Rieter 2014 sales up 11% on Asian markets growth

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Rieter took full advantage of the market dynamics in the 2014 financial year and improved its market share, thanks to successful products and extended presence in Asia. The company achieved double-digit sales growth with a particularly strong performance in the second half of the year.

Sales increased by a total of 11% to 1 153.4 million CHF. Orders received reached the level of sales in the year under review, at 1 146.1 million CHF. Rieter had a backlog of orders in hand of around 730 million CHF at the end of 2014. This means a high level of capacity utilisation until well into the 2015 financial year. Rieter will publish its full annual financial statements and the annual report for 2014 on March 18, 2015.

Orders received

New orders received by the Rieter Group reached the level of sales in 2014. Compared to the strong previous year, orders received decreased by 9% to 1 146.1 million CHF (2013: 1 259.4 million CHF). A large number of orders came from Asian countries, where spinning mill capacities were built up to supply the Chinese textile markets, from Turkey and the US.

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The positive trend in India continued throughout the year under review. In China demand was subdued, as in the previous year. In the favourable market environment of the first half of the year, Rieter recorded significantly higher order intake than in the more challenging second half. The decline in the second half of the year was mainly attributable to lower orders from Turkey and China, and affected Rieter’s machinery business more than its components business.

At Spun Yarn Systems, orders received decreased in the year under review by 10% to 973.8 million CHF, compared to the previous year (2013: 1 084.3 million CHF). Premium Textile Components (components business) almost equalled the previous year’s level, with orders of 172.3 million CHF (2013: 175.1 million CHF). Rieter had a backlog of orders in hand of around 730 million CHF at the end of 2014 (December 31, 2013: around 765 million CHF), which means a high level of capacity utilisation until well into the 2015 financial year.

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Sales

As expected, sales by Rieter developed strongly in the year under review and increased by 11% to 1 153.4 million CHF (2013: 1 035.3 million CHF). In the second half of the year, sales increased by 21% compared to the first half. Rieter reported the highest increase in the US, followed by Turkey, India and various Asian countries. In contrast, sales in China and Africa decreased compared to the previous year.

Spun Yarn Systems increased sales by 14% to 980.9 million CHF (2013: 857.8 million CHF). Premium Textile Components posted sales to third parties of 172.4 million CHF (2013: 177.5 million CHF). Segment sales, i.e. including deliveries to Spun Yarn Systems,  increased by 1% to 262.1 million CHF. Significantly supported by its extended capacities in Asia, Rieter achieved a record output of spindle equivalents. Rieter expects to achieve an EBIT margin of a good 7% and net profit of about 4.5% of sales in the 2014 financial year.

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