Signs of recovery at Rieter
Switzerland-based textile machinery and automotive product provider Rieter says times were difficult last year but that a recovery appears to be in sight.
The company has posted a 38% decline in sales for 2009, with sales totalling CHF2 billion ($1.9 billion). However, sales for the second half were down just 21% year-on-year and rose 17% compared with the first half.
Net loss for the year was CHF217.5 million compared with CHF396.7 million in 2008. However, compared to the first half of 2009, net loss halved during the second six-month period.
According to the company, the world market for textile machinery featured a steep downturn from spring 2008 until mid-2009. It says that demand declined because government stimulus programmes to expand spinning capacity in large textile-producing countries expired and that consumption of textiles in major markets such as the US and Europe contracted for economic reasons.
Nevertheless, it started to see signs of a slight revival last summer, particularly in India and China. In 2009, orders received by Rieter Textile Systems totalled CHF510.8 million, a decline of 5% compared with CHF539.5 million the previous year. Order intake during the second half of the year was 69% higher than during the first half.
In 2009, Rieter Textile Systems continued to expand its presence in China and India as well developing products with a price/performance ratio appropriate to these large textile-producing countries.
The company anticipates “significant sales growth” in 2010 compared with 2009.
