Rieter's textiles order book swells, target markets - China & India
15 Aug '06
6 min read
In the first half of 2006 the Rieter Group made further progress in developing its presence in the emerging markets in Asia and Eastern Europe. Projects aimed at expanding operations in these sales regions and exploiting cost benefits were successfully implemented by both divisions. In the first six months Rieter vigorously continued to adjust production capacity to the new competitive situation and will pursue this process further in the second half of the year.
– Orders received by Textile Systems almost doubled – Higher sales and operating result at both divisions
The good trend of business in the second half of 2005 continued in the first six months of the current year, especially in the textile machinery business, but also in the automotive component supply sector. Orders received were 36% higher at 2 094.1 million CHF (1 544.2 million CHF in 2005). This was due mainly to a 91% increase at Textile Systems. Excluding acquisitions and currency effects, the increase on group level amounted to 30%. Group sales rose by 16% to 1 771.6 million CHF (1 525.6 million CHF in 2005). This was mainly attributable to the very good trend of business at Textile Systems, good organic growth at Automotive Systems, the firsttime consolidation of the Graf Group (+ 3%) and positive currency effects (+ 3%).
Rieter reported a sharp increase of 46% in the operating result before interest and taxes to 116.8 million CHF (80.2 million CHF in 2005), equivalent to 6.7% of corporate output (5.3% in 2005). Operating margins improved at both divisions. Results were adversely affected by the higher cost of energy and materials, unsatisfactory earnings in the manmade fiber sector at Textile Systems and restructuring costs of 11.5 million CHF (2.5 million CHF in 2005).
marketing@alchempro.com
