Bad news from textile machinery providers
13/08/2008
Oerlikon, the world’s biggest maker of spinning machines, has cut its 2008 profit forecast, while another Swiss machine manufacturer, Rieter, has said it will shed 2,000 jobs after a fall in demand for its machines.
On August 13, Oerlikon predicted a 33% drop in operating profits, while Rieter said in its half-yearly report that it was forecasting a 20% fall in sales and will spend more than $200million in trimming operations.
Rieter said in a statement: “The global textile machinery market, which had already been weakening since the first quarter of 2007, demand for staple fibre machinery has declined steeply since March 2008. Customers in Rieter’s main markets, especially Asian spinning mills,have drastically reduced or postponed capital investment.”
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