Rieter records 47 per cent slump in sales

Rieter has reported a 47 per cent decline in sales for the first nine months of 2024, from 1092.9 million Swiss francs in the same period of 2023 to 584.3 million francs this year. The Winterthur-based company has also announced an order backlog of around 690 million francs as of September 30, 2024, compared with 900 million francs on the same date last year. However, orders in the third quarter alone amounted to 226.4 million francs, representing a rise of 78% compared with the same period last year (127.2 million francs). According to a press release, Rieter is anticipating sales in the order of around 900 million francs and an EBIT margin remaining at 2 to 4 per cent for full-year 2024.

The press release explains that the market recovery is “proving to be more restrained than previously forecast”, but that the first signs of a recovery in financial year 2024 have been seen in the key markets in China and India.

According to Rieter, the market environment is characterized by restrained investment in new machinery, in almost all regions other than China. It adds that demand for consumables, wear and tear and spare parts has reduced slightly as a result of low spinning mill capacity utilization. However, Rieter recorded an order intake totaling 629.8 million francs in all market regions in the first nine months of 2024 (2023: 452.2 million francs), which means that orders have increased for the third consecutive quarter.

Rieter develops and manufactures machines, systems and components for processing natural and man-made fibers and their blends into yarns. The company was established over 225 years ago, has 18 production sites in 10 countries and employs a global workforce of around 4,800 people, of whom around 16 per cent work in Switzerland. ce/gba