (–4.9 million CHF) consists mainly of interest paid on the bond issue.
As of June 30, 2011, Rieter employed a workforce of 4 725, compared with 4 064 on the same date in the previous year. The increase in personnel numbers was due largely to the expansion of facilities in the growth markets of India and China. Rieter also increased the number of temporary employees in order to satisfy the large volume of orders.
Click here to read more details:
Rieter Management AG
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