Automotive upswing for Rieter

Rieter Rieter Group successfully exploited the improved market environment in the first half of 2010, increasing its overall  order intake for both textile machinery and automotive components by 92%, to a value of Sfr 1.615.3 million compared to 840 million in the first half of 2009.
At the same time, sales increased by 34% to Sfr 1.201 million compared to Sfr 899.8 million in the comparable period of 2009. The company is now planning to double capital expenditure in the second half of 2010 compared with the same period of 2009, primarily in Asia. In the context of focusing on the Textile Division’s core businesses, Rieter signed a contract with Andritz in the fourth quarter of 2009 for the sale of Rieter’s nonwovens activities in France. This sale was completed in the first quarter of 2010.
Rieter Automotive Systems reports a strong increase in sales and positive operating result. Automotive production in the first half of 2010 increased to 36.7 million vehicles compared with 26.1 million in the same period of 2009. The highest growth rates were recorded
in North America, which alongside Europe is one of Rieter’s main markets. Output increased there by 73% to six million vehicles, making North America the most dynamic market, ahead of China (+46%).
These growth rates, however, have to be viewed against the backdrop of the previous year’s very low levels – the slump in vehicle production in North America in the second quarter of 2009 was exceptionally steep – due in part to the insolvency of two key car manufacturers. In Europe, Rieter’s other main market, output continued to grow (+25%) even after scrappage premiums were phased out, but at a much slower pace than in the second half of 2009. The recovery in automotive production is being driven by strong growth in consumer demand. Production of commercial vehicles, which has been at a very low level in the past year, again increased worldwide, especially in the second quarter of 2010. China’s share of global output of heavy commercial vehicles already
Rieter Automotive’s first half sales increased by 35% to Sfr 876.7 million  (Sfr 650.3 million in 2009). The highest growth rates were recorded in North and South America and in Asia, where growth in China was 70%.
A positive operating result of Sfr18.5 million was posted, compared to a loss  of Sfr 78 million in the first six months of 2009 – an improvement of Sfr 96.5 million.
In addition to the volume effect –sales Sfr 226.4 million – this was attributable to the effective implementation of  restructuring and cost-cutting programmes.
Rieter Automotive commenced production at a new
plant in southern India in the first half of the year. This is the second manufacturing facility in this emerging market, which has great growth potential. The same is true of China, where Rieter Automotive operates a development and acoustics center in addition to several manufacturing plants in order to serve both Chinese and foreign manufacturers.

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