Swiss firm Rieter's H1 2022 challenging despite high order backlog

Sales and earnings were adversely impacted in H1 and the company’s takeover of the winding machine business led to additional costs. 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 said in a press release.

The company is working intensively on the implementation of measures to minimise 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 normalised, Rieter will 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 on July 19, 2022

Fibre2Fashion News Desk (RR)