Global economic crisis hurts Rieter Textile Systems biz
30 Jan '10
5 min read
Due mainly to the very low level of orders received in the second half of 2008 and at the beginning of 2009, sales in the year under review as a whole were again sharply lower. They amounted to 532.0 million CHF, equivalent to a 53% reduction compared with the previous year. As a result of the increase in orders received as of summer 2009, sales in the second half of 2009 were already some 13% higher than in the first six months.
As the leading supplier of integrated systems for short staple spinning mills and technology components, Rieter Textile Systems continued to focus on strengthening its presence on the large Asian markets and on innovations designed to meet the specific needs of these markets. The further development of the product range was systematically focused on new types of yarn, higher productivity of the systems, optimum utilization of raw material and energy efficiency.
Automotive Systems: higher sales in the second half of the year Automobile production worldwide was 13% lower in 2009, declining from 67.4 to 58.6 million vehicles. Output was 32% lower in North America and 20% lower in Europe after already suffering a substantial decline in the previous year. Due largely to government stimulus programs to support economic activity, automobile manufacturers in both of these regions were able to reduce their excess inventories in the first six months and only started to increase output again in the summer. The trend in vehicle output in Asia (excl. Japan) and in South America was significantly better. China's automobile production grew by 46% and India's by 13%. Sales by commercial vehicle manufacturers were more than 50% lower.
Sales by Rieter Automotive Systems were 30% lower (26% lower in local currencies) in the 2009 financial year, and amounted to 1 424.3 million CHF (2 022.1 million CHF in 2008). Sales in the second six months were 12% lower than in the same period of the previous year. However, the division's sales in the second half of 2009 were 19% higher than in the first six months, despite seasonally lower demand in this period.
Automotive Systems succeeded in maintaining its strong position and expanding it in major markets in this difficult business environment. The division achieved this with a product range that ideally met customers' demands for enhanced comfort, lower weight and reduced CO2 emissions through innovative thermoacoustic systems. Automotive Systems was also able to exploit the weakness of some competitors and secure additional orders. The division is well placed to defend and selectively expand its strong market position in future.
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