Home / Knowledge / News / Textiles / Striking growth at Rieter Textile Systems
Striking growth at Rieter Textile Systems
11
Aug '10
As a leading supplier to the textile machinery and automotive markets, Rieter successfully exploited the improved market environment in the first half of 2010 to generate organic growth. Compared with the same period of the previous year, Rieter's order intake increased by 92% to 1'615.3 million CHF (840.0 million CHF in 2009) and sales grew by 34% to 1'201.3 million CHF (899.8 million CHF in 2009).

The Rieter Group and both divisions returned to profit at the operating level. The Rieter Group achieved an operating result before interest and taxes (EBIT) of 14.6 million CHF in the first six months. Rieter will reach the announced turnaround and expects to reaffirm the positive half-year operating result for the 2010 financial year as a whole. Furthermore, Rieter already aspires to a positive net result for the current year.

Rieter's markets revived significantly again in the first half of 2010, thus continuing the trend recorded in the second half of 2009. As a leading supplier to the textile and automotive industries, Rieter exploited this market recovery, which was especially pronounced in the textile machinery sector, to generate growth in all regions.

The ongoing restructuring programs, which will for the most part be completed at the end of 2010, continued to be implemented in the first six months. They have made a significant contribution to the improvement in results. At the same time Rieter pressed on with important projects for the further expansion of capacity in both divisions in Asia and the development of market-specific products manufactured locally.

In the context of restructuring measures and the strategy of focusing on the core business, the sale of the nonwovens activities announced in the fourth quarter of 2009 and the disposal of automotive design and engineering firm Idea Institute were completed on March 9 and June 30, 2010, respectively.

Orders received at the Rieter Group rose by 92% to 1'615.3 million CHF (840.0 million CHF in 2009). This was mainly attributable to striking growth at Textile Systems, where orders increased four-fold, and orders were also 35% higher at Automotive Systems. Adjusted for exchange rate fluctuations the increase for the group as a whole amounted to 94%. There covery in the markets, which gained momentum in the course of the period under review, affected all regions.

Group sales rose by 34% to 1'201.3 million CHF (899.8 million CHF in 2009). Expressed in local currencies, the increase amounted to 35%. This growth was equally attributable to the improved trend of business at both Textile Systems and Automotive Systems.

The Rieter Group and both divisions returned to profit at the operating level. The operating result before interest and taxes (EBIT) amounted to 14.6 million CHF, an increase of 151.1 million CHF compared with the same period of the previous year.

This striking improvement in the operating result is attributable to improved capacity utilization due to a 301.5 million CHF increase in sales and further progress in lowering the break even point through rigorous implementation of the restructuring and cost-cutting programs. This resulted in a consolidated pre-tax result of -2.7 million CHF (-149.8 million CHF in 2009) and a net result of -15.3 million CHF (-145.5 million CHF in 2009) at June 30, 2010.

Must ReadView All

Textiles | On 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

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

Eamonn Tighe
Nature Works LLC

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

Kerem Durdag
Biovation II LLC

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

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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



X