Rieter's textiles order book swells, target markets - China & India
15 Aug '06
6 min read
The good order situation resulted in higher capacity utilization in the first half of the year, and delivery lead times tended to lengthen. Sales in the first six months therefore did not rise as steeply as order intake; they increased by 30% to 651.7 million CHF (499.8 million CHF in 2005); the increase excluding acquisitions and currency effects amounted to 20%. The operating result before interest and taxes (EBIT) at Textile Systems doubled to 62.0 million CHF (30.1 Mio. CHF in 2005) and the operating margin increased to the very good level of 9.7% of corporate output (6.0% in 2005). The unsatisfactory earnings in the manmade fiber machinery business had a negative impact.
Rieter will systematically expand its presence in Asia, especially in China and India, in order to benefit from the geographical shift in the textile value chain. At the same time capacity and structures at existing locations will be adjusted to the new competitive situation.
On the basis of the high level of orders on hand and its flexible cost structure, Rieter Textile Systems expects to achieve significantly higher sales and operating earnings for the year as a whole.
marketing@alchempro.com
