In the first nine months of fiscal 2017, the amount of
orders received by Switzerland-based Rieter Group was recorded higher than for
the same period in the previous year. Cumulative order intake amounted to CHF
765.0 million and was thus up by 6 per cent on the said prior year period.
Order intake in the third quarter was CHF 269.7 million."The
market environment in the third quarter of 2017 was characterised by differing
dynamics in the individual countries as well as with regards to the product
categories.
While the company achieved a high order intake in Asia (excluding China, India
and Turkey), demand in China, and particularly India, was restrained. In
Turkey, demand for new machines revived in the third quarter," said the
company press release. All three business groups contributed to the positive
growth compared to the previous year.The Machines & Systems Business Group
posted an order intake of CHF 490.1 million, a slight increase (+3%) compared
to the first nine months of the previous year (2016: CHF 477.6 million).
Machines & Systems received orders worth CHF 164.9 million in the third
quarter (Q3 2016: CHF 134.2 million). In Asia (excluding China, India and
Turkey), order intake in the third quarter was significantly above the previous
year’s level. In
Uzbekistan, in particular, there was strong demand for classic ring spinning
systems.The
After Sales Business Group increased order intake from CHF 103.3 million to CHF
115.8 million, an improvement of 12 per cent compared to the previous year.
Order volumes in the third quarter, which totaled CHF 38.0 million, were higher
than in the corresponding period of the prior year (Q3 2016: CHF 32.0 million).
The rising demand for after-sales services in Asia, China and India contributed
to the growth. The spare parts business continued to develop well. The increase
in orders in the machines business resulted in higher demand for installation
services in the After Sales Business Group.
In the Components Business Group, order intake of CHF 159.1 million was
recorded, this being around 16 per cent above the corresponding period of the
previous year (2016: CHF 137.5 million). In the third quarter, order intake
amounted to CHF 66.8 million (Q3 2016: CHF 41.5 million). SSM Textile Machinery (SSM) contributed CHF 19.2 million to this
significant increase of CHF 25.3 million, supported by generally improved
growth in demand in the business group. In China and other Asian countries,
order intake was higher overall.
For fiscal 2017, Rieter expects slightly higher sales than in the previous year
and an EBIT slightly below the prior year level (before restructuring charges),
due to the product andcountry mix.
For the whole of 2017, Rieter anticipates sales in the region of CHF 980
million and operating profitability (EBIT margin) of 4.5-5.5 per cent before
restructuring charges. The restructuring charges amount to CHF 36 million. As a
result, Rieter expects a net profit of around 1- 2 per cent of sales for the
2017 financial year.
Source: The Swazi Observer, Swaziland Saturday, 28 October 2017