www.rieter.com

Rieter General Assembly Approves All Board Proposals

Wed, 18 Apr 2012 19:04:00 +0200

The 121st Annual General Meeting of Rieter Holding Ltd was attended by 650 shareholders representing 52.5 % of share capital. They approved all Board proposals, the Annual Report with the annual accounts and consolidated financial statements for 2011, and formal discharge of the Board of Directors and Group Executive Committee members for the business year 2011. Consultative approval of the Compensation Report was confirmed by an 81.55% majority of those present. A dividend of 6.00 CHF per registered share was approved for payment from capital reserves without deduction of withholding tax.

Shareholders voted Dr. Jakob Baer, Michael Pieper, This E. Schneider, Hans-Peter Schwald and Peter Spuhler to the Board of Directors for another 3-year term of office. Mr. This E. Schneider will continue as Vice Chairman of the Board and Lead Director.

By approving an amendment to the Articles of Incorporation, shareholders enabled the creation of authorized capital for the next two years in the amount of up to 2.5 million CHF or 500 000 shares. This assures Rieter of the necessary financial flexibility for exploiting without delay strategic opportunities such as acquisitions.

In his review of the current situation, Executive Chairman Erwin Stoller confirmed prospects for the business year 2012 as announced at the Rieter Results Press Conference on March 21.

Contact persons for further information:

Rieter Holding AG	Rieter Management AG
Investor Relations	Media Relations
Joris Gröflin Chief Financial Officer T +41 52 208 70 15 F +41 52 208 70 60 investor@who-needs-spam.rieter.com www.rieter.com	Barbara Rösch Corporate Communications T +41 52 208 70 32 F +41 52 208 70 60 media@who-needs-spam.rieter.com www.rieter.com

Press release

2011 financial year

Wed, 21 Mar 2012 07:00:00 +0100

The Rieter Group reached a historical turning point in spring 2011. Shareholders adopted the proposal by the Board of Directors to separate the group and for its two divisions – Textile Systems and Automotive Systems – to operate in future as independent companies, each with its own stock market listing. Following the completion of the separation, Rieter is an industrially focused supplier of machinery and components for staple fiber spinning mills. It conducts the business of the former Rieter Textile Systems Division in two business groups, Spun Yarn Systems (machinery business) and Premium Textile Components (components business). Rieter is reporting results to December 31, 2011, for the first time in respect of a full financial year in this new structure.

The 2011 financial year as a whole was encouraging for Rieter. The company again reported striking sales growth and a significant increase in the operating result and net profit. Orders received were 34% lower than in the extraordinarily strong preceding year, achieving a good level of 958.3 million CHF. Rieter therefore still has a healthy level of orders in hand. Sales revenues increased by 22% to 1 060.8 million CHF. The increase in local currencies amounted to 27%. Rieter posted a disproportionately strong increase in the operating result, which rose by 49% from 75.7 million CHF to 112.6 million CHF. This is equivalent to 10.8% of corporate output. Net profit increased to 119.0 million CHF, equivalent to 11.4% of corporate output (82.9 million CHF and 9.9% in 2010). The Board of Directors is proposing that a dividend of 6.00 CHF be paid for the 2011 financial year out of the reserve from capital contributions. Rieter expanded its market position in the year under review and has a strong balance sheet. On this sound basis Rieter intensified its investment activities in 2011, especially in the large Asian growth markets and the development of products to meet the needs of specific markets. Rieter will continue intensified investment activity through the 2012 financial year to lay the foundations for further profitable growth.

Press Release Financial Year 2011

In 2011 the disruption on the financial markets, the currency crisis in Europe and the resulting strength of the Swiss franc created the most dramatic situation for the Swiss economy since the 1970s. Rieter held its own well overall in this difficult environment. The company has systematically assumed a global focus since the 1990s. By transferring manufacturing operations to customers’ markets, in particular to India and China, and also through existing facilities in European countries, Rieter is exploiting the cost benefits of these locations and at the same time limiting currency risks.

The boom in demand on the world market for textile machinery and components experienced in 2010 continued in the first quarter of 2011. The investment climate started to cool off as of the second quarter. The high cost of cotton and declining yarn prices intensified pressure on spinning mills’ margins and liquidity. The second half of the year was also dominated by uncertainty due to the trend in raw material prices and prospects for the global economy. As of the second quarter the market retreated to a lower level compared with the previous year. Demand for yarns also declined in 2011. However, spinning mills were able to reduce yarn inventories to some extent again in the second half of the year.

Orders received and sales

Rieter’s order intake of 958.3 million CHF in 2011 was 34% lower than the very high figure (1 454.6 million CHF) recorded in the previous year. In local currencies the decline amounted to 31%. This downturn was particularly apparent as of the second quarter and affected both business groups. However, the slowdown had less of an impact on the components business (Premium Textile Components Business Group) than the machinery business (Spun Yarn Systems Business Group). Some customers postponed or canceled orders as a consequence of the disruption on the raw material and yarn markets. Cancelations affected orders placed in the peak year of 2010 in particular. Rieter therefore adjusted its order book by a total of 112.6 million CHF in the second half of 2011. Excluding cancelations, orders received in the second half of the year amounted to 399.6 million CHF. Orders in hand at year-end were slightly over 600 million CHF.

China, Turkey and India were the sources of the largest volume of orders. South Korea, Indonesia, the USA, Brazil, Pakistan and Bangladesh were also important markets. All in all Rieter further expanded its market position worldwide in the year under review and gained market share with attractive products. In China and India, Rieter strengthened its market position with a specific offering for the local markets. This shows that Rieter has positioned itself well and made the right investment decisions in earlier years.

The high level of orders in hand from the previous year, which had continued to grow in the first quarter of 2011, utilized Rieter’s production capacity to its limits, resulting in long delivery lead times. The situation eased in the course of 2011 and Rieter was able to supply customers faster again. Sales rose by 22% compared with the previous year, to 1 060.8 million CHF (870.4 million CHF in 2010).

