From the Sector

Reset
5 results
19.07.2022

Rieter starts sales process for the remaining land owned by Rieter

  • Order intake of CHF 869.4 million, order backlog of more than CHF 2 100 million
  • Sales of CHF 620.6 million, preproduced deliveries in the three-digit million range had to be postponed until the second half of 2022
  • EBIT of CHF -10.2 million, net result of CHF -25.2 million due to significant cost increases, additional costs, and acquisition-related expenses
  • Action plan to increase sales and profitability
  • Rieter site Winterthur
  • Outlook

Rieter continued to be successful in the market in the first half of 2022. Based on the company’s technology leadership, innovative product portfolio and the completion of the ring- and compact-spinning system, a high order intake and a significant increase in sales were generated. The increase in sales was achieved even though preproduced deliveries in the three-digit million range had to be postponed until the second half of 2022. The order backlog is at a record level.

  • Order intake of CHF 869.4 million, order backlog of more than CHF 2 100 million
  • Sales of CHF 620.6 million, preproduced deliveries in the three-digit million range had to be postponed until the second half of 2022
  • EBIT of CHF -10.2 million, net result of CHF -25.2 million due to significant cost increases, additional costs, and acquisition-related expenses
  • Action plan to increase sales and profitability
  • Rieter site Winterthur
  • Outlook

Rieter continued to be successful in the market in the first half of 2022. Based on the company’s technology leadership, innovative product portfolio and the completion of the ring- and compact-spinning system, a high order intake and a significant increase in sales were generated. The increase in sales was achieved even though preproduced deliveries in the three-digit million range had to be postponed until the second half of 2022. The order backlog is at a record level. Despite higher sales, the significant increase in material and logistics costs, additional costs for compensation of the material shortages and the expenditure incurred for the acquisition in the years 2021/2022 resulted in a loss. Rieter is implementing an action plan to increase sales and profitability. The sales process for the remaining land owned by Rieter was initiated.

Order Intake and Order Backlog
Rieter posted an order intake of CHF 869.4 million, which included CHF 176.6 million from the businesses acquired in the years 2021/2022. As expected, demand has thus returned to normal compared with the exceptionally high figure for the prior-year period, but remains well above the average figure for the last five years of around CHF 570 million (first half 2021: CHF 975.3 million, first half 2022 excluding acquisition effect CHF 692.8 million).

The regional shift in demand with investments in additional spinning capacity outside China along with investments in the competitiveness of Chinese spinning mills continues. Rieter benefits from its technology leadership, the innovative product portfolio and the completion of the ring- and compact-spinning system through the acquisition of the automatic winding machine business. The largest order intakes came from India, Turkey, China, Uzbekistan, and Pakistan.

On June 30, 2022, the company had an order backlog of more than CHF 2 100 million (June 30, 2021: CHF 1 135 million). Cancellations in the reporting period amounted to around 5% of the order backlog.

Sales
The Rieter Group posted sales of CHF 620.6 million, which included CHF 68.9 million from the businesses acquired in the years 2021/2022 (first half 2021: CHF 400.5 million).

As a result, sales were significantly higher than in the prior-year period, although preproduced deliveries, which mainly affected the Business Group Machines & Systems, in the three-digit million range had to be postponed until the second half of 2022. The reasons for the postponements were the COVID lockdown in China and supply chain bottlenecks.

EBIT, Net Result and Free Cash Flow
Rieter posted a loss of CHF -10.2 million at the EBIT level in the first half of 2022.

Earnings were impacted by significantly higher material and logistics costs. The price increases already implemented are having a delayed effect, mainly in the Business Group Machines & Systems, and were therefore unable to compensate for the high increase in costs. In addition, costs in connection with material shortages negatively impacted profitability. The result also includes acquisition-related expenses of CHF -11.2 million.

The loss at the net result level was CHF -25.2 million, of which CHF -17.6 million was due to the acquisition.

Free cash flow was CHF -57.1 million, attributable to the build-up of inventories in connection with the high order backlog and postponed deliveries.

Action Plan to Increase Sales and Profitability
Rieter is implementing a comprehensive package of measures with the aim of increasing sales and profitability in the second half of 2022.

The package focuses on two main priorities: Firstly, Rieter is continuing to systematically implement price increases while working to improve the quality of margins of the order backlog, so as to compensate for cost increases in materials and logistics.
Secondly, Rieter is working closely with key suppliers and is developing alternative solutions to eliminate material bottlenecks, as far as possible, in order to safeguard deliveries.

Rieter Site Winterthur
The Board of Directors has decided to begin the process for the sale of the remaining land at the Rieter site in Winterthur (Switzerland). In total, around 75 000 m2 of land will be sold.

Outlook
As already reported, Rieter expects demand for new systems to normalize further in the coming months. Due to the capacity utilization at spinning mills, the company anticipates that demand for consumables, wear & tear and spare parts will remain at a good level.

For the full year 2022, due to the high order backlog and the consolidation of the businesses acquired from Saurer, Rieter expects sales of around CHF 1 400 million (2021: CHF 969.2 million). The reduced sales forecast compared to early 2022 (March 2022: CHF 1 500 million) reflects the impact of global supply bottlenecks. The realization of sales revenue from the order backlog continues to be associated with risks in relation to the well-known challenges.

Despite significantly higher sales, 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 expenses in connection with the acquisition in the years 2021/2022. Despite the price increases already implemented, global cost increases continue to pose a risk to the growth of profitability.

Source:

Rieter Holding AG

(c) 2022, SSM
07.04.2022

Swiss Textile Machinery members at Techtextil

High-performance yarns now offer almost unlimited possibilities for replacing traditional raw materials in a vast range of technical applications. Often tailor-made, these filament yarns go way beyond the conventional idea of ‘textiles’ – finding new uses in sectors such as automotive, aviation, maritime, medical and construction, among many others.

