Rieter Reports Demand Pick-Up in H1

As a result of growing demand since March 2017, Rieter posted an order intake of CHF 495.2 million during the first half of 2017, which is 3% below the previous year’s level but 26% well above the second half of 2016.

Sales decreased by 5% year-on-year to CHF 415.2 million. On these sales, Rieter generated an EBITDA of CHF 34.8 million and an EBITDA margin of 8.4%.

The order backlog rose to around CHF 545 million, and it already extends into 2018.

Rieter achieved the most significant sales in Asian countries (not including China, India and Turkey) with a total of CHF 111.2 million (down 27%). The sales decline compared to the year before was mainly due to reduced shipments to Bangladesh and Vietnam. The order intake recorded during the period showed a positive development, and was significantly above the accomplished sales and benefited from the dynamism of Central Asian countries.

Sales in China declined by 20% to CHF 83.8 million, with one third of sales generated in Xinjiang Province. The order intake was slightly below sales. In the second quarter of 2017, Rieter recorded growing demand for its R 36 semi-automatic rotor spinning machines, which were introduced in 2016.

Sales in India rose by 16% to CHF 94.7 million, mainly due to the delivery of K 42 compact spinning machines and EliTe compact spinning systems, which were ordered in the second half of 2016. While the first months of 2017 were characterized by restraints due to the “demonetarization” at the end of 2016, demand during the April-June quarter was increasingly robust.

Sales in Turkey increased by 55% to CHF 49.1 million, which is attributable to the delivery of orders from the previous year’s period. The hesitant recovery in May and June meant that the order intake was below the level of sales.

In terms of sales and order intake, the North and South American and African regions were characterized by large individual orders in the machinery business.

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