On December 31, 2011, Rieter employed a workforce of 4 695, compared with 4 395 a year earlier. Rieter engaged additional temporary personnel, also at its plants in China and India, in order to cope with the high level of orders in hand. At year-end these totaled 1 157 employees, equivalent to 20% of the entire workforce.

Operating result and net profit

Rieter achieved disproportionately strong growth in profitability through high capacity utilization and attractive products. The operating result before interest and taxes (EBIT) increased from 75.7 million CHF to 112.6 million CHF, corresponding to growth of 49%. The operating margin rose to 10.8% of corporate output, compared to 9.0% in the previous year. Lower sales by the Premium Textile Components Business Group, increased pressure on margins in business invoiced in Swiss francs and higher capital spending on projects to expand capacity in China and India and for innovations and process improvements resulted in a lower operating return in the second six months of the year.

Rieter’s net profit also increased significantly in the year under review, although the financial result was depressed by exchange losses and impairment of financial assets. The higher operating result and a capital gain contributed to this outcome. Net profit amounted to 119.0 million CHF or 11.4% of corporate output (82.9 million CHF and 9.9% in 2010). The capital gain of 47.3 million CHF arose from the reduction in Rieter’s equity interest in Lakshmi Machine Works in India, which was announced on April 1, 2011. Earnings per share on continuing operations therefore amounted to 25.86 CHF (15.63 CHF excluding the capital gain). Return on net assets (RONA) since the separation was thus 19.8% (13.1% excluding the capital gain).

Dividend

Rieter Holding Ltd. posted a net profit of 28.7 million CHF for the 2011 financial year (143.1 million CHF in 2010). The Board of Directors will propose to the Annual General Meeting on April 18, 2012, that a dividend of 6.00 CHF be paid for the 2011 financial year out of the reserve from capital contributions. In the previous year Rieter shareholders received a special dividend in the form of registered shares of Autoneum Holding Ltd., which has been listed on the SIX Swiss Exchange since May 13, 2011, and operates Rieter’s former automotive components supply business. Following the separation of the group, Rieter is aiming for a distribution ratio of about 30%, taking into consideration various factors such as the trend of business, liquidity needs and market prospects.

Spun Yarn Systems Business Group

Order intake of 775.0 million CHF by the Spun Yarn Systems Business Group in 2011 was 36% lower than a year earlier (1 217.9 million CHF). Sales by Spun Yarn Systems were 28% higher at 861.7 million CHF. Due to the high production volumes and good capacity utilization, the operating result before interest and taxes at Spun Yarn Systems almost doubled, rising from 42.4 million CHF to 81.2 million CHF. This is equivalent to an operating margin of 9.4% of corporate output (6.3% in 2010).

Premium Textile Components Business Group

Order intake by the Premium Textile Components Business Group declined by 22% to 183.3 million CHF in the year under review (235.2 million CHF in 2010). Generally speaking, the components business is less subject to market cycles than the machinery business. It therefore contributes to a more stable business trend for Rieter as a whole. Premium Textile Components posted a 4% increase in sales to 199.1 million CHF in the year under review. The operating result before interest and taxes rose from 29.6 million CHF to 35.1 million CHF. The operating margin of 12.9% of corporate output exceeded the previous year’s figure (12.5%).

Sound balance sheet and finances

Even after the separation of the Rieter Group and the establishment of the Automotive Systems Division as an independent company through distribution of a special dividend, Rieter still has a sound balance sheet with an equity ratio of 35% (32% in 2010).

Despite the substantial increase in capital expenditure compared with the previous year, especially for expansion in China and India, Rieter generated free cash flow of 79.5 million CHF. Net liquidity therefore improved further to 159.0 million CHF (-3.5 million CHF in 2010).

Rieter’s financial stability is additionally ensured by a 250 million CHF bond issue. On May 10, 2011, bondholders agreed that these bonds should remain in issue until 2015. This assures Rieter of strategic flexibility and the long-term financing of the company’s development.

Separation of the Rieter Group completed

The separation of the group into two independent companies focusing on the textile machinery and automotive component supply business respectively, as announced on March 22, 2011, and approved by the Annual General Meeting on April 13, 2011, was completed as planned. Rieter’s former automotive component supply business has been listed on the SIX Swiss Exchange as Autoneum Holding Ltd. since May 13, 2011. The former Rieter Automotive Systems Division features in the 2011 Annual Report as discontinued operations and appears as a separate item in the income statement. The special effects arising from revaluations included in this are of a technical nature and are non-recurring.

By focusing on the textile machinery business, Rieter can position itself more clearly and operate with greater strategic flexibility. Reporting in the two segments of Spun Yarn Systems and Premium Textile Components creates greater transparency and visibility for shareholders.

Systematic implementation of the strategy for long-term development of the business

On the basis of sound finances and a strong market position, Rieter intensified investment activity in 2011 in order to press on toward the achievement of its strategic goals and lay the foundations for further profitable growth. Investments in tangible assets were increased from 25.8 million CHF to 57.3 million CHF. Both business groups expanded manufacturing capacity in the large growth markets of China and India. By offering specific products, Rieter was increasingly successful in gaining customers who manufacture yarns for the domestic market in both countries. These markets continue to offer considerable growth potential with the increasing prosperity of the population.

Alongside this, in the year under review Rieter also invested in projects and programs to improve global processes and transfer production know-how, which will enhance flexibility, productivity and efficiency worldwide. Rieter will continue to pursue these investment projects in the years to come.

Rieter also accelerated innovation activity at both business groups. In 2011 Rieter increased research and development spending by 21% to 39.5 million CHF or 3.8% of corporate output (32.6 million CHF in 2010). At the ITMA, the industry’s most important trade show worldwide, which was held in Barcelona in September 2011, Rieter presented an updated product portfolio featuring innovations in spinning preparation and all final spinning technologies, in both the machinery and the components segment. Rieter seeks through innovation to strengthen its customers’ competitive position. Important objectives include novel types of yarn, improved utilization of raw material, lower operating costs and energy savings in spinning mills. Rieter is also continuously improving the price/performance ratio of its products.

