Switzerland-based Rieter Holding Ltd. announced sales and profits for the Rieter Group will be
lower than any forecasts for the year. The company cites the current global economic downturn,
which has negatively impacted both textile machinery and automobile markets.
The Textile Systems Division reports received orders are expected to decline 65 percent in
2008 when compared to 2007 figures, and sales will decline some 30 percent. Operating profits
before special charges also will not meet forecast figures.
Decreased demand for automobiles worldwide also has affected sales for Rieter’s Automotive
After reporting reduced profits in the first half of 2008 and anticipating lower sales for
the rest of the year, Rieter launched an extensive restructuring program
Reports Substanstial Downturn In Machinery Demand,” Aug. 19, 2008,
www.TextileWorld.com). The program included the transfer of manufacturing
operations and capacity adjustments in addition to a hiring freeze, termination of temporary
employees, overtime reductions and early retirements.
In addition to the measures previously implemented, Rieter is reducing capital expenditures
and is working to lower working capital. The company also continues to implement part-time work
schedules for employees in North America and Europe, as well as layoffs of both temporary and
permanent personnel. The restructuring will cost the company some 250 million Swiss francs, and
impairment charges on goodwill amounting to 100 million Swiss francs will have to be recognized.
Rieter expects consolidated sales in 2008 to be more than 20 percent lower than in 2007.
In light of the current unsettling financial picture, Rieter said it will not make any
financial forecasts for 2009 at this time.
In other company news, Rieter Group has launched its new website, which offers a more clearly
structured, user-friendly navigation so visitors can quickly locate group and division contacts and
information. The site, located at
www.rieter.com, features an Open Source Content Management
System, enabling the company to frequently update, expand and optimize the content. The Rieter
Textile Systems section is now available in Chinese and Turkish as well as in English and German.
December 9, 2008