Sales dip as Rieter announces changes - sportstextiles: Lea SportsTextiles

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Sales dip as Rieter announces changes

02/02/2017
Swiss textile machinery manufacturer Rieter recorded a 13% increase in the volume of orders in 2016 compared to the previous year.

The total value of sales fell 9%, despite a strong second half of the year. They came in at CHF 945 million. The company said this drop on 2015 was in line with expectations.

Sales in China grew 33% to CHF 186.5 million and revenue from India increased 28% to CHF 182.1 million. The news from other regions wasn’t as positive, with declines seen in in the rest of Asia (-12%), Europe (-32%) and the Americas (-57%).

Rieter also announced plans to reorganise operations at its site in Ingolstadt, Germany. The changes will see the facility focus on the development of machines and the provision of technical support for the after-sales business. Production operations will be transferred to its site in Usti, Czech Republic. 

It will result in the loss of around 220 jobs in Ingolstadt. Rieter estimates the reorganisation will result in a cost reduction of CHF 15-20 million from 2019.

Related stories:

Dip in sales and orders for Rieter 20/07/2017
Rieter moves into “adjacent fields” with new acquisition 03/07/2017
Rieter reports textile machinery order increase of almost 50% 28/10/2016
Rieter’s orders on the increase 21/07/2016
Job losses in Switzerland as Rieter cements position in Asia 16/03/2016
Textile companies ‘reluctant to invest’ in machinery 01/02/2016
Rieter to choose new directors in April 01/12/2015
Rieter warns of low orders but concentrates on upgrades for spinners 13/11/2015
Rieter to reduce production and employee numbers in Switzerland 22/10/2015

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