Rieter: Low demand in the new machinery busin...

Low demand in the new machinery business in H1/2019

In the 1st half (H1) of 2019, the textile machinery manufacturer Rieter Holding AG, Winterthur/Switzerland, saw an order intake of CHF 378.3 million, a decline of around 26% compared to H1/2018. Sales in H1/2019 amounted to CHF 416.1 million, representing a decline of 19% compared to the previous year. The significant decline in sales in the machinery business resulted in an overall EBIT of CHF -1.2 million in H1/2019 (H1/2018: CHF +14.1 million). The cost-cutting measures introduced had a positive effect on the result from the 2nd quarter (Q2) of 2019.

The declines in order intake and sales were mainly due to low demand in the new machinery business for Business Group (BG) Machines & Systems: -34% and -27% respectively.

In the Asian countries (excluding China, India and Turkey), sales fell by 17% to CHF 165.4 million. In Vietnam and Pakistan, by contrast, sales increased compared to the previous year period. In China, sales declined by 12% to CHF 72.6 million, while sales in India increased by 11% to CHF 66.7 million. In Turkey, sales fell by 58% to CHF 24.5 million in the H1/2019. Sales in North and South America declined by 8% to CHF 54.8 million, in the Europe region, sales amounted to CHF 23.1 million (-13%) and in Africa to CHF 9.0 million (-68%).

BG Components posted an order intake of CHF 115.8 million, around 17% down on the same period previous year. The decline was related, in particular, to the business activities of SSM and Suessen. At CHF 123.3 million, sales were 10% down on the prior year level. Business for wear and tear parts for spinning mills, however, is running at a good level. Order intake in BG After Sales fell by 12% year-on-year to CHF 66.3 million. However, the spare parts business for spinning mills is at a good level. At CHF 72.0 million, sales were 3% down on the previous year.

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