WINTERTHUR, Switzerland — January 30, 2019 — The Rieter Group achieved an order intake of 868.8 million Swiss francs in the 2018 financial year, 17 percent down on the previous year period (2017: 1,051.5 million Swiss francs). At 1,075.2 million Swiss francs, total sales were 11-percent higher than the previous year (2017: 965.6 million Swiss francs). Net liquidity increased to 150.3 million Swiss francs(December 31, 2017: 130.5 million Swiss francs). The full annual financial statements and the 2018 Annual Report will be published by Rieter on March 13, 2019.
Order intake by Business group
The Business Group Machines & Systems posted an order intake of 468.3 million Swiss francs, a reduction of 30 percent compared to the previous year. Demand in the new machinery business was characterized by uncertainties in Asia and Turkey as well as the tense financing situation for emerging market customers. Both factors had a negative impact on the investment sentiment in the spinning industry. This was especially evident in the fourth quarter of 2018, which with an order intake of 34.9 million Swiss francs was very weak in all regions.
In the Business Group Components, order intake was 260.1 million Swiss francs, around 14 percent above the previous year (excluding acquisition -6 percent). Due to weaker macro- economic conditions, order intake in the fourth quarter of 2018 amounted to 55.0 million Swiss francs which was lower than in the previous quarters. This decline can be attributed to a low propensity for investments by customers.
With an order intake of 140.4 million Swiss francs, the Business Group After Sales recorded a year-on-year decline of 9 percent. Order intake of 29.1 million Swiss francs in the fourth quarter of 2018 was lower than in the previous quarters. This is due in particular to the lower order intake for installation services for new Rieter machines.
Sales by Business Group
Group sales in 2018 amounted to 1,075.2 million Swiss francs (2017: 965.6 million Swiss francs), an increase of 11 percent over the previous year. Rieter achieved increased sales thanks to organic growth in the Business Group Machines & Systems. In addition, the acquisition of SSM Textile Machinery in the Business Group Components supported this positive development. The Business Groups After Sales and Components were able to maintain the previous year’s levels of sales despite during the second semester of 2018.
In the Asian countries (excluding China, India and Turkey), Rieter increased sales in the reporting year by 36 percent to 433.9 million Swiss francs, of which Uzbekistan contributed 144.1 million Swiss francs. In 2018, sales in China fell by 19 percent to 148.6 million Swiss francs. With the phasing out of the subsidy program in the western province of Xinjiang, the demand for machinery declined. Sales in India fell by 16 percent to 146.2 million Swiss francs. In Turkey, Rieter achieved sales of 154.8 million Swiss francs (+55 percent) in a difficult market environment, thanks to the introduction of the new ring and compact spinning machines. Sales in North and South America amounted to 108.6 million Swiss francs (-5 percent). In the Europe region, Rieter increased sales by 3 percent to 47.3 million Swiss francs. Sales in the Africa region amounted to 35.8 million Swiss francs (+29 percent).
At the end of 2018, Rieter’s order backlog amounted to about 325 million Swiss francs (December 31, 2017: about 540 million Swiss francs). Due to the development of the business as described above, Rieter is planning capacity adjustment and cost reduction measures.
Kurt Ledermann new CFO of Rieter Group
The Board of Directors of Rieter Holding Ltd. has appointed Kurt Ledermann to the Group Executive Committee of Rieter Group as CFO, effective June 1, 2019.
Kurt Ledermann started his career with SIKA AG in the area of finances after having graduated from ETH Zurich with a degree in electrical engineering and from St. Gallen University with a degree in business administration. He has been working at Schaffner Holding AG in Luterbach (Switzerland) as Chief Financial Officer since 2008. Kurt Ledermann was born in 1968 and is a Swiss citizen.
Annual General Meeting of April 4, 2019
The 2019 Annual General Meeting of Rieter Holding Ltd. will take place on April 4 at the Eulach-Hallen in Winterthur, Switzerland. Any proposals regarding the agenda are to be submitted in writing to Rieter Holding Ltd., Office of the Company Secretary, Klosterstrasse 32, CH-8406 Winterthur, Switzerland by February 22, 2019 at the latest, accompanied by information concerning the relevant motions and evidence of the necessary shareholdings (with a par value of 0.5 million Swiss francs as stipulated by Article 699 of the Swiss Code of Obligations and §9 of the Articles of Association).
Posted January 30, 2019
Source: Rieter Holding Ltd.