Lockdowns, rising costs and bottlenecks will blight Rieter’s H1 results
Short-staple fibre spinning machinery developer Rieter has said it expects its sales revenues for the first half of 2022 to be higher than the CHF (Swiss francs) 400 million it achieved in the same period last year. However, it said it expects its pre-tax earnings to be lower than last year’s CHF 9 million.
The Winterthur-based technology provider will formally report its first-half results in mid-July, but it issued a trading update at the end of May to inform the market of a number of factors that will affect the figures.
Rieter said in the update that it had “an exceptionally high order backlog” and “sustained strong demand” from textile manufacturers for its machinery. But it explained that its first-half results would be adversely affected by supply chain bottlenecks, by covid-19 lockdowns in China and by rising costs.
It said it was working to minimise the impact of these factors and added that it was confident the order backlog would bring benefits to the business when the market situation returns to normal.
