Rieter
(Source: Rieter)
In the 1st half of 2022, the business situation at Rieter is characterized by the well-known supply chain bottlenecks, the repercussions of the Covid 19 lockdown in China and the significant increases in material and transportation costs. And despite this challenging situation, the order backlog remains high, and demand continues to be strong.
Effective April 1, 2022, Rieter Holding AG, Winterthur/Switzerland, acquired the winding machine business from Saurer Netherlands Machinery Company B.V., Amsterdam/Netherlands. These factors are adversely impacting both sales and earnings. Rieter expects significantly higher sales in the 1st half of 2022 compared to the prior-year period (H1/2021: CHF 400.5 million). Rieter anticipates a loss at the EBIT and net result level in H1/2022 (H1/2021: EBIT CHF 9.0 million, net result: CHF 5.3 million).
The company is working intensively on the implementation of measures to minimize the impact of the supply chain bottlenecks, the Covid 19 lockdown in China and the cost increases. The implemented price increases have a delayed effect, particularly in the machinery business. The integration of the automatic winding business is proceeding according to plan. As soon as the situation in the sourcing markets has normalized, Rieter will benefit from the exceptionally high order backlog and the considerably improved market position as a result of the takeover of the automatic winding business as well as Accotex and Temco. Rieter will provide a detailed report on the business results of H1/2022 on July 19, 2022.
