Rieter still confident of growth this year despite Q3 slowdown
04/11/2014
Rieter’s main objective is to establish itself as “the world’s leading supplier of short staple spinning systems” offering the full range of machines, components and parts; this remains unchanged.
Priorities for the next three years will be the reinforcement of its innovative capabilities and the expansion of its product and service offering, especially in parts and components. Additional resources for research and development are being budgeted for this purpose, it said in a statement.
Spinning mills have had to endure narrowing margins, the company continued, owing to declining raw material and yarn prices in the third quarter and this has resulted in “a slowdown in market momentum”, especially in Turkey, the Asian countries (excluding China and India) and Latin America. A positive momentum in India was maintained in the third quarter, while restraint in China continued, according to Rieter.
It said it expects a weaker second half of 2014 compared to the first six months of the year, but that it expects “at least high single digit growth” compared to 2013.
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