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20.10.2023

Rieter: Further job cuts, outlook for 2023 confirmed

Rieter’s cumulative sales in the first nine months of 2023 amounted to CHF 1 092.9 million (2022: CHF 987.4 million), an increase of 11% compared to the prior-year period. In particular, supply bottlenecks eased slightly, which allowed more machines to be delivered than in the same period last year. Sales in the third quarter of 2023
were CHF 334.7 million (Q3 2022: CHF 366.8 million).

The Business Group Machines & Systems generated total sales of CHF 749.6 million in the first nine months of 2023 (+18%). The Business Group Components posted sales of CHF 206.8 million, 11% lower than in the corresponding period of the previous year, while the Business Group After Sales recorded growth of 13% to CHF 136.5 million in the first nine months of 2023.

Order intake in the reporting period was characterized by restrained investment in new machinery in almost all regions except China. Demand for consumables, wear & tear and spare parts continued to weaken due to the slowdown in spinning mill capacity utilization. Rising interest rates and high energy and raw material prices also had a dampening effect.

Rieter’s cumulative sales in the first nine months of 2023 amounted to CHF 1 092.9 million (2022: CHF 987.4 million), an increase of 11% compared to the prior-year period. In particular, supply bottlenecks eased slightly, which allowed more machines to be delivered than in the same period last year. Sales in the third quarter of 2023
were CHF 334.7 million (Q3 2022: CHF 366.8 million).

The Business Group Machines & Systems generated total sales of CHF 749.6 million in the first nine months of 2023 (+18%). The Business Group Components posted sales of CHF 206.8 million, 11% lower than in the corresponding period of the previous year, while the Business Group After Sales recorded growth of 13% to CHF 136.5 million in the first nine months of 2023.

Order intake in the reporting period was characterized by restrained investment in new machinery in almost all regions except China. Demand for consumables, wear & tear and spare parts continued to weaken due to the slowdown in spinning mill capacity utilization. Rising interest rates and high energy and raw material prices also had a dampening effect.

In this market environment, the Rieter Group received orders totaling CHF 452.2 million in the first nine months of 2023 (2022: CHF 1 095.8 million). In the third quarter of 2023, orders decreased by 44% year-on-year to CHF 127.2 million (2022: CHF 226.4 million).

Rieter expects the market to have bottomed out in the year 2023 and anticipates a gradual market recovery in the course of the 2024 financial year.

As of September 30, 2023, Rieter has an order backlog of around CHF 900 million (September 30, 2022: CHF 2 000 million). The current order backlog will allow good capacity utilization at the production facilities into the coming year. The cancellation rate in the reporting period was within the usual range, averaging around 5% of the order backlog, with a slight downward trend.

In July 2023, the Group launched the “Next Level” performance program aimed at strengthening sales excellence, sharpening customer focus, improving cost efficiency in production and optimizing fixed cost structures. By taking these measures, Rieter intends to create the basis for providing an even more agile response to the cyclical nature of the machinery business. The objective of the planned initiatives is to ensure the profitable and sustainable development of the group.

The performance program includes provisions for the net reduction of approximately 300 positions in overhead functions across the group, primarily in Germany and Switzerland. The consultation processes initiated with the employee representatives in Ingolstadt (Germany) and Winterthur (Switzerland) were completed in the third quarter of 2023. The majority of these workforce reductions are expected to be implemented by the end of December 2023.

Due to the current market situation, further market- and volume-related adjustments in the range of 400 to 600 positions will be necessary, mainly in production. However, the actual number of positions to be reduced depends on the order intake in the coming months.

Rieter continues to expect that the strategic and operational measures initiated will result in one-off restructuring costs of around CHF 45 to 50 million, which will impact earnings in the 2023 financial year.

Outlook for the full year 2023 confirmed
As announced on July 20, 2023, in view of the economic situation and the ongoing cyclical market weakness, Rieter continues to expect below-average demand for new equipment in the coming months. A revival is not anticipated until the end of 2023 at the earliest. Likewise, Rieter believes that demand for consumables, wear & tear and spare parts will not recover until towards the end of 2023.

For the full year 2023, Rieter expects an EBIT margin of around 5 to 7% (including positive special effects of less than 2%) and sales at the previous year’s level of around CHF 1.5 billion.

Source:

Rieter Holding AG

20.07.2023

VDMA Textile Machinery: Planned PFAS ban threatens important textile machine components

The EU's planned ban on the entire group of per- and polyfluoroalkyl substances (PFAS) would endanger many industrial processes, states VDMA Textile Machinery. Textile manufacturing would be affected twice – by missing important chemicals for technical textile production and by the lack of indispensable textile machine components. The latter would affect the whole supply chain from textile machinery manufacturers and its suppliers to the textile industry in the EU.

