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26.05.2022

Rieter anticipates losses in the first half of 2022

  • Exceptionally high order backlog and sustained strong demand
  • Supply chain bottlenecks, COVID lockdown in China and significant cost increases
  • Takeover of winding machine business leads to additional costs
  • Sales and earnings adversely impacted in first half-year
  • Considerably improved market position

Despite an exceptionally high order backlog and sustained strong demand, Rieter’s business situation in the first half of 2022 is characterized by the well-known supply chain bottlenecks, the repercussions of the COVID lockdown in China and the significant increases in material and transportation costs.

Further costs are added in connection with the takeover of the automatic winding business as of April 1, 2022.

These factors are adversely impacting both sales and earnings.

  • Exceptionally high order backlog and sustained strong demand
  • Supply chain bottlenecks, COVID lockdown in China and significant cost increases
  • Takeover of winding machine business leads to additional costs
  • Sales and earnings adversely impacted in first half-year
  • Considerably improved market position

Despite an exceptionally high order backlog and sustained strong demand, Rieter’s business situation in the first half of 2022 is characterized by the well-known supply chain bottlenecks, the repercussions of the COVID lockdown in China and the significant increases in material and transportation costs.

Further costs are added in connection with the takeover of the automatic winding business as of April 1, 2022.

These factors are adversely impacting both sales and earnings.

Rieter expects significantly higher sales in the first half of 2022 compared to the prior-year period (first half of 2021: CHF 400.5 million). Rieter anticipates a loss at the EBIT and net result level in the first half of 2022 (first half of 2021: EBIT CHF 9.0 million, net result: CHF 5.3 million).
The company is working intensively on the implementation of measures to minimize the impact of the supply chain bottlenecks, the COVID lockdown in China and the cost increases. The implemented price increases have a delayed effect, particularly in the machinery business. The integration of the automatic winding business is proceeding according to plan.

As soon as the situation in the sourcing markets has normalized, Rieter expects to benefit from the exceptionally high order backlog and the considerably improved market position as a result of the takeover of the automatic winding business as well as Accotex and Temco.
Rieter will provide a detailed report on the business results of the first half of 2022 in July 2022.

Source:

Rieter Management AG

01.04.2022

Rieter completes acquisition of the three Saurer businesses

With the takeover of the automatic winding machine business at the Uebach-Palenberg/Germany site with effect from April 1, 2022, Rieter has completed the acquisition of the three businesses from Saurer.

The acquisition of the automatic winding technology in the premium category completes Rieter’s ring and compact-spinning system and thus lays the foundation to further improve the company’s position in the staple fiber market segment.

The components businesses Accotex (elastomer technology for spinning machines) at the Muenster/Germany site and Temco (technology components for filament machines) at the Hammelburg/Germany site had already been acquired by Rieter as of December 1, 2021.

Rieter had announced the acquisition of the three businesses on August 16, 2021.

In total, the three businesses generated sales of EUR 142 million in 2020, the year of the COVID crisis. In 2019 and 2018, total sales amounted to EUR 235 million and EUR 260 million, respectively.

With the takeover of the automatic winding machine business at the Uebach-Palenberg/Germany site with effect from April 1, 2022, Rieter has completed the acquisition of the three businesses from Saurer.

The acquisition of the automatic winding technology in the premium category completes Rieter’s ring and compact-spinning system and thus lays the foundation to further improve the company’s position in the staple fiber market segment.

The components businesses Accotex (elastomer technology for spinning machines) at the Muenster/Germany site and Temco (technology components for filament machines) at the Hammelburg/Germany site had already been acquired by Rieter as of December 1, 2021.

Rieter had announced the acquisition of the three businesses on August 16, 2021.

In total, the three businesses generated sales of EUR 142 million in 2020, the year of the COVID crisis. In 2019 and 2018, total sales amounted to EUR 235 million and EUR 260 million, respectively.

The winding machine business with new machines will be assigned to the Business Group Machines & Systems, and the after-sales business will be assigned to the Business Group After Sales. The Accotex and Temco component businesses are managed by the Business Group Components.

Source:

Rieter Management AG

16.08.2021

Rieter Acquires Three Businesses from Saurer

  • Schlafhorst automatic winder as well as Accotex and Temco will be transferred from Saurer to Rieter
  • Investment to complete Rieter’s ring- and compact spinning systems and in two attractive component businesses
  • Closing expected during the month of August, implementation to be completed in six to nine months

On August 13, 2021, Rieter Holding Ltd., Winterthur/Switzerland, and Saurer Intelligent Technology Co. Ltd., Shanghai/China listed, signed an agreement by which Rieter will acquire three businesses from Saurer Netherlands Machinery Company B.V., Amsterdam/Netherlands, the parent company of Saurer Spinning Solutions GmbH & Co. KG, Uebach-Palenberg/Germany and Saurer Technologies GmbH & Co. KG, Krefeld/Germany.

With this acquisition, Rieter will complete the offering of ring- and compact spinning systems by acquiring the Schlafhorst automatic winder business. Additionally, Rieter invests in two attractive component businesses: Accotex (elastomer components for spinning machines) and Temco (bearing solutions for filament machines).

  • Schlafhorst automatic winder as well as Accotex and Temco will be transferred from Saurer to Rieter
  • Investment to complete Rieter’s ring- and compact spinning systems and in two attractive component businesses
  • Closing expected during the month of August, implementation to be completed in six to nine months

On August 13, 2021, Rieter Holding Ltd., Winterthur/Switzerland, and Saurer Intelligent Technology Co. Ltd., Shanghai/China listed, signed an agreement by which Rieter will acquire three businesses from Saurer Netherlands Machinery Company B.V., Amsterdam/Netherlands, the parent company of Saurer Spinning Solutions GmbH & Co. KG, Uebach-Palenberg/Germany and Saurer Technologies GmbH & Co. KG, Krefeld/Germany.

With this acquisition, Rieter will complete the offering of ring- and compact spinning systems by acquiring the Schlafhorst automatic winder business. Additionally, Rieter invests in two attractive component businesses: Accotex (elastomer components for spinning machines) and Temco (bearing solutions for filament machines).

In total, the three businesses had a combined turnover of EUR 142 million in 2020, the year of the COVID crisis. In 2019 and 2018, the total combined turnover was at a level of EUR 235 million and EUR 260 million, respectively.

The purchase price for the three businesses is EUR 300 million on a cash and debt free basis. Rieter has financed the purchase price by cash and available credit lines.

Rieter and Saurer expect to close the transaction during the month of August. In the first step of the transaction, Rieter will acquire 57% of the shares of Saurer Netherlands. The shares will be returned to Saurer after the implementation of the transaction in six to nine months.

In connection with the transaction, it is envisaged that Rieter will supply automatic winders to Saurer in the future.

Source:

Rieter Management AG