Winterthur based largest machinery producing company Rieter Management AG announced the 2005 semi-annual report.
The dominant features of the first six months of 2005 for the Rieter Group were the low inclination to invest on the part of spinning mills and continued weakness in economic activity in the automotive industry's traditional main markets. As already reported, Rieter therefore, recorded lower sales and earnings in the first half of 2005.
Orders received declined by 7% to 1 544.2 million CHF. Group sales of 1 539.3 million CHF were 5% lower than in the strong first half of 2004.
While the automotive supply business succeeded in maintaining the previous year's level of sales in local currencies, the trend in the textile machinery business was adversely affected by the uncertainties arising after WTO textile quota arrangements were discontinued.
The operating result before interest and taxes (EBIT) amounted to 80.2 million CHF (104.3 million CHF in 2004) or 5.3% of corporate output (6.6% in 2004). The earnings improvement at Automotive Systems was not sufficient to compensate for the volume-related decline in earnings at Textile Systems. The Rieter Group posted improved financial results.
Net profit amounted to 54.9 million CHF (67.7 million CHF in 2004), which is equivalent to 3.6% of corporate output (4.3% in 2004). Earnings per share were 12.02 CHF, compared with 15.07 CHF in the first half of 2004. The increase in thenumber of employees to 13 990 (13 520 in 2004) was due primarily to the integration of the components manufacturer Suessen with its locations in Germany and India, and to the expansion of activities in China.
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