Home / Knowledge / News / Textiles / Rieter: order intake affected by market disruption
Rieter: order intake affected by market disruption
Feb '12
Rieter recorded pleasing growth in the 2011 financial year. Sales rose by 22% to 1060.8 million CHF. Orders received were 34% lower than the exceptionally strong outcome in the previous year, but remained at a healthy level (958.3 million CHF).

Rieter thus still has a good backlog of orders in hand. The figures as of December 31, 2011, are the first reported by Rieter for a full financial year in the new structure which came into effect on May 13, 2011, following the separation of the Rieter Group. Since then Rieter has been an industrially focused supplier of machinery and components for staple fiber spinning mills. Rieter will publish final figures and its annual report on March 21, 2012.

The boom in demand on the world market for textile machinery and components experienced in 2010 continued in the first quarter of 2011. The investment climate started to cool off as of the second quarter. The high cost of cotton and declining yarn prices intensified pressure on spinning mills' margins and liquidity.

The second half of the year was also dominated by uncertainty due to the trend in raw material prices and prospects for the global economy. As of the second quarter the market retreated to a lower level compared with the previous year. Demand for yarns also declined in 2011. However, spinning mills were able to reduce yarn inventories to some extent again in the second half of the year.

Orders totaling 958.3 million CHF received by Rieter in 2011 were 34% lower than the very high figure recorded in the previous year (-31% in local currencies).

The decline occurred in particular as of the second quarter and affected both Business Groups. While orders received by Spun Yarn Systems were 36% lower at 775.0 million CHF, at Premium Textile Components they declined by 22% to 183.3 million CHF (-34% and -17% respectively in local currencies). Generally speaking, the components business is less subject to market cycles than the machinery business.

Some customers postponed or canceled orders as a consequence of the disruption on the raw material and yarn markets. Most cancelations affected orders placed in the peak year of 2010. Rieter therefore adjusted its order book by a total of 112.6 million CHF in the second half of 2011. Excluding cancelations, orders received in the second half of the year amounted to 399.6 million CHF. Orders in hand at year-end were slightly over 600 million CHF.

China, Turkey and India were the sources of the largest volume of orders. Other important markets were South Korea, Indonesia, the USA, Brazil, Pakistan and Bangladesh. All in all Rieter further expanded its market position worldwide in the year under review and gained market share with attractive products. In China and India Rieter strengthened its market position with a specific offering for the local markets. This shows that Rieter positioned itself well and made the right investment decisions in earlier years.

Must ReadView All

Textiles | On 20th Oct 2016

Indian polyester market demand grows 14% in Q2 FY17: RIL

The Indian polyester market witnessed a demand growth of 14 per cent...

Fashion | On 20th Oct 2016

Replay to explore new markets in 2017

Replay, the iconic Germany based denim brand, is planning to get into ...

Textiles | On 20th Oct 2016

Pakistan proposes Rs200 bn for textile sector revival

A bailout package of Rs 200 billion has been proposed by the Pakistan ...

Interviews View All

Jurgen Gauger

‘Buying crowdsourced or creative designs are much more appealing to the...

Rahuul Jashnani

‘Online economy has changed the whole dynamics of buying habits.’

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

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...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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

October 2016

October 2016

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


Browse Our Archives


Advanced Search