Rieter Reports 22% Higher Sales for 2011
February 9, 2012 Rieter Holdings posted positive revenue growth in 2011, with sales increasing 22% to nearly $1.2 billion. However, orders received decreased 34% last year to $1.04 billion as the investment climate cooled off in the second half of 2011.
The 2010 boom in demand on the world market for textile machinery and components continued through the first quarter of 2011, but began to taper off. The high cost of cotton, combined with declining yarn prices, intensified the pressure on spinning mills’ margins and liquidity.
The second half of the year was also dominated by uncertainty due to volatile raw material prices and uncertain prospects for the global economy. Demand for yarns also declined in 2011 overall, although spinning mills were able to reduce their yarn inventories to some extent in the second half of the year.
The sales figures are the first reported by Rieter for a full financial year in the new structure the company put into place on May 13, 2011, following the separation of the Rieter Group. Since that time, the company has been an industrially focused supplier of machinery and components for staple fiber spinning mills.
Rieter will publish final figures and its annual report on March 21, 2012.
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