Switzerland-based Rieter Holding Ltd. has reported a 92-percent increase in orders and 34-percent
increase in sales for the Rieter Group in the first half of 2010, with both its automotive and its
textile divisions returning to profitability at the operating level.
According to the company, the investment climate in the textile industry improved
substantially in the first half of the year, with markets recovering as a result of growing demand
for yarn as well as rising yarn prices, while raw material prices increased at a lower rate; and a
backlog of demand for investments in plant replacements and upgrades.
Rieter Textile System’s orders received in the first half of 2010 totaled 738.6 million Swiss
francs and were 290-percent higher than 2009 orders, which amounted to 189.6 million Swiss francs.
The company’s staple fiber machinery and technology components accounted for most of the order
increase. Most orders came from Turkey, India and China; although customers in Indonesia, South
Korea, Bangladesh and Pakistan also placed significant orders. U.S. and Brazilian customers also
placed orders. While most second-half 2009 investment was directed at plant replacements,
first-half 2010 new installation investments increased significantly.
The increase in orders led to improved capacity utilization and lengthened delivery lead
times, and Rieter discontinued all short-time working at all Textile Systems sites by the end of
June. Sales increased by 30 percent to 324.6 million Swiss francs, compared with first-half 2009
sales of 249.5 million Swiss francs. In Asia, sales rose 65 percent compared to the year-earlier
period. Textile Systems recorded a “marginally positive” operating result of 2 million Swiss
francs, mainly because the company implemented restructuring and cost-cutting programs in the first
half of the year.
In an effort to focus on the textile division’s core business, Rieter sold its nonwovens
activities in France — Rieter Perfojet S.A.S. — to Austria-based Andritz Küsters
(See ”
The
Rupp Report: New Owner For Rieter Perfojet,” Dec. 15, 2009), and the sale closed in the
first quarter of 2010. The division continued to expand capacity in India and plans a progressive
expansion of the range of products manufactured in India and China to improve its competitiveness
in the Asian markets.
August 18, 2010