Expertise in the textile value chain – a competitive advantage

Continuous innovative steps in components and machines are crucial to Rieter’s long-term success. Together with its recognized expertise in the textile value chain and the ability to manufacture high-precision components in volume, innovations secure Rieter’s strong global competitive position. The company is well placed to continue to maintain and extend its technological and innovation lead in the years to come. Rieter has a global customer base and presence and covers all four final spinning technologies as well as the relevant spinning preparation. Rieter is therefore able to optimize the spinning process as a whole.

Strong brands with an international impact

With its long industrial experience, its strong brands in the components business (Bräcker, Graf, Novibra and Suessen) and its extensive expertise in the textile value chain from raw materials to end products, the Rieter company enjoys global recognition. Rieter’s specialists attended not only the ITMA, but a large number of other important trade fairs and symposia in specific markets in 2011. Rieter makes a major contribution to developing know-how throughout the industry through the presentation of research and development results.

Rieter diligently protects know-how of vital business importance through patents and by other means.

Increased flexibility

In 2011 Rieter took a number of steps to position itself more effectively in the marketplace and gain further flexibility. In India Rieter sold its interest in the Rieter-LMW Machinery Ltd joint venture, which had been formed in 1994. This transaction was announced on April 1 and concluded at the beginning of July 2011. Rieter also reduced its holding in former joint venture partner Lakshmi Machine Works (LMW) from 13% to approximately 3%. Rieter thus responded to changes in the market environment and gained freedom of maneuver to expand its own presence in India, thus enabling Rieter to produce machinery and components for the Indian domestic market.

As announced on October 26, 2011, Rieter signed a contract of sale for two manufacturing facilities in the Czech Republic. This move gives Rieter additional manufacturing flexibility and at the same time creates optimal development prospects for these units. This transaction was concluded as planned after balance sheet date.

Board of Directors and Annual General Meeting

Shareholders elected Erwin Stoller to the Board of Directors for a further three-year term of office at the Annual General Meeting held on April 13, 2011. Erwin Stoller continues to chair this body.

Dr. Jakob Baer, Michael Pieper, This E. Schneider, Hans-Peter Schwald and Peter Spuhler are standing for re-election for a further three-year term of office at the Annual General Meeting to be held on April 18, 2012.

Apart from a dividend payment of 6.00 CHF per share out of the reserve from capital contributions, the Board of Directors will additionally propose to the Annual General Meeting that new authorized capital be created to the amount of 500 000 registered shares. This measure will provide Rieter with greater flexibility for financing external growth.

Outlook

Rieter will continue intensified investment activity through the 2012 financial year to lay the foundations for further profitable growth. To accelerate expansion in Asia and product innovation, Rieter plans investment activities totaling around 90 million CHF in 2012 and 2013, about half of which due in 2012. Investments totaling around 50 million CHF are planned in 2012/2013 for further improving global processes, just over half of which in the financial year 2012.

Rieter business activities are broadly based worldwide. Heterogeneous market development is expected for 2012. Due among other reasons to uncertain economic policies in major national markets, it is difficult to forecast textile machinery industry developments for the current year. Further trends depend on various factors including currency exchange rate developments, consumer sentiment in Europe and North America, fiber consumption growth in Asia, and raw material prices.

Against this background Rieter currently reckons for this business year with a sales decline in the high single-digit percentage range compared with prior year and a weaker trend in the first semester. The planned investment activity in growth projects will impact operating margin (EBIT) for 2012 and 2013 by about 1 percentage point, while investment activities in process improvement projects will reduce operating margin in these two years by about another two percentage points. Disregarding these projects, Rieter expects volume-dependent profitability around the prior year level.

Further information about the year-end results as well as the Annual Report 2011 and photos for the media can be found at www.rieter.com (Media>>>Media Kit).
At www.rieter.com you can also subscribe to the mailing list for our press releases.

2011 Annual Results Media Conference

Today, March 21, 09.00 h

2011 Annual Results Financial Analysts’ Conference

Today, March 21, 14.00 h

Location: Maschinenfabrik Rieter, Training Center, Klosterstrasse 32, 8406 Winterthur

Important dates 2012

Annual General Meeting 2012 April 18, 2012

Semi-annual report 2012 July 25, 2012

About Rieter

Rieter is a leading supplier on the world market for textile machinery and components used in short staple fiber spinning. Based in Winterthur (Switzerland), the company develops and manufactures systems, machinery and technology components used to convert natural and manmade fibers and their blends into yarns. Rieter is the only supplier worldwide to cover spinning preparation processes as well as all four final spinning processes currently established on the market. With 18 manufacturing locations in 9 countries, the company employs a global workforce of some 4 700, approx. 28% of whom are based in Switzerland. Rieter is listed on the SIX Swiss Exchange under ticker symbol RIEN. (www.rieter.com)

For further information please contact:

