Rieter Orders Up 14 Percent

Rieter Orders Up 14 Percent

Rieter Textile Systems, Switzerland, reports textile machinery orders received during the
first half of 2004 increased to 619.4 million Swiss francs (CHF) — 14 percent over the same period
in 2003. Greatest demand came from Asia, and was particularly strong for staple fiber machinery,
with orders coming chiefly from China, Turkey and Pakistan. Manmade fiber processing machinery
orders were up slightly over the first half of 2003.While orders were up, actual sales for the
first six months were down by 5 percent to 582.4 million CHF. Rieter cited delivery delays related
to scarce energy resources at customer sites in China as contributors to the decline, and expects
to clear the backlog in the second half of 2004. Sales to China represented more than 20 percent of
total first-half sales, and deliveries to Asian companies increased to 70 percent of the total — a
9-percent jump.The company’s operating profit before interest and taxes for the first half of 2004
totaled 58.1 million CHF — down from the yearearlier total of 64.4 million CHF.Operating margins
were 10.2 percent, compared with 10.9 percent for the first half of 2003. Rieter says its staple
fiber processing customers are increasingly interested in purchasing complete spinning
installations instead of individual machines.

Winter 2004

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