Uncertainty in India and China in 2012 hits Reiter hard
08/02/2013
In a statement, the company said orders for its spun-yarn systems were down in value by 10% compared to 2011, while the value of orders received in 2012 for its textile components was down by 21%. Its sales in 2012 had a combined value of 888.5 million Swiss francs.
“Uncertainty was the characteristic feature of all major economic regions of the world in 2012,” the statement said. “Suppliers of textile machinery and components faced additional challenges in their main markets of China and India. Spinning mills in India continued to struggle with the consequences of the distortions in raw material prices in the first half of the year, but a recovery in demand became apparent in the second half, especially in the north of the country.
“In China, spinning mills suffered as a result of government-regulated raw material prices. Overall, Rieter’s spinning mill customers recorded a more stable trend of business in the second half of the year and operated profitably. However, the business environment in yarn customers’ markets remained volatile and banks’ attitude to financing projects remained cautious.”
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