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The Textile Magazine
FEBRUARY 2012
Rieter
retains marketshare
despite global uncertainties
corporate news
Rieter
recorded
appreciable
growth in the 2011 financial year.
Sales rose by 22 per cent to 1,060.8
million CHF. Orders received were
34 per cent lower than the excep-
tionally strong outcome in the previ-
ous year, but remained at a healthy
level of 958.3 million CHF.
Rieter still has a good backlog
of orders in hand. The figures as of
December 31, 2011, are the first re-
ported by it for a full financial year
in the new structure which came into
effect on May 13, 2011, following
the separation of the Rieter Group.
Since then Rieter has been an in-
dustrially focused supplier of ma-
chinery and components for staple
fiber spinning mills. It will publish
final figures and its annual report on
March 21, 2012.
The boom in demand on the
world market for textile machin-
ery and components experienced
in 2010 continued in the first quar-
ter of 2011. The investment climate
started to cool off as of the second
quarter. The high cost of cotton and
declining yarn prices intensified
pressure on spinning mills’ mar-
gins and liquidity. The second half
of the year was also dominated by
uncertainty due to the trend in raw
material prices and prospects for the
global economy.
As of the second quarter the
market retreated to a lower level
compared with the previous year.
Demand for yarns also declined in
2011. However, spinning mills were
able to reduce yarn inventories to
some extent again in the second half
of the year.
Order intake affected
Orders totalling 958.3 million
CHF received by Rieter in 2011
were 34 per cent lower than the very
high figure recorded in the previ-
ous year (-31 per cent in local cur-
rencies). The decline occurred in
particular as of the second quarter
and affected both business groups.
While orders received by Spun Yarn
Systems were 36 per cent lower at
775 million CHF, at Premium Tex-
tile Components they declined by 22
per cent to 183.3 million CHF (-34
per cent and -17 per cent respec-
tively in local currencies). Generally
speaking, the components business
is less subject to market cycles than
the machinery business.
Some customers postponed or
cancelled orders as a consequence
of the disruption on the raw mate-
rial and yarn markets. Most cancel-
lations affected orders placed in the
peak year of 2010. Rieter, therefore,
adjusted its order book by a total of
112.6 million CHF in the second
half of 2011. Excluding cancella-
tions, orders received in the second
Mr. Peter Gnaegi,
Executive Vice President, Rieter