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Restructuring program is taking effect at Rieter
12 Aug '09
5 min read
After the net profit of 40.8 million CHF reported in the first half of 2008, a net loss of 145.5 million CHF was posted in the first half of 2009, due mainly to a massive reduction in sales.
In the first six months of the year, Rieter secured financing for current business and the restructuring program by various means: net working capital was reduced substantially compared with the previous year and capital spending was curtailed by some 70%. The equity base was reinforced by the sale of treasury shares and the issue of shareholders' options totaling more than 100 million CHF. As previously announced, confirmed credit lines for the medium- and longer-term financing of the group have also been available since March.
With an equity ratio of 40.1% on June 30, 2009 (46.0% on June 30, 2008) and net liquidity of 56.6 million CHF (25.8 million CHF on June 30, 2008), Rieter still has a sound financial base.
Rieter Textile Systems
The global textile machinery market was again substantially weaker in the first half of 2009 compared with the previous year and reached its low in the first quarter. Signs of recovery emerged in the second quarter, primarily in China, but it is still impossible to assess whether this improvement will be sustained.
Orders received by Rieter Textile Systems in the first six months declined by 227.7 million CHF or 55% to 189.6 million CHF. Compared to the second half of 2008, order intake improved clearly, primarily as a result of a significant revival in demand in the second quarter of 2009. The main markets were China, India, Turkey and Brazil. Machines in the mid-price segment were in most demand. The wearing and spare parts business began to recover in the second quarter.
The division's sales were therefore considerably lower in the period under review, declining by 415.2 million CHF or 62% to 249.5 million CHF. Staple fiber machinery and nonwovens systems were mainly affected by this steep downturn, while the setback in the components business was less pronounced.
The huge reduction in volume of more than 400 million CHF and the less favorable product mix resulted in a decline in the operating result before interest and taxes (EBIT) to – 58.2 million CHF (+ 55.4 million CHF in 2008).
The restructuring program already launched in summer 2008 continued to be implemented systematically in the first half of 2009. The number of permanent employees has been reduced by about 1 000 or 20% since June 30, 2008, and the number of temporary employees has declined by more than 500. As of June 30, 2009, almost 2 200 Textile Systems' employees were also working short-time, primarily in Switzerland and Germany.
Click here to read more details:
In the first six months of the year, Rieter secured financing for current business and the restructuring program by various means: net working capital was reduced substantially compared with the previous year and capital spending was curtailed by some 70%. The equity base was reinforced by the sale of treasury shares and the issue of shareholders' options totaling more than 100 million CHF. As previously announced, confirmed credit lines for the medium- and longer-term financing of the group have also been available since March.
With an equity ratio of 40.1% on June 30, 2009 (46.0% on June 30, 2008) and net liquidity of 56.6 million CHF (25.8 million CHF on June 30, 2008), Rieter still has a sound financial base.
Rieter Textile Systems
The global textile machinery market was again substantially weaker in the first half of 2009 compared with the previous year and reached its low in the first quarter. Signs of recovery emerged in the second quarter, primarily in China, but it is still impossible to assess whether this improvement will be sustained.
Orders received by Rieter Textile Systems in the first six months declined by 227.7 million CHF or 55% to 189.6 million CHF. Compared to the second half of 2008, order intake improved clearly, primarily as a result of a significant revival in demand in the second quarter of 2009. The main markets were China, India, Turkey and Brazil. Machines in the mid-price segment were in most demand. The wearing and spare parts business began to recover in the second quarter.
The division's sales were therefore considerably lower in the period under review, declining by 415.2 million CHF or 62% to 249.5 million CHF. Staple fiber machinery and nonwovens systems were mainly affected by this steep downturn, while the setback in the components business was less pronounced.
The huge reduction in volume of more than 400 million CHF and the less favorable product mix resulted in a decline in the operating result before interest and taxes (EBIT) to – 58.2 million CHF (+ 55.4 million CHF in 2008).
The restructuring program already launched in summer 2008 continued to be implemented systematically in the first half of 2009. The number of permanent employees has been reduced by about 1 000 or 20% since June 30, 2008, and the number of temporary employees has declined by more than 500. As of June 30, 2009, almost 2 200 Textile Systems' employees were also working short-time, primarily in Switzerland and Germany.
Click here to read more details:
Rieter Management AG
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