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The Textile Magazine
August 2012
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37
Compared with the first half of
2011, the operating profit before
interest and taxes (EBIT) declined
from 70.6 million CHF to 32.0 mil-
lion CHF, equivalent to 7.2 per cent
of corporate output (12.8 per cent in
the first half of 2011). The operat-
ing profit before interest and taxes
includes expenditures incurred in
the reporting period for the steps
completed in the investment pro-
gram 2012/2013. The expenditures
amounted to 12.5 million CHF and
reduced the EBIT margin by almost
three percentage points. The operat-
ing profit before strategic projects,
interest and taxes amounted to 44.5
million CHF or 10.1 per cent of
corporate output. Expenditure on
research and development amount-
ed to 20.9 million CHF in the first
half of 2012 (19.3 million CHF in
the first half of 2011).
Lower profitability is also at-
tributable to lower volumes, the
weakness of the Indian market and
increased pressure on prices for
business invoiced in Swiss francs.
Major efforts to cut costs and en-
hance productivity at all locations
partly compensated for this.
Net profit declined compared
with the previous year’s outcome,
amounting to 21.9 million CHF or
five per cent of corporate output (91
million CHF and 16.5 per cent in
the first half of 2011). This reduc-
tion was mainly due to the absence
of the extraordinary capital gain of
42.3 million CHF arising from the
sale of shares in Lakshmi Machine
Works in India in the first half of
2011 and the lower operating profit.
Rieter employed a global work-
force of 4,679 as on June 30, 2012
Mr. Erwin Stoller, Chairman
corporate