Mainly due to lower sales and also the 2012/2013 investment program announced by Rieter in spring 2012, the operating result (EBIT) declined to 33.6 million CHF or 3.8% of sales (2011: 10.6% at 112.6 million CHF). Net profit was 26.5 million CHF or 3.0% of sales (2011: 11.2% at 119.0 million CHF). For the 2012 financial year the Board of Directors proposes a dividend of 2.50 CHF to be paid out of the reserves from capital contributions.
Despite adverse economic conditions, Rieter strengthened its market position during the year under review and closed with a sound balance sheet. Rieter has reached its half-time goals in the investment program for further growth, and is well on course with the respective projects. In 2013, Rieter will focus all the more on greater profitability.
The business year 2012 was beset by uncertainties in all major economic regions worldwide. Textile machinery and component suppliers were faced with additional industry- and country-specific challenges in their main markets of China and India.
Spinning mills in India were still affected during the first half of the year with the consequences of raw materials price distortions, but during the second half-year, demand started to improve particularly in northern India. In China the spinning mills suffered as a result of government regulated raw material prices. Overall, Rieter’s spinning mill customers recorded a more stable trend of business in the second half of 2012 and operated profitably. The business environment in Rieter’s yarn customer markets remained volatile, however, and the banks upheld their caution with regard to project financing.
It was clearly apparent in 2012 that in this unfavorable environment, Rieter is well positioned with the existing product range and is heading in the right direction with its innovation and expansion strategy focused on Asia. Today the company is considerably better off with market-specific products than during the economic slump of 2008/09.
Rieter strengthened its overall market position in 2012. In the major markets of China and India, machinery and components offering higher productivity and quality, with lower energy consumption and with a higher degree of automation, are in greater demand than ever.
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