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Rieter reports 289% increase in order intake in H1 2021

Jul 16, 2021
Rieter reports 289% increase in order intake in H1 2021

Rieter posted an order intake of CHF 975.3 million in Jan-June 2021, an increase of 289% compared to the same period of previous year. The global recovery is based on a catch-up effect relating to 2019 and 2020 and a regional shift in demand.

Rieter is benefitting from its innovative product portfolio and the company’s global positioning. The highest order intake was recorded in Turkey. A key driver of growth in the machinery business has been the demand for innovative complete systems in the areas of ring and compact spinning. The successful commercialization of the compacting devices and the piecing robot ROBOspin, launched in 2019, contributed to the increase in the Business Groups Components and After Sales.

In the first half of 2021, the Business Group Machines and Systems realized sales in the amount of CHF 218.9 million, which corresponds to an increase of about 83% compared to the previous year period. Spinning mills are working at good capacity levels with an increased demand for components as well as spare and wear parts, which is the reason for the positive development in the Business Groups After Sales and Components.

In the Asian countries, Rieter recorded sales of CHF 137.0 million (+57%) for the first half of the financial year 2021. In China, sales rose by 85% to CHF 68.5 million. The recovery of the market in India resulted in a significant increase of 188% to CHF 51.0 million. In Turkey, sales improved slightly to CHF 59.8 million (+17%). Sales increased by 94% to CHF 59.8 million in the region North and South America, driven by a considerable increase in demand in Latin America.

In terms of EBIT, Rieter posted a profit of CHF 9.0 million for the first half of 2021 and a net profit of CHF 5.3 million. A one-off effect associated with the reversal of allowances for machinery that was delivered in the first half of 2021 contributed to this development.

In recent years, Rieter has consistently implemented its strategy based on the cornerstones of innovation leadership, strengthening the components, spare parts and services businesses, and adjusting cost structures. The focus for 2021 remains on the implementation of crisis management in countries that continue to be affected by the pandemic.

The Rieter Board of Directors has approved the implementation of the CAMPUS project which comprises a customer and technology centre as well as an administration building at the Winterthur location.

The first half of 2021 has been characterized by a strong market recovery in combination with a regional shift in demand for new machinery and systems. Rieter anticipates that spinning mills will continue to work at high-capacity levels and for the full year, sales to be above CHF 900 million.

Rieter is the world’s leading supplier of systems for short-staple fibre spinning. Based in Winterthur (Switzerland), the company is the only supplier worldwide to cover both spinning preparation processes and all four end spinning processes currently established on the market. Furthermore, Rieter is a leader in the field of precision winding machines.

Source: Rieter Press Release

Image Source: Rieter Press Releasec

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