In the first half of 2005 Rieter completed the takeover of Suessen and also acquired the shares that it did not already own in US automotive supplier Magee Rieter Automotive Systems.
Suessen, which specializes in components for ring and rotor spinning machines, was fully consolidated as of January 1, 2005, and is an important element in Rieter's strategy of further expansion in the component business. Rieter is also reinforcing its position in the strategically important Asian markets by integrating Suessen's manufacturing facility in India.
By acquiring the entire capital of Magee, Rieter will further expand the automotive supply business in North America and also increasingly supply integrated acoustic systems with carpets to Japanese customers in the US.
Rieter continues to have a sound financial basis: its equity ratio is 46.0% (46.1% on December 31, 2004), net liquidity amounts to 67.2 million CHF (217.5 million CHF on December 31, 2004), and cash flow of 118.9 million CHF was generated in the first six months (135.0 million CHF in the same period of 2004).
The decline in net liquidity in the first half of 2005 was due to the dividend payment to shareholders of Rieter Holding Ltd, the purchase of the remaining shares in Magee Rieter and Suessen, and a seasonal increase in working capital.
marketing@alchempro.com