Rieter Holding AG

Rieter Management AG

Investor Relations

Media Relations

Joris Gröflin

Chief Financial Officer

T +41 52 208 70 15

F +41 52 208 70 60

investor@who-needs-spam.rieter.com
www.rieter.com

Barbara Rösch

Corporate Communications

T +41 52 208 70 32

F +41 52 208 70 60

media@rieter.com
www.rieter.com

Key Figures

CHF million		2011	2010	2011/2010 Change in %
Rieter
Orders received		958.3	1 454.6	- 34
Sales		1 060.8	870.4	22
Corporate output ¹		1 042.5	841.4	24
Operating result before interest and taxes (EBIT)²		112.6	75.7	4
- in % of corporate output		10.8	9.0
Net profit ³		119.0	82.9
- in % of corporate output		11.4	9.9
Investments in tangible fixed assets and intangible assets		57.3	25.8	122
Total assets		1 111.4	1 969.1	- 44
Shareholders’ equity before appropriation of profit		387.7	627.6	- 38
Number of employees at year-end ⁴		4 695	4 395	7
Business Group Spun Yarn Systems
Orders received		775.0	1 217.9	- 36
Sales		861.7	674.0	28
Corporate output ¹		866.3	669.4	29
Operating result before interest and taxes (EBIT)		81.2	42.4	92
- in % of corporate output		9.4	6.3	48
Business Group Premium Textile Components
Orders received		183.3	235.2	-22
Sales		199.1	190.6	4
Corporate output ¹		272.6	237.2	15
Operating result before interest and taxes (EBIT)		35.1	29.6	19
in % of corporate output		12.9	12.5	3
Rieter Holding Ltd.
Share capital		23.4	23.4
Net profit		28.7	143.1	- 80
Gross distribution		28.0⁵	- ⁶
Number of registered shares, paid-in		4 672 363	4 672 363
Average number of registered shares outstanding		4 625 281	4 640 220	6
Price share (high/low)	CHF	267/133⁷	343/244⁷
Number of registered shareholders on December 31		7 262	8 415	- 14
Market capitalization on December 31		653.2	1 565.8	- 58
Data per registered share
Earnings per share ³	CHF	25.86	17.18	45
Equity (group)⁸	CHF	81.92	120.57	- 32
Gross distribution (Rieter Holding Ltd.)	CHF	6.00⁵	- ⁶

1 Sales, adjustments for sales deductions and own work capitalized and changes in inventories of products manufactured by the company (see Annual Report page 32).

2 This includes in 2011 costs of projects for the expansion in Asia of about 10 million CHF as well as projects for process improvements of about 10 million CHF, mainly in the second half year.

3 From continuing operations (2011 incl. disposal gain).

4 Excluding apprentices and temporary employees

5 See proposal of the Board of Directors, Annual Report page 80.

6 Special dividend of one registered share of Autoneum Holding Ltd.

7 Source: Bloomberg.

8 Shareholders’ equity attributable to shareholders of Rieter Holding Ltd. per share outstanding at December 31.

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.

Rieter concentrates spinning machinery assembly in Winterthur – Sirnach site to be closed

Thu, 16 Feb 2012 07:00:00 +0100

Rieter Machine Works Ltd. is offering all 31 employees at the Sirnach site adequate further employment in Winterthur. Opportunities for deployment across the entire product spectrum assure personnel of continued varied and regular employment.

Following this move it is intended to dispose of the property in Sirnach in a suitable form. About Rieter
Rieter is a leading supplier on the world market for textile machinery and components used in short staple fiber spinning. Based in Winterthur (Switzerland), the company develops and manufactures systems, machinery and technology components used to convert natural and manmade fibers and their blends into yarns. Rieter is the only supplier worldwide to cover spinning preparation processes as well as all four final spinning processes currently established on the market. With 18 manufacturing locations in 9 countries, the company employs a global workforce of some 4 700, 28% of whom are based in Switzerland. Rieter is listed on the SIX Swiss Exchange under the ticker symbol RIEN. (www.rieter.com) For further information please contact:

Rieter Holding Ltd.
Investor Relations
Joris Gröflin
Chief Financial Officer
T +41 52 208 70 15
F +41 52 208 70 60
E-mail: investor@rieter.com

Rieter Management Ltd.
Media Relations
Barbara Rösch
Corporate Communications
T +41 52 208 70 32
F +41 52 208 70 60
E-mail: media@rieter.com

2011 financial year: Rieter reports significant increase in sales

Thu, 02 Feb 2012 07:00:00 +0100

Orders Received and Sales 2011 The boom in demand on the world market for textile machinery and components experienced in 2010 continued in the first quarter of 2011. The investment climate started to cool off as of the second quarter. The high cost of cotton and declining yarn prices intensified pressure on spinning mills’ margins and liquidity. The second half of the year was also dominated by uncertainty due to the trend in raw material prices and prospects for the global economy. As of the second quarter the market retreated to a lower level compared with the previous year. Demand for yarns also declined in 2011. However, spinning mills were able to reduce yarn inventories to some extent again in the second half of the year. Order intake affected by market disruption
Orders totaling 958.3 million CHF received by Rieter in 2011 were 34% lower than the very high figure recorded in the previous year (-31% in local currencies). The decline occurred in particular as of the second quarter and affected both Business Groups. While orders received by Spun Yarn Systems were 36% lower at 775.0 million CHF, at Premium Textile Components they declined by 22% to 183.3 million CHF (-34% and -17% respectively in local currencies). Generally speaking, the components business is less subject to market cycles than the machinery business.

Some customers postponed or canceled orders as a consequence of the disruption on the raw material and yarn markets. Most cancelations affected orders placed in the peak year of 2010. Rieter therefore adjusted its order book by a total of 112.6 million CHF in the second half of 2011. Excluding cancelations, orders received in the second half of the year amounted to 399.6 million CHF. Orders in hand at year-end were slightly over 600 million CHF.

China, Turkey and India were the sources of the largest volume of orders. Other important markets were South Korea, Indonesia, the USA, Brazil, Pakistan and Bangladesh. All in all Rieter further expanded its market position worldwide in the year under review and gained market share with attractive products. In China and India Rieter strengthened its market position with a specific offering for the local markets. This shows that Rieter positioned itself well and made the right investment decisions in earlier years.

Higher sales at both Business Groups
Due to the high level of orders in hand and increased output at Spun Yarn Systems, Rieter’s sales rose overall by 22% compared with the previous year, to 1 060.8 million CHF (+27% in local currencies). The Spun Yarn Systems Business Group posted a 28% increase in sales to 861.7 million CHF. Sales at the Premium Textile Components Business Group increased by 4% to 199.1 million CHF. In local currencies Spun Yarn Systems grew by 32%, Premium Textile Components by 11%.

