WINTERTHUR, Switzerland — October 22, 2021 — The positive market dynamics, which Rieter has already reported on several occasions, continued in the third quarter of the current year. Rieter recorded an order intake of 698.6 million Swiss francs in the third quarter of 2021 (2020: 174.4 million Swiss francs). The order intake of 1,673.9 million Swiss francs after nine months corresponds to an increase of 294 percent compared to the prior year period (2020: 425.1 million Swiss francs).
The market development is broadly supported at the global level and is based on a catch-up effect from 2019 and 2020 in combination with a regional shift in demand. Rieter believes that a major reason for this regional shift in demand is the development of costs in China. This is leading to increased investments outside the Chinese market. The orders came primarily from Turkey, Latin America, India, Pakistan and China. Overall, Rieter is benefitting from its innovative product range and the global positioning of the company.
The Business Group Machines & Systems achieved an order intake totaling 1,281.6 million Swiss francs in the first nine months of 2021 (+447 percent). This is where the catch-up effect and the regional shift in demand are particularly evident.
In the first nine months of 2021, the Business Group Components recorded an increase of 95 percent to 227.0 million Swiss francs, while the Business Group After Sales posted an order intake of 165.3 million Swiss francs, an increase of 123 percent compared to the prior year period. The continued increased demand for spare and wear parts at the well utilized spinning mills is the main reason for the positive order intake in both Business Groups.
The order backlog as of September 30, 2021, was around 1,562 million Swiss francs (September 30, 2020: 515 million Swiss francs).
Acquisition of the three Saurer businesses on schedule
The acquisition of the three businesses from Saurer, which Rieter announced on August 16, 2021, is proceeding according to plan. The incoming orders for these businesses are not taken into account in this trading update.
Credit lines renewed early
The Rieter Group arranged the early renewal of the existing committed credit lines (five-year term, totaling 250 million Swiss francs).
The first nine months of 2021 were characterized by a rapid market recovery combined with a regional shift in demand. Rieter expects the demand for new systems to gradually return to normal in the coming months.
The company assumes that the spinning mills will continue to work at full capacity. For the full year 2021, Rieter anticipates sales of around 900 million Swiss francs.
The realization of sales from the order backlog continues to be associated with risks, in light of bottlenecks in material deliveries and freight capacities as well as the ongoing pandemic in countries that are important for Rieter.
Posted October 22, 2021
Source: Rieter Holding Ltd.