Almost three-fold increase in Rieter Textile Systems orders
04 Feb '11
5 min read
Rieter Automotive Systems: striking increase in sales Automobile production worldwide developed vigorously throughout 2010. A total of some 73 million light motor vehicles were manufactured, equivalent to an increase of 23% compared with the previous year. Growth was strongest in North America, where output of light motor vehicles increased by 38%. Automobile production in Europe grew by 14% on the back of an improvement in consumer sentiment. The phasing-out of scrappage premiums had no material impact on overall growth. Despite the upswing in 2010, neither of Rieter Automotive Systems' main markets –Europe and North America – regained the output levels achieved in the good years before the financial and economic crisis.
China experienced a boom exceeding even optimistic forecasts, with automobile production increasing by 28%. In 2010 more automobiles were manufactured in China than in North America as a whole. Other Asian markets also developed very strongly. There was a marked increase in the production of commercial vehicles worldwide, albeit also compared with a very low levelin the previous year.
Rieter Automotive Systems successfully exploited the more favorable global environment with its broad customer portfolio and its established and newly launched products. Sales by the division rose by 20% from 1'424.3 million CHF to 1'715.4 million CHF. Encouragingly, Automotive Systems recorded only slightly lower sales in the second half than in the first six months, despite seasonal effects. However, the weakness of the US dollar and the euro versus the Swiss franc had an adverse impact on the trend in sales, especially in the second six months. In local currency terms, Automotive Systems' sales revenues were 25% higher in the 2010 financial year. Based on exchange rates prevailing in 2007, Automotive sales would currently be around 2 billion CHF.
As a leading worldwide supplier of components and systems for acoustic comfort and heat management, Rieter Automotive further expanded its presence and capacity in the growth markets of China and India as well as continuing to implement and virtually completing its restructuring program in the year under review.
Production capacity in Asia will continue to be progressively expanded in 2011. This will enable the division's strong position in its traditional markets also to be extended to new markets with innovative products and systems.
Outlook for 2010 results In the second six months both divisions confirmed the progress in results already achieved in the first half of 2010. Rieter's operating margin at the consolidated level improved substantially in the second half of the year compared with the first half due to the performance of Textile Systems. Rieter has achieved the targeted turnaround and will post a positive net result for the 2010 financial year.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