Profit outlook for 2011 confirmed
Rieter achieved disproportionate growth in profitability in the 2011 financial year as a whole. The company expects to post an operating margin (EBIT) in the double-digit range for 2011.
Rieter’s final figures for 2011 and the annual report will be published on March 21, 2012, at the results press conference and presentation to analysts in Winterthur.
Annual General Meeting on April 18, 2012
The 2012 Annual General Meeting of Rieter Holding Ltd. will be held in the Eulach-Hallen in Winterthur on April 18. Any proposals regarding the agenda must be submitted in writing to Rieter Holding Ltd., Office of the Company Secretary, Klosterstrasse 32, CH-8406 Winterthur, Switzerland, by February 23, 2012, at the latest, including the relevant motions and evidence of the necessary shareholdings (par value of 0.5 million CHF as stipulated by Art. 699 of the Swiss Code of Obligations and §9 of the Articles of Association). Presentation to investors
You will find a presentation regarding orders received and sales in 2011 at www.rieter.com (Investor Relations >> Presentations) About Rieter
Rieter is a leading supplier on the world market for textile machinery and components used in short staple fiber spinning. Based in Winterthur (Switzerland), the company develops and manufactures systems, machinery and technology components used to convert natural and manmade fibers and their blends into yarns. Rieter is the only supplier worldwide to cover spinning preparation processes as well as all four final spinning processes currently established on the market. With 18 manufacturing locations in 9 countries, the company employs a global workforce of some 4 700, 28% of whom are based in Switzerland. Rieter is listed on the SIX Swiss Exchange under the ticker symbol RIEN. (www.rieter.com) For further information please contact:

Rieter Holding Ltd.
Investor Relations
Joris Gröflin
Chief Financial Officer
T +41 52 208 70 15
F +41 52 208 70 60
E-mail: investor@rieter.com

Rieter Management Ltd.
Media Relations
Barbara Rösch
Corporate Communications
T +41 52 208 70 32
F +41 52 208 70 60
E-mail: media@rieter.com

Bühler acquires manufacturing capacity from Rieter in the Czech Republic

Wed, 26 Oct 2011 07:00:00 +0200

Additional manufacturing flexibility for Rieter

The manufacturing operations earmarked for sale (employing a workforce of 315 at the end of 2010) are located in Zamberk and Ústí nad Orlicí, and are part of Rieter CZ, a wholly-owned subsidiary of the Rieter Group. As manufacturers of subassemblies, components and sheet metal parts they operate mainly as suppliers to Rieter. Business with third-party customers in different industrial sectors has been expanded progressively in recent years. Rieter also intends to employ these plants in future as suppliers for its textile machinery manufacturing activities. However, in light of the further expansion of its business in the major Asian markets Rieter foresees changes in the volume of purchases from its Czech facility.

Through the transfer of this business to a new industrial owner (Bühler), Rieter will gain additional flexibility in manufacturing and at the same time create optimal development prospects for the plants being sold. Rieter’s remaining activities at the Ústí nad Orlicí and Boskovice sites are not affected by this transaction.

Reinforcement of Bühler’s manufacturing capacity close to the market

Bühler will not only retain all Rieter employees, but also plans further investment in the Czech manufacturing site. In reinforcing its manufacturing capacity in Europe, and especially in eastern Europe, it is pursuing the principle of producing efficiently and cost-effectively, as close as possible to the market.

The acquisition in the Czech Republic will at the same time increase the group’s flexibility by enabling the targeted growth in output to be handled in-house, and will create scope to improve throughput times. As a result of Rieter’s ownership of these manufacturing facilities to date Bühler will benefit from their high quality standards, their know-how and their familiarity with Swiss corporate culture.

The transaction is expected to be completed in January 2012. The parties have agreed not to disclose the purchase price.

About Bühler

Bühler is a global leader in the field of process engineering, in particular production technologies and services for manufacturing foodstuffs and technical materials. Bühler has a presence in more than 140 countries and employs a workforce of some 7 800 worldwide. The group generated sales of CHF 1 907 million in the 2010 financial year.
Further information at www.buhlergroup.com.

About Rieter

Rieter is a leading supplier on the world market for textile machinery and components used in short staple fiber spinning. Based in Winterthur (Switzerland), the company develops and manufactures systems, machinery and technology components used to convert natural and manmade fibers and their blends into yarns. Rieter is the only supplier worldwide to cover spinning preparation processes as well as all four final spinning processes currently established on the market. With 18 manufacturing locations in 9 countries, the company employs a global workforce of some 4 700, approx. 26% of whom are based in Switzerland. Rieter is listed on the SIX Swiss Exchange under ticker symbol RIEN. For further information please contact:

Rieter Holding Ltd.
Investor Relations
Joris Gröflin
Chief Financial Officer
T +41 52 208 70 15
F +41 52 208 70 60

Rieter Management Ltd.
Media Relations
Barbara Rösch
Corporate Communications
T +41 52 208 70 32
F +41 52 208 70 60

Bühler Ltd.
Media Relations
Corina Atzli
Head Corporate Communications
T +41 71 955 11 11
F +41 71 955 33 79

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Pleasing trend of business at Rieter

Wed, 27 Jul 2011 07:00:00 +0200

The Rieter Group embarked on a historic change of course in the spring of 2011. Shareholders approved a proposal by the Board of Directors to separate the group and for its two divisions, engaged in the textile machinery and the automotive components supply business respectively, to continue in operation as independent, separately listed companies. Following the completion of this separation, Rieter has become an industrially focused supplier of machinery and components for short staple fiber spinning mills. It pursues the operating business of the former Rieter Textile Systems Division through two Business Groups, Spun Yarn Systems (machinery) and Premium Textile Components (components). With the publication of figures for the first half of 2011, Rieter is reporting for the first time in the context of this new structure.