The EU's planned ban on the entire group of per- and polyfluoroalkyl substances (PFAS) would endanger many industrial processes, states VDMA Textile Machinery. Textile manufacturing would be affected twice – by missing important chemicals for technical textile production and by the lack of indispensable textile machine components. The latter would affect the whole supply chain from textile machinery manufacturers and its suppliers to the textile industry in the EU.

Solid PFAS parts are widely used in textile machinery production, especially where extreme conditions prevail. Verena Thies, Managing Shareholder Thies GmbH & Co. KG, explains: “Our textile dyeing machines are world leaders and set standards in efficiency and sustainability. They work under pressure at temperatures of up to 140° C using highly acidic, highly basic and/or oxidative or even reductive chemicals. This is precisely why PFAS is needed, for example, in seals and rings, flaps as well as valves for a long-lasting and high-quality machine concept – because there are no alternatives with qualitatively equivalent properties. In addition, PTFE semi-finished products enable a sliding and gentle contact with the textile fabric in ecologically important techniques in the transformation of textile wet finishing."

PTFE and also FKM are fluoropolymers (fluoroplastics and fluoroelastomers), a group within the broad PFAS range of about 10,000 substances which would be banned for production, use and sale in the EU. They are high-tech materials, and as so-called "polymers of low concern" are not a danger to the environment, according to the OECD. Furthermore, these components are installed inside a machine and exchanged or disposed of properly. PFAS such as PTFE and FKM must be exempted from the ban, demands the VDMA in its position paper.

"In this way, the association also supports the approach taken in Great Britain. With the 10,000 substances, everything is lumped together, although the various PFAS groups are very different," warns Dr Sarah Brückner, Head of VDMA Environmental Affairs and Sustainability. "We should take our cue from the UK and look at the substance groups in a differentiated way."
Apart from several types of dyeing machines, PFAS components are indispensable in textile drying machines (e.g., conveyor dryers, tumblers and stenters) and damping machines. They are also used in fully automatic chemical dispensing systems and pressure vessels for thermochemical treatment of textile recycling material, heat recovery systems and wastewater treatment technology. This means that a lot of machines needed for a sustainable textile production would be affected by the PFAS ban.

VDMA Textile Machinery will take part in the ongoing EU public consultation. The association will describe indispensable key functionalities and conditions of use in the textile machinery sector as well as the consequences for the companies and the customers in the EU if the ban is imposed. The consultation ends on September 25, 2023, and VDMA urged its members affected by the planned restriction to participate in the consultation at an early stage. This is the only way to ensure that the broad scope of the mechanical and plant engineering sector is represented.

More information:
VDMA Textilmaschinen PFAS
Source:

VDMA e. V.
Textile Machinery

 

04.11.2022

Rieter publishes Investor Update 2022

  • Sales of CHF 366.8 million in the third quarter, CHF 987.4 million after nine months
  • Order intake of CHF 226.4 million in the third quarter, CHF 1 095.8 million after nine months
  • Order backlog of around CHF 2 000 million as of September 30, 2022
  • Precautionary measures taken against potential energy crisis in Europe
  • Financing of a Professorship for Artificial Intelligence
  • Rieter site sales process on schedule
  • Outlook 2022

Rieter recorded a significant increase in sales in the third quarter of 2022, reaching a level of CHF 366.8 million (2021: CHF 257.3 million). The measures introduced to increase sales and profitability in the second half of 2022 are taking effect and will continue to be implemented in a systematic manner. These include a close cooperation with key suppliers, the development of alternative solutions to eliminate material shortages, the enforcement of price increases, and the improvement of the margin quality of the order backlog.

  • Sales of CHF 366.8 million in the third quarter, CHF 987.4 million after nine months
  • Order intake of CHF 226.4 million in the third quarter, CHF 1 095.8 million after nine months
  • Order backlog of around CHF 2 000 million as of September 30, 2022
  • Precautionary measures taken against potential energy crisis in Europe
  • Financing of a Professorship for Artificial Intelligence
  • Rieter site sales process on schedule
  • Outlook 2022

Rieter recorded a significant increase in sales in the third quarter of 2022, reaching a level of CHF 366.8 million (2021: CHF 257.3 million). The measures introduced to increase sales and profitability in the second half of 2022 are taking effect and will continue to be implemented in a systematic manner. These include a close cooperation with key suppliers, the development of alternative solutions to eliminate material shortages, the enforcement of price increases, and the improvement of the margin quality of the order backlog.

