Weaker demand for textile machinery
Switzerland-based The Rieter Group has revised its expectations downward for the current financial year, mainly because of declining demand for textile machinery.
Based on current exchange rates, it now foresees a significant decline in sales and a decrease in operating margins. Rieter Textile Systems posted record figures for orders received, sales and operating earnings in 2007. However, demand has been weakening since the fourth quarter of 2007 and suffered a steep decline in March and April 2008.
The main reason for this is the currently subdued business outlook for Asian spinning mills. New orders received in the first four months were more than 50% lower than in the previous year.
Since any substantial improvement is not expected before the end of 2008, sales are expected to be significantly lower than previously envisaged, especially in the second half of the year.