Rieter recorded a pleasing trend of business in the first half of 2011, continuing the positive development reported in 2010. New orders received were again at a high level, totaling 671.3 million CHF; this represented a decline of 9% compared to the exceptionally high figure in the same period of the previous year, but is still above the long-term average. Sales increased by 66% to 537.8 million CHF. Expressed in local currencies the increase amounted to 73%. Rieter posted a disproportionately strong rise in the operating result before interest and taxes, which increased from 2.0 million CHF in the first half of 2010 to 70.6 million CHF. This corresponds to an operating margin of 12.8% of corporate output. Net profit also developed positively, rising from 7.5 million CHF to 91.0 million CHF, boosted by a net capital gain of 42.3 million CHF. Excluding capital gains, it amounted to 8.8% of corporate output. In the period under review Rieter intensified capital expenditure in the major Asian growth markets and pressed on with the development of products adapted to local needs in emerging markets. The markets for textile machinery and components continued to develop apace in the first half of 2011, especially in the first quarter. They leveled off slightly in the second quarter; expectations of a further decline in the price of cotton and consequently in yarn increased the pressure on spinning mills’ margins and liquidity. In this market environment Rieter’s intake of new orders remained at a high level due to its market-oriented products, totaling 671.3 million CHF in the first six months of 2011. This corresponds to a slight decrease of 9% compared to the exceptionally high level recorded in the same period of the previous year (738.6 million CHF). There was strong demand from customers for products of both Rieter’s business groups, Spun Yarn Systems and Premium Textile Components. Demand was also broad-based in regional terms. Rieter recorded the largest volume of orders in the Indian, Turkish and Chinese markets. High levels of orders were also secured in other Asian countries such as South Korea, Indonesia and Pakistan. Spinning mills in the USA, Brazil and Egypt also invested in staple fiber machinery and components from Rieter.

The high level of orders already in hand at the beginning of the year continued to grow on the back of healthy order intake in the first six months of 2011. This meant that Rieter’s production capacity was utilized to the limit, resulting in long delivery times in some cases. Sales of 537.8 million CHF were 66% higher than in the same period of the previous year. Corporate output also increased by 66% to 559.1 million CHF. Exchange rates – especially the strength of the Swiss franc – had a negative impact on new orders received by Rieter and on sales revenues to the tune of –4 and –7 percentage points, respectively, in the first half of 2011.

High capacity utilization and attractive products generating good margins resulted in a disproportionate increase in profitability relative to sales. Rieter posted an operating result before interest and taxes (EBIT) of 70.6 million CHF in the first half of 2011 (2.0 million CHF in the first half of 2010). This is equivalent to 12.8% of corporate output.

There was also a striking increase in net profit, which amounted to 91.0 million CHF (7.5 million CHF in the first half of 2010). Both the higher operating result and a net capital gain of 42.3 million CHF realized in the period under review contributed to this positive outcome. The capital gain arose from the reduction in the equity stake that Rieter holds in Lakshmi Machine Works Ltd. in India. Rieter announced this transaction on April 1, 2011. Excluding capital gains, net profit corresponded to 8.8% of corporate output. The financial result (–4.9 million CHF) consists mainly of interest paid on the bond issue.

As of June 30, 2011, Rieter employed a workforce of 4 725, compared with 4 064 on the same date in the previous year. The increase in personnel numbers was due largely to the expansion of facilities in the growth markets of India and China. Rieter also increased the number of temporary employees in order to satisfy the large volume of orders.

Separation of the Rieter Group completed

The separation of the Rieter Group into two independent companies focusing on the textile machinery and automotive components supply business respectively, which was announced on March 22, 2011, and approved by the Annual General Meeting held on April 13, has been completed as planned. The automotive component supply business has been listed as Autoneum Holding AG on the SIX Swiss Exchange since May 13, 2011. The former Rieter Automotive Systems Division features in this report as “discontinued operations” and appears as a separate item in the income statement. The impact arising from revaluations are included in this result and are non-recurring.

The focus on the textile machinery business enables Rieter to position itself more clearly and operate with greater strategic flexibility. Reporting in the context of the two segments – Spun Yarn Systems and Premium Textile Components – creates greater transparency and visibility for shareholders.

Sound balance sheet

Even after the spin-off of the Automotive Systems business as an independent company through the distribution of a special dividend, Rieter has a sound balance sheet with shareholders’ equity of 360.4 million CHF and an equity ratio of 32%. Rieter generated free cash flow of 63.3 million CHF despite a volume-related increase in net working capital and higher capital expenditure. Cash and cash equivalents of 417.9 million CHF and net liquidity of 149.8 million CHF continue to ensure strategic flexibility and the long-term financing of corporate development. The 250 million CHF fixed-rate bond which bondholders decided to leave in place on May 10, 2011, also contributes to this.

With its sound balance sheet Rieter is well placed to achieve further development of the business through internal and external growth.

Spun Yarn Systems Business Group

Through its Spun Yarn Systems Business Group, Rieter is the only supplier world-wide covering the spinning preparation processes and all four final spinning processes established on the market with its machinery and systems.

Spun Yarn Systems received new orders to the value of 552.7 million CHF in the period under review. This figure was 12% lower than a year earlier, but was still at an above-average level (625.1 million CHF in the first half of 2010). Demand for market-specific products developed by Rieter to meet the needs of the major Asian markets was an important factor here. Rieter competed successfully with local manufacturers, in particular with its G 32 ring spinning machine, R 923 semi-automatic rotor spinning machine and RSB-D 22 drawframe. Sales of 425.1 million CHF by Spun Yarn Systems were 88% above the figure recorded in the same period of the previous year (226.5 million CHF in the first half of 2010). While the business group posted an operating loss of 13.4 million CHF in the first half of 2010, the operating result before interest and taxes in the period under review rose to 49.6 million CHF. This is equivalent to 11.0% of corporate output (–5.5% in the first half of 2010). The positive trend in the operating margin was largely due to good capacity utilization and the ongoing improvement in product manufacturing costs.