The order intake of CHF 226.4 million in the third quarter of 2022 reflects the expected normalization of demand for new equipment compared to the record year of 2021, which was characterized by catch-up effects and the regional shift in demand. In addition, the well-known uncertainties and risks and the continuing extremely long delivery times at key manufacturers had a dampening effect on demand. Due to the slowdown in capacity utilization in the spinning mills, demand for consumables, wear & tear and spare parts also declined in the third quarter of 2022. Major orders continued to be recorded from Turkey, Uzbekistan, and China.

Rieter has a high order backlog of around CHF 2 000 million as of September 30, 2022 (September 30, 2021: CHF 1 562 million), which will guarantee capacity utilization in all three business groups until well into 2023 or rather 2024. The cancellation rate in the reporting period was around 5% of the order backlog.

Outlook 2022
Rieter anticipates weakened demand for new systems in the coming months. The demand for consumables, wear & tear and spare parts will depend on the capacity utilization of spinning mills in the months ahead.

For the full year 2022, Rieter expects sales of around CHF 1 400 million. The realization of sales revenue from the order backlog continues to be associated with risks in relation to the well-known uncertainties.

Despite significantly higher sales compared to the prior-year period, Rieter expects EBIT and net result for 2022 to be below the previous year’s level. This is due to the considerable increases in the cost of materials and logistics, additional costs for compensation of material shortages as well as expenses in connection with the acquisition in the years 2021/2022.

More information:
Rieter financial year 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

01.12.2021

Rieter Holding AG: Change in the Board of Directors

  • This E. Schneider will not stand for re-election at the 2022 Annual General Meeting
  • Sarah Kreienbühl and Daniel Grieder proposed for election as new members of the Board of Directors

This E. Schneider has informed the Board of Directors that, after 13 years of membership, he will not stand for re-election as a member of the Board of Directors and Vice Chairman of Rieter Holding AG at the next Annual General Meeting on April 7, 2022.

The Board of Directors of Rieter Holding AG will propose Sarah Kreienbühl and Daniel Grieder for election to the Board of Directors at the Annual General Meeting on April 7, 2022.

  • This E. Schneider will not stand for re-election at the 2022 Annual General Meeting
  • Sarah Kreienbühl and Daniel Grieder proposed for election as new members of the Board of Directors

This E. Schneider has informed the Board of Directors that, after 13 years of membership, he will not stand for re-election as a member of the Board of Directors and Vice Chairman of Rieter Holding AG at the next Annual General Meeting on April 7, 2022.

The Board of Directors of Rieter Holding AG will propose Sarah Kreienbühl and Daniel Grieder for election to the Board of Directors at the Annual General Meeting on April 7, 2022.

Sarah Kreienbühl has been a member of the Executive Board of the Federation of Migros Cooperatives since 2018 and heads among other things Human Resources and Communications of the Migros Group. Before that, she spent 14 years at Sonova as Group VP Corporate Human Resources, where she was also responsible for Corporate Communications from 2012. Sarah Kreienbühl holds both the Swiss and French citizenship and graduated from the University of Zurich with a degree in psychology. With her expertise and extensive leadership experience, she will be able to make an important contribution to Rieter’s human resources policy as a member of the Board of Directors.

Daniel Grieder has been CEO of HUGO BOSS AG, based in Metzingen (Germany), since June 2021. He has been working successfully in the textile industry for more than 35 years: initially from 1985 to 2004 as an independent entrepreneur with his own sales agency, which worked for Tommy Hilfiger from 1997. He joined Tommy Hilfiger directly in 2004 and took on additional roles for PVH from 2010 to 2020. He most recently held the positions of Global CEO Tommy Hilfiger and CEO PVH Europe. Daniel Grieder is a Swiss citizen and studied at the Zurich School of Economics and Business Administration.

Source:

Rieter Holding AG

22.10.2021

Rieter Investor Update 2021

  • Order intake of CHF 698.6 million in third quarter 2021
  • Order intake of CHF 1 673.9 million after nine months
  • Acquisition of the three Saurer businesses on schedule
  • Credit lines renewed early
  • Outlook 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 CHF 698.6 million in the third quarter of 2021 (2020: CHF 174.4 million).

  • Order intake of CHF 698.6 million in third quarter 2021
  • Order intake of CHF 1 673.9 million after nine months
  • Acquisition of the three Saurer businesses on schedule
  • Credit lines renewed early
  • Outlook 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 CHF 698.6 million in the third quarter of 2021 (2020: CHF 174.4 million).

The order intake of CHF 1 673.9 million after nine months corresponds to an increase of 294% compared to the prior year period (2020: CHF 425.1 million).
 
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 CHF 1 281.6 million in the first nine months of 2021 (+447%).*

In the first nine months of 2021, the Business Group Components recorded an increase of 95% to CHF 227.0 million, while the Business Group After Sales posted an order intake of CHF 165.3 million, an increase of 123% compared to the prior year period.*

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 CHF 250 million).
 
