Rieter

A leading global supplier for textile machinery and components used in short-staple fiber spinning

A leading global supplier for textile machinery and components used in short-staple fiber spinning

The global provider of components for all spinning processes

Yarns that follow fashion

Rieter offers attractive positions around the world

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07/16/2003 - Rieter expects higher half year results

As planned, Rieter Holding AG will publish its half year report 2003 on August 21, 2003. In response to increasing inquiries by investors and analysts of late, the Company has decided to release the following preliminary information:

In line with previous statements to the public in spring 2003, Rieter reiterates its expectation that the group turnover in the first half of 2003 will slightly exceed that of the first half of 2002. The good order flow for the Textile Systems division significantly contributed to the positive increase in turnover.

With respect to operating profit as well as net profit, an increase can be expected for the first semester of 2003 versus the first half of 2002.

The increase in turnover in the second half of 2003 will likely slightly slow down. In the event that no heavy downturn in the rate of the automobile production will occur in Europe and in the US, Rieter expects a slightly higher group turnover for fiscal year 2003 as compared to the previous year. The operating profit (EBIT) for 2003 is, due to the increasing exposure to price pressure by the Automotive Systems division, expected to be slightly lower as compared to the previous year. In the event that capital markets will not deteriorate, the net profit for 2003 may exceed the corresponding previous year figure.

In the event of a potential broad placement of the Rieter shares currently held by the BZ Group, Rieter confirms its already stated willingness to support such a placement by purchasing own shares.

The Rieter Group operates internationally, developing and producing sophisticated systems solutions for the automotive and textile industries. In the 2002 financial year Rieter generated sales of 2 976 million CHF with 12 983 employees worldwide. The Textile Systems Division accounted for 1 108 million CHF and the Automotive Systems Division for 1 848 million CHF of this total.

All statements in this report which do not refer to historical facts are forecasts for the future which offer no guarantee whatsoever with respect to future performance; they embody risks and uncertainties which include – but are not confined to – future global economic conditions, exchange rates, legal provisions, market conditions, activities by competitors and other factors which are outside the company’s control.

Contact for the media:


Peter Grädel
 
Corporate Communications
 
T +41 52 208 70 12
 
 
Contact for financial analysts:


Hans Rudolf Widmer
 
CFO
 
T +41 52 208 81 78