Premium Textile Components Business Group

Through its Premium Textile Components Business Group, Rieter is one of the world’s largest suppliers of components for short staple spinning mills. Premium Textile Components supplies technology components both to spinning mills and to various machine manufacturers. This business is less exposed than the machinery business to the fluctuation in market cycles that are characteristic of the industry.

New orders received by Premium Textile Components increased by 6% to 118.6 million CHF in the first six months of 2011 (112.0 million CHF in the first half of 2010). Growing demand for high-quality yarns had a positive impact on sales of Premium Textile Components’ products. The business group’s sales revenues increased by 21% to 112.7 million CHF in the period under review (93.1 million CHF in the first half of 2010). Due largely to good capacity utilization, but also to further improvements in manufacturing processes, Premium Textile Components posted a disproportionately strong rise in the operating result before interest and taxes. This amounted to 21.9 million CHF (9.4 million CHF in the first half of 2010), corresponding to an operating margin of 14.6% of corporate output (8.8% in the first half of 2010).

Investment in the long-term development of the business

Both of Rieter’s business groups, Spun Yarn Systems and Premium Textile Components, worked intensively on innovations in the period under review. The goals of these efforts include facilitating the creation of novel types of yarn, achieving further improvements in the price/performance ratio of the products and thus meeting the needs of customers in the growth markets even more effectively. Both business groups will exhibit innovations in their product portfolios at the ITMA 2011 in Barcelona in September.

Rieter has also continued to expand its facilities in the major markets of India and China. Capital expenditure in the first half of 2011 totaled 14.4 million CHF, compared to 3.9 million CHF in the same period of the previous year. Rieter also launched projects to improve processes aimed at more efficient global networking of the business.

Outlook

Rieter expects the decrease in order intake to continue in the second half of the year compared to the first six months. Order intake for 2011 as a whole is unlikely to equal the previous year’s extraordinarily high total. Rieter foresees pressure on customers’ margins and liquidity persisting in the second half of 2011.

It is currently difficult to forecast whether the factors that are impacting the markets are short-lived or will continue for a prolonged period. Further developments depend on various factors, which include exchange rate developments, consumer sentiment in Europe and North America, growth in fiber consumption in Asia and raw material prices.

The high level of orders in hand secures capacity utilization and sales revenues in the current financial year and well into the coming year. Rieter will continue to pursue the expansion of facilities in Asia, product developments and process improvements in the second half of 2011.

Rieter expects a substantial increase in sales compared with the previous year
and double-digit operating margins for the year as a whole.

Semi-annual report and telephone conference

You will find the full text of the semiannual report and the relevant presentation at www.rieter.com. You can also register at www.rieter.com to receive our media releases regularly by e-mail.

Future dates

Publication of sales figures for the 2011 financial year: February 2, 2012
Results media conference and presentation for financial analysts on the 2011 annual financial statements: March 20, 2012
Annual General Meeting: April 18, 2012

Downloads

Press Release (English/PDF/45 KB) Press Release (German/PDF/50 KB) Presentation (in English only/PDF/800 KB) Semi-Annual Report 2011 (English/PDF/2.1 MB) Semi-Annual Report 2011 (German/PDF/2.1 MB)

For further details please refer to:

Rieter Holding AG
Investor Relations
Joris Gröflin
Chief Financial Officer
T +41 52 208 70 32
F +41 52 208 70 60
investor@rieter.com

Rieter Management AG
Media Relations
Barbara Rösch
Corporate Communications
T +41 52 208 70 32
F +41 52 208 72 73
media@rieter.com

About Rieter

Rieter, with registered offices in Winterthur, Switzerland, is a global market leader in spinning machinery and components, with the broadest offering worldwide. The company develops and manufactures machinery, components and systems for manufacturing yarns from natural and man-made fibers and combinations of the same. Rieter is the world’s only supplier of products and know-how covering not only pre-spinning processes but also all four final spinning processes established on the market. The company has 18 production plants in 9 countries and employs some 4700 people worldwide, of whom about 26% in Switzerland. Rieter is listed on the SIX Swiss Exchange (ticker symbol RIEN). www.rieter.com

Rieter’s first stock trading day after the separation of Automotive Systems

Fri, 13 May 2011 07:00:00 +0200

After approval by the Rieter Holding Ltd Annual General Meeting on April 13, 2011 of the Board proposal to split the Rieter Group, the two divisions Automotive Systems and Textile Systems became separate listed companies per May 13, 2011 with their own shareholders and managements. Their independent status and focus on their respective sectors will enhance the market opportunities and development possibilities of both businesses and enable greater transparency for investors. The former Textile Systems division continues with Rieter Holding as an independent company. Rieter Holding registered shares are traded as before on the SIX Swiss Exchange under the Rieter name (ticker symbol RIEN). For each Rieter Holding share held per reference date (May 12, 2011 after close of trading), Rieter shareholders received one Autoneum share in form of a special dividend. The new independent company Autoneum, a spin-off of the former Automotive Systems division, is listed as of May 13, 2011 on the SIX Swiss Exchange (ticker symbol AUTN).

Technological leadership and presence in growth markets

Rieter is a global market leader in short-staple spinning machinery and components, with the broadest offering worldwide, and the world’s only supplier of products and know-how covering all four final spinning processes. The company comprises two business groups: Spun Yarn Systems develops and manufactures machinery and systems for manufacturing yarns from natural and man-made fibers and combinations of the same. Premium Textile Components (PTC) offers technology components and related services under strong, globally established proprietary brand names, both for spinning mills and for third-party manufacturers. “Rieter is a strong long-standing brand name in the textile machinery market. After systematically expanding its traditional machinery business with technology components and services for short-staple spinning mills, Rieter is now a leading global supplier of related components”, says Executive Chairman Erwin Stoller. Rieter supplies technology components not only to spinning mills, but also to diverse machinery producers. This business is less prone than machinery manufacturing to the market cycles typical of the industry. Rieter has continuously strengthened its presence in the Asian growth markets in recent years to systematically build up market leadership and create sustainable value added for shareholders. The Rieter dividend policy depends on a number of different factors, taking account of which the company strives for a payout ratio of up to 30%.