Outlook 2021*
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.  
 
For the full year 2021, Rieter anticipates sales of around CHF 900 million.

* See attached document for more information.

More information:
Rieter spinning Fibers yarn
Source:

Rieter Management AG

Photo: Sateri
26.08.2021

EU-BAT Compliance Confirmed for all Sateri Viscose Fibre Mills

  • Achievement Ahead of Schedule

All of Sateri’s five viscose mills in China are now fully compliant with the emission limits set out in the European Union Best Available Techniques Reference Document (EU-BAT BREF) on Polymers, following recent verification of Sateri Jiangsu and Sateri China mills.

Verified by independent consultant Sustainable Textile Solutions (STS), a division of BluWin Limited (UK), the parameters assessed included resource utility efficiency, wastewater discharge and air emission.

  • Achievement Ahead of Schedule

All of Sateri’s five viscose mills in China are now fully compliant with the emission limits set out in the European Union Best Available Techniques Reference Document (EU-BAT BREF) on Polymers, following recent verification of Sateri Jiangsu and Sateri China mills.

Verified by independent consultant Sustainable Textile Solutions (STS), a division of BluWin Limited (UK), the parameters assessed included resource utility efficiency, wastewater discharge and air emission.

Allen Zhang, President of Sateri said, “Sateri Jiangsu was established in 2019 following an acquisition while Sateri China was built in the same year. We had aimed to have both mills meet EU-BAT’s recommended emission levels by 2023. To achieve this two years ahead of schedule underscores our continuous efforts in process improvement and control of pollutant emissions, and resource utilization efficiency. We will continue to pursue manufacturing excellence and invest in best-in-class technologies for all our mills – existing, acquired, and newly constructed ones – as part of our Vision 2030 commitment towards closed-loop and cleaner production.”

Chen Xinwei, Chairman of China Chemical Fiber Industry Association, said, "China's regenerated cellulose fibre industry has been progressing steadily in recent years. As a major viscose manufacturer, Sateri has demonstrated leadership in benchmarking itself against advanced domestic and international standards, focusing on low-carbon development, energy-saving and emission-reduction technology, and cleaner production to advance sustainable development, as well as enhance the company’s competitiveness. All other players in the industry should be encouraged to follow suit."

Sateri is a member of the RGE group of companies; Sateri’s other three mills - Sateri Fujian, Sateri Jiujiang and Sateri China (Jiangxi) - had attained EU-BAT compliance in 2020.

Source:

Omnicom Public Relations Group

16.07.2021

Eruslu Nonwovens Group: Entering Biodegradable Nonwoven Market with Truetzschler Nonwovens’ Machinery

Truetzschler Nonwovens will deliver equipment to enlarge an existing spunlacing line - put into operation in 2015 at the Turkish Eruslu Nonwovens Group - into a flexible, state-of-the-art production line for various light to heavy weight sustainable nonwovens.

Last year Eruslu decided to broaden its portfolio in the wipes segment by adding biodegradable products from renewable resources. The group took full advantage of the 2015 small capacity line and went for:

  • a second NCR random and a NCA airlay card
  • fiber preparation and card feeding equipment for the two new cards
  • more hydraulic power to reliably and efficiently hydroentangle multi-layer webs
  • an extension to the dryer for increased evaporation capacity

After starting up in the second half of 2022, Eruslu will be operating an ultra-modern, highly flexible NCR-NCA-NCR spunlace line, the first of its kind in Turkey. The line is tailor-made to process virgin cotton fibers, comber noils and short fibers at high speeds. End products are top-quality, lightweight natural wipes or heavy-weight, three-layer nonwovens for cosmetic pads.

Truetzschler Nonwovens will deliver equipment to enlarge an existing spunlacing line - put into operation in 2015 at the Turkish Eruslu Nonwovens Group - into a flexible, state-of-the-art production line for various light to heavy weight sustainable nonwovens.

Last year Eruslu decided to broaden its portfolio in the wipes segment by adding biodegradable products from renewable resources. The group took full advantage of the 2015 small capacity line and went for:

  • a second NCR random and a NCA airlay card
  • fiber preparation and card feeding equipment for the two new cards
  • more hydraulic power to reliably and efficiently hydroentangle multi-layer webs
  • an extension to the dryer for increased evaporation capacity

After starting up in the second half of 2022, Eruslu will be operating an ultra-modern, highly flexible NCR-NCA-NCR spunlace line, the first of its kind in Turkey. The line is tailor-made to process virgin cotton fibers, comber noils and short fibers at high speeds. End products are top-quality, lightweight natural wipes or heavy-weight, three-layer nonwovens for cosmetic pads.

Source:

Trützschler Nonwovens & Man Made Fibers GmbH