Rieter recorded a significant increase in sales in the 3rd quarter (Q3) of 2022, reaching a level of CHF 366.8 million (2021: CHF 257.3 million). The measures introduced to increase sales and profitability in the 2nd half (H2) of 2022 are taking effect and will continue to be implemented in a systematic manner. These include a close cooperation with key suppliers, the development of alternative solutions to eliminate material shortages, the enforcement of price increases, and the improvement of the margin quality of the order backlog.
The order intake of CHF 226.4 million in Q3/2022 reflects the expected normalization of demand for new equipment compared to the record year of 2021, which was characterized by catch-up effects and the regional shift in demand. In addition, the well-known uncertainties and risks and the continuing extremely long delivery times at key manufacturers had a dampening effect on demand. Due to the slowdown in capacity utilization in the spinning mills, demand for consumables, wear and tear and spare parts also declined in Q3/2022. Major orders continued to be recorded from Turkey, Uzbekistan, and China.
Rieter has an exceptionally high order backlog of around CHF 2 billion as of September 30, 2022 (September 30, 2021: CHF 1.56 billion), which will guarantee capacity utilization in all 3 business groups until well into 2023 or rather 2024.
Business Group (BG) Machines & Systems achieved total sales of CHF 634.3 million in the first 9 months of 2022 (+66%). BG Components recorded an increase of 37% to CHF 232.6 million in the same period, while the BG After Sales posted sales of CHF 120.5 million, 14% higher compared to the prior-year period. In all 3 business groups, the measures introduced to eliminate material bottlenecks and safeguard supplies are having a positive impact.
Following the record year of 2021, the order intake of Rieter Group, Winterthur/Switzerland, fell by 35% in the first 3 quarters of 2022. In BG Machines & Systems, compared to the record year in 2021, the expected normalization of demand was clearly reflected in an order intake of CHF 696.2 million.
Rieter anticipates weakened demand for new systems in the coming months. The demand for consumables, wear and tear, and spare parts will depend on the capacity utilization of spinning mills in the months ahead. For the full year 2022, the company expects sales of around CHF 1.4 billion. The realization of sales revenue from the order backlog continues to be associated with risks in relation to the well-known uncertainties.
Despite significantly higher sales compared to the prior-year period, Rieter expects EBIT and net result for 2022 to be below the previous year’s level. This is due to the considerable increases in the cost of materials and logistics, additional costs for compensation of material shortages as well as expenses in connection with the acquisition of the automatic winding machine business, Accotex and Temco from Saurer Netherlands Machinery Company BV, Amsterdam/Netherlands, in the years 2021/2022.
The company will benefit from the continuing exceptionally high order backlog of around CHF 2 billion, the significantly improved market position, and the continuation of the regional shift in demand.