Home / Knowledge / News / Textiles / Textile machinery firm Rieter's profit declines in H1
Textile machinery firm Rieter's profit declines in H1
25
Jul '12

Rieter Group releases result for the first half of 2012. Higher order intake than in the second half of 2011 – lower sales, as expected – profitability reduced by lower volumes and the investment program – investment program 2012/2013 on track.

Order intake amounted to 404.1 million CHF; this was 40% lower than the very strong figure for the first half of 2011. However, in the first half of 2012 Rieter received more orders than in the second half of 2011. Sales of 487.3 million CHF in the reporting period were 9% lower than in the same period of the previous year, as expected.

The operating profit before interest and taxes declined from 70.6 million CHF to 32.0 million CHF due to reduced volumes and higher investment activity. This figure corresponds to 7.2% of corporate output (12.8% in the first half of 2011). Net profit was 21.9 million CHF, equivalent to 5.0% of corporate output (91.0 million CHF or 16.5% in the first half of 2011, when a non-recurring capital gain accounted for 42.3 million CHF of the total).

In the period under review, Rieter completed major steps in the investment program 2012/2013 announced in the spring. The company has achieved the interim targets it aimed for and is on track with this program. The first half of 2012 was characterized by widely diverging trends in the geographical markets of relevance for Rieter.

Global economic uncertainties affected the markets for short-staple fiber machinery and components in China and Turkey; in India, demand remained weak also due to industry-specific reasons. Yarn inventories, which were still very large last summer, continued to decline. The overall margin situation at spinning mills improved, although regional differences persist.

Compared with the extraordinarily strong period in the previous year, orders received by Rieter declined in the first six months of 2012 by 40% to 404.1 million CHF. Both of Rieter’s business groups – Spun Yarn Systems (machinery, spare parts and service business) and Premium Textile Components (components business) – were affected by this downturn.

However, order intake was higher than in the second half of 2011 and was broad-based in geographical terms. Rieter booked the most orders in China, Turkey and other Asian countries including Indonesia and Pakistan. Customers in the Near & Middle East and Africa placed further substantial orders for staple-fiber machinery and technology components.

In contrast, order intake in the important Indian market remained at a very low level. Orders in hand, some of which will be reflected in sales in 2013, totaled more than 515 million CHF at the end of the first six months (over 840 million CHF at the end of the first half of 2011).

Click here to read more details:

Rieter


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Top executives
Textile & apparel bodies

The decision is transformational

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Mike Hoffman
Gildan Activewear SRL

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


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