Rieter posts poor H1 figures but is confident fo - sportstextiles: Lea SportsTextiles

News

Rieter posts poor H1 figures but is confident for the long term

25/07/2012
Swiss textile machinery manufacturer Rieter has said in its report for the first six months of 2012 that orders were 40% lower than in the first half of the previous year. Sales for the January-June period were also down, by 9%, compared to the corresponding period in 2011, reaching $490 million.

There was also a sharp fall in net profits, more than 75% down at $22.2 million.

“Global economic uncertainties affected the markets for short-staple fibre machinery and components in China and Turkey,” the company said on releasing the results. “In India, demand remained weak also due to industry-specific reasons. Yarn inventories, which were still very large last summer, continued to decline.”

It said it expects global demand for short staple fibres to grow by an average of 2.3% annually until 2030. The additional spinning capacity this will require, the replacement demand and the trend toward greater automation, especially in the Chinese and Indian markets, will have a positive impact on demand for spinning machinery and components, Rieter insisted.

Against this background it is aiming for overall annual average growth of 5%, half of which should be organic. Rieter’s strategic targets are to retain its position in the premium segment and to expand its position in the local markets in China and India.

Sportstextiles.com cannot be held responsible for content if the language setting is changed from English.

The translations provided by Google Translate are automated and therefore might not be accurate and may contain incorrect, offensive or misleading language. We offer this facility as a guide only.