How is Rieter gone different to what it was before four years of our previous talk with your Group? Recent financial announcements loud Rieter's remarkable performance. How was this success materialized amidst challenging times?
In 2007 the Rieter Group set new records for sales (3.9 billion CHF), EBIT (278.7 million CHF), and net profit 211.5 million CHF). During the last two years 2008/2009 the Rieter Group – a leading supplier to the textile and automotive industries – was confronted with a severe global economic downturn, especially in the Textile Systems division. To cope with the steep cyclical downturn, Rieter implemented a comprehensive restructuring and cost-cutting program in order to adapt the production capacities to the decreasing volumes and to lower the break-even point.
Rieter has not only reacted to the cyclical downturn but also to the structural changes in the textile industry by continually expanding both manufacturing facilities and engineering services in India and China and adapting the European facilities accordingly. Following a strategic review of the product portfolio of the Textile Systems Division resulting in focusing on core activities, Rieter has sold its activities in chemical fibers, pelletizing and nonwovens.
Textile Systems also adapted its organization in order to have a fully integrated global network of sales, service, manufacturing and development capacities in which the units in Europe, China and India play an equal role, contributing what they can do best. In spite of the restructuring and cost-cutting program, Rieter continued to expand capacity in Asia and pressed on with the development and market introduction of new machines. This allowed Rieter to successfully exploit the improved market environment in the first half of 2010 to generate organic growth and to return to profit at the operating level. Orders received by Rieter Textile Systems in the first six months of 2010 increased by 290% to 739 million CHF. The largest volume of orders came from Turkey, followed by India and China.
'Delight customers- Enjoy your work- Fight for the profits’- interesting! Please explain us about this ethos?
The basic values (see also our Values and Principles brochure on www.rieter.com) governing the Rieter Group‘s business activities are summarized as follows:
• Delight your customers • Enjoy your work • Fight for profits
They address our three most important stakeholders: customers, employees, shareholders. Rieter is successful as a company if it satisfies its customers’ expectations, if its employees are enthusiastic in their commitment, and if it generates long-term added value for its shareholders.
On a different level but connected with our Values and Principles are our four brand values: 'ambitious', 'convincing', 'reliable', 'pioneering'
They signify, in which way we want to achieve the overriding goals. The brand values represent the typical Rieter way of thinking and behaving.
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.