Rieter posts double digit sales growth in 2014
Spinning technology manufacturer, Rieter says it improved its market share and achieved double digit sales growth in 2014 with a particularly strong performance in the second half of the year.
According to preliminary results released by Rieter, sales rose by 11 per cent to CHF 1,153.4 million, while orders received reached the level of sales at CHF 1,146.1 million.
As on December 31, 2014, Rieter had a backlog of orders in hand of around CHF 730 million, which it says, indicates a high level of capacity utilisation.
In the market for short-staple fibre machinery and components, the positive trend of the previous year continued, albeit with the different characteristics of the individual economic regions.
Overall, demand was above the average of previous years, although momentum slowed in some important markets in the second half of the year.
Rieter took full advantage of the trend in flourishing countries and significantly hiked sales compared to 2013, thereby benefiting from significant strategic investments in China and India in previous years.
New orders received by the Rieter Group reached the level of sales in 2014. Compared to the strong previous year, orders received decreased by 9 per cent to CHF 1,146.1 million as against CHF 1,259.4 million in 2013.
A large number of orders came from Asian countries, where spinning mill capacities were built up to supply the Chinese textile markets, from Turkey and the US.
The positive trend in India continued throughout the year under review, while in China, demand was subdued, as in the previous year.
In the favourable market environment of the first half of the year, Rieter recorded significantly higher order intake than in the more challenging second half.
The decline in the second half of the year was mainly attributable to lower orders from Turkey and China, and affected Rieter’s machinery business more than its components business.
Orders received at Spun Yarn Systems division fell in the year under review by 10 per cent to CHF 973.8 million compared to CHF 1,084.3 million in the previous year.
The Premium Textile Components business) almost equaled the previous year’s level, with orders of CHF 172.3 million from CHF 175.1 million last year.
In the second half of the year, sales increased by 21 per cent compared to the first half and Rieter reported the highest increase in the US, followed by Turkey, India and various Asian countries.
In contrast, sales in China and Africa decreased compared to the previous year. Spun Yarn Systems increased sales by 14 per cent to CHF 980.9 million as against CHF 857.8 million in 2013.
Premium Textile Components posted sales to third parties of CHF 172.4 million down from CHF 177.5 million in the previous year.
Segment sales, i.e. including deliveries to Spun Yarn Systems business rose marginally by 1 per cent to CHF 262.1 million.