Rieter received orders worth CHF671.3m ($836m) in the first half of 2011, continuing the positive development reported in 2010.
Value of orders declined 9% compared with the exceptionally high figure in the same period of the previous year, but is still above the long-term average, said Rieter.
Sales increased by 66% to CHF537.8m ($669.8m). Expressed in local currencies the increase amounted to 73%.
Rieter posted a disproportionately strong rise in the operating result before interest and taxes, which increased from CHF2m ($2.49m) in the first half of 2010 to CHF70.6m ($87.9m). This corresponds to an operating margin of 12.8% of corporate output.
Net profit also developed positively, rising from CHF7.5m ($9.3m) to CHF91m ($113.3m), boosted by a net capital gain of CHF42.3m ($52.7m). Excluding capital gains, it amounted to 8.8% of corporate output. In the period under review Rieter intensified capital expenditure in the major Asian growth markets and pressed on with the development of products adapted to local needs in emerging markets.
Rieter expects the decrease in order intake to continue in the second half of the year compared with the first six months. Order intake for 2011 as a whole is unlikely to equal the previous yearΆs extraordinarily high total, it believes.
Rieter foresees pressure on customersΆ margins and liquidity persisting in the second half of 2011. It is currently difficult to forecast whether the factors that are impacting the markets are short-lived or will continue for a prolonged period. Further developments depend on various factors, which include exchange rate developments, consumer sentiment in Europe and North America, growth in fibre consumption in Asia and raw material prices.
The high level of orders in hand secures capacity utilisation and sales revenues in the current financial year and well into the coming year. Rieter will continue to pursue the expansion of facilities in Asia, product developments and process improvements in the second half of 2011.
It expects a substantial increase in sales compared with the previous year and double-digit operating margins for the year as a whole.
