Rieter's textiles order book swells, target markets - China & India
15 Aug '06
6 min read
Rieter's net profit rose to 82.1 million CHF (54.9 million CHF in 2005), equivalent to 4.7% of corporate output (3.7% in 2005). Higher operating earnings and a lower tax rate were the main contributors to this positive outcome. Earnings per share increased by 57% to 18.82 CHF (12.02 CHF in 2005).
Rieter's financial basis remains sound: the equity ratio on June 30, 2006, was 45.4% (46.0% on June 30, 2005) and net liquidity amounted to minus 25.5 million CHF (67.2 million CHF in 2005). Cash flow of 138.8 million CHF was generated in the first half (118.9 million CHF in the same period of 2005). The decline in net liquidity since June 30, 2005 was due to the acquisition of the Graf Group in the second half of 2005, the purchase of the remaining shares in Rieter Saifa in Spain and Unikeller India, investments to exploit growth opportunities and cost benefits, and a sales-related, seasonal increase in working capital in the first half of 2006.
Rieter's workforce totaled 14 914 on June 30, 2006 (13 990 on June 30, 2005). The increase was primarily due to acquisitions and also to the expansion of production capacity in low-cost countries in Eastern Europe, Asia and South America.
Outlook Rieter will exploit growth opportunities in the emerging Asian and Eastern European markets and systematically undertake the structural adjustments this necessitates. Due mainly to the very good order situation at Textile Systems, Rieter expects significant sales growth and a further improvement in operating profitability in the 2006 financial year.
marketing@alchempro.com