Technical textiles are everywhere in our daily lives today, even if we may not always realize it. Some are in more obviously textile products, from sewing threads to artificial turf. But then, take cars as an example: modern vehicles are stuffed with parts made from sophisticated yarns. It’s common for producers of automotive parts now to send template material and requirement lists to Swiss Textile Machinery members, trusting their expertise and experience. Members operate development and testing centers with latest machine installations, where their experts devise customized solutions, as well as calling on the pure innovative spirit which is part of their DNA.

High-performance yarns now offer almost unlimited possibilities for replacing traditional raw materials in a vast range of technical applications. Often tailor-made, these filament yarns go way beyond the conventional idea of ‘textiles’ – finding new uses in sectors such as automotive, aviation, maritime, medical and construction, among many others.

Technical textiles are everywhere in our daily lives today, even if we may not always realize it. Some are in more obviously textile products, from sewing threads to artificial turf. But then, take cars as an example: modern vehicles are stuffed with parts made from sophisticated yarns. It’s common for producers of automotive parts now to send template material and requirement lists to Swiss Textile Machinery members, trusting their expertise and experience. Members operate development and testing centers with latest machine installations, where their experts devise customized solutions, as well as calling on the pure innovative spirit which is part of their DNA.

At the extremes
Technology drives applications beyond our current imagining in the case of Heberlein air splicers. Developed for a wide range of uses with high-strength technical fibers, they have no problems splicing aramid fibers up to 16’100 dtex, carbon up to 30’000 dtex, Dyneema up to 5’500 dtex, and glass up to 4’800 tex. Using compressed air, the splicers produce a tear-resistant, homogeneous splice of material without interfering knots.

Retech has the technology to achieve specifications for filament yarns, drawing and stretching fibers to perfection. Top heated godet rolls – many customized – are developed for high-performance fibers. Temperatures up to 400 °C can be achieved. Combining the right settings and wide speed ranges for each specific process results in unique end-products.

Fabric producers of high-end applications must avoid any quality risk. Yarn producers are well aware of this responsibility, so they use precision package winders for technical yarns, developed by Rieter’s subsidiary SSM. Taking yarns from ring twisting bobbins, its specialist finish winders can produce coarse-count technical yarns up to 50’000 dtex, offering a new level of flexibility and winding quality.

Lifestyle essentials
At first glance, motorists might fail to notice many of the technical yarns ‘hidden’ inside their cars. These products have functions such as providing stability with hardly any weight, or absorbing tensile forces at defined elongation. This kind of controlled elongation behaviour, for example, arises from the choice of textile material and the special construction of the yarns used.

Such specifications make twisting and cabling machines essential for the automotive industry. Saurer offers machines for the production of technical yarns made from a variety of feed materials in a very wide yarn count range. They are needed for vehicle products such as tire carcasses, toothed engine belts, seat belts, airbags and lorry tarpaulins.

Technical yarns also play a surprising role in our mobile devices. Tapping, scrolling and swiping are second nature for billions, with our phones and a plethora of other lifestyle essentials. Yet, how many people would know that the touch-sensitivity we take for granted on these screens is largely made possible by twisted glass fibers. Bräcker, part of Rieter’s components business, offers a selection of vertical sinter metal rings and nylon travelers for glass fiber twisting, so that mills can achieve high levels of productivity and quality.

Future unlimited
Automotive and communication technology are already important industries for Swiss Textile Machinery members, along with well-known technical textiles markets in sectors such as medical, transport and construction. Smart-wear is already noted as a field with significant potential. Naturally, members are constantly investigating other possibilities. Swiss textile machinery is already applied in energy (batteries), and plastics.

The Swiss Textile Machinery Pavilion will be at the Techtextil exhibition in Frankfurt, Germany, taking place from 21 to 24 June 2022.

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

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

VDMA member companies at ITMA ASIA + CITME (c) ITMA
07.06.2021

VDMA member companies at ITMA ASIA + CITME

Although affected by the Covid-19 pandemic, ITMA ASIA + CITME, which takes place mid-June in Shanghai, will see a convincing participation of VDMA member companies. 56 exhibitors from Germany will exhibit at this year’s edition of Asia’s major fair for textile machinery. Due to the pandemic and travel restrictions, this is much less than in 2018, when 99 exhibitors from Germany were present. The booked space of German companies has almost halved compared to 2018. Nevertheless, Germany is still the second largest exhibitor nation after China.

At a virtual VDMA press conference early June, these renowned VDMA member companies* presented their highlights for the Asian market:

Although affected by the Covid-19 pandemic, ITMA ASIA + CITME, which takes place mid-June in Shanghai, will see a convincing participation of VDMA member companies. 56 exhibitors from Germany will exhibit at this year’s edition of Asia’s major fair for textile machinery. Due to the pandemic and travel restrictions, this is much less than in 2018, when 99 exhibitors from Germany were present. The booked space of German companies has almost halved compared to 2018. Nevertheless, Germany is still the second largest exhibitor nation after China.

At a virtual VDMA press conference early June, these renowned VDMA member companies* presented their highlights for the Asian market:

  • Oerlikon Polymer Processing Solutions Division
  • Truetzschler Group
  • Neuenhauser
  • Saurer
  • Karl Mayer
  • Groz-Beckert
  • Herzog
  • Lenze
  • Mahlo
  • Sedo Treepoint
  • Thies

Instead of visiting the show personally, the VDMA offers a virtual trip to Asia. The established "Textile Machinery Webtalk" series via the newsroom IndustryArena will focus on ITMA ASIA in the run-up to the fair: VDMA Webtalks meet ITMA ASIA.

*See attached document for more information.