Board of directors and management

As of May 13, 2011 Rieter Holding and Autoneum each have their own independent board of directors and management. The Rieter board of directors comprises Erwin Stoller (executive chairman), This E. Schneider (vice chairman, lead director and chairman of the nomination and compensation committee), Dieter Spälti, Jakob Baer (chairman of the audit committee), Michael Pieper, Hans-Peter Schwald and Peter Spuhler. The Rieter Group Executive Team comprises Erwin Stoller (executive chairman), Peter Gnägi (head of the business group Spun Yarn Systems), Werner Strasser (head of the business group Premium Textile Components), Joris Gröflin (CFO) and Thomas Anwander (general counsel). For further details please refer to:

Rieter Holding AG	Rieter Holding AG
Media Erwin Stoller Executive Chairman T +41 52 208 70 32 F +41 52 208 70 60 media@who-needs-spam.rieter.com www.rieter.com	Investors Joris Gröflin Chief Financial Officer T +41 52 208 70 32 F +41 52 208 70 60 investor@who-needs-spam.rieter.com www.rieter.com

Press Release (English/PDF/22KB)
Press Release (German/PDF/22KB)

Bondholders uphold outstanding bonds (CHF 250 million, 4 1/2%, 2010-2015)

Tue, 10 May 2011 11:00:00 +0200

Rieter and Credit Suisse as the bondholder representative held a bondholders’ meeting on May 10, 2011 to reach decision on the CHF 250 million Rieter bonds due April 30, 2015. This was in connection with resolution by the Rieter AGM on April 13 to distribute all shares of Autoneum Holding AG to existing shareholders in the form of a special dividend. Credit Suisse AG regards this resolution as entitling bondholders to declare the outstanding bonds due and repayable before maturity.

The bondholders’ meeting resolved, by absolute majority of votes represented, to fully uphold these bonds rather than declaring them due and repayable. Rieter’s strategic flexibility and long-term financing of corporate development is thus assured. Contact persons for further information:

Rieter Holding AG	Rieter Management AG
Investor Relations	Media Relations
Urs Leinhäuser Chief Financial Officer T +41 52 208 79 55 F +41 52 208 70 60 investor@who-needs-spam.rieter.com www.rieter.com	Peter Grädel Head Corporate Communications T +41 52 208 70 12 F +41 52 208 72 73 media@who-needs-spam.rieter.com www.rieter.com

Rieter Holding AG invites bondholders to meeting on May 10, 2011

Wed, 20 Apr 2011 07:30:00 +0200

Rieter's annual general meeting, held on April 13, 2011, resolved to split the Rieter Group into two separate, listed companies, Rieter and Autoneum. It further decided to distribute all the shares of Autoneum Holding AG to the existing shareholders, in the form of a special dividend. As bondholder representative, Credit Suisse AG believes that this fact entitles bondholders, under item 7(f) of the terms of the bonds, to declare the outstanding CHF 250,000,000 4.50% bonds due April 30, 2015, due and repayable. Rieter and Credit Suisse AG, as the bondholder representative, have therefore decided to convene a bondholders meeting on May 10, 2011. This will give bondholders the opportunity to decide on declaring all outstanding bonds due and repayable at their nominal value as per date of distribution of the special dividend (currently expected to be on May 13, 2011). As a meeting of creditors, the bondholders' meeting will resolve by absolute majority of votes represented, calculated by the nominal value of the voting capital represented at the meeting. Further details can be found in the invitation to the meeting of bondholders, published in the SHAB and in the bondholders' brochure. For further information, please refer to:

Rieter Holding AG Investor Relations	Rieter Managenement AG Media Relations
Urs Leinhäuser Chief Financial Officer T +41 52 208 79 55 F +41 52 208 70 60 investor@who-needs-spam.rieter.com www.rieter.com	Peter Grädel Head Corporate Communications T +41 52 208 70 12 F +41 52 208 72 73 media@who-needs-spam.rieter.com www.rieter.com

Press release (English/PDF/17KB) This press release constitutes neither an offer to buy nor a solicitation to make an offer to buy securities in the United States of America or in a jurisdiction in which such offer or solicitation would not be permissible, nor to a person in respect of whom such offer or solicitation would not be permissible. The securities have not been registered in accordance with the provisions of the securities laws of the USA and cannot be offered or sold in the USA.
This press release is not for publication or distribution in the United States of America.

Rieter shareholders approve all Board proposals at the Annual General Meeting and agree to a split of the Rieter Group

Wed, 13 Apr 2011 20:00:00 +0200

The 120^th Annual General Meeting of Rieter Holding Ltd was attended by 813 shareholders representing 51% of share capital. They approved all Board proposals, the Annual Report with the annual accounts and consolidated financial statements for 2010, formal discharge of the Board of Directors and Group management team members for the business year 2010, and change of company purpose required in connection with the Group split. Consultative approval of the Compensation Report was confirmed by some 90% of those present. Shareholders furthermore voted Erwin Stoller to the Rieter Board of Directors for another 3-year term of office. Board Chairman Erwin Stoller opened the meeting by pointing out its historical importance: shareholders were asked to approve a split of the Rieter Group by separating the textile machinery and automotive supply businesses into independent listed companies. 99% of shareholders present approved this proposal, which included payment of a special dividend to Rieter Holding Ltd shareholders in the form of registered shares in Autoneum Holding Ltd. After approval, Erwin Stoller told shareholders: “You have just set one of the most important milestones in Rieter’s history. Now our automotive supply business will be listed on the stock exchange under the name of Autoneum Holding Ltd, most likely as of May 13, 2011, and make its own way forward. I am convinced that both our automotive supply and textile machinery businesses are well positioned for a successful independent future”. Rieter Holding Ltd, an independent company listed on the SIX Swiss Exchange, will continue the existing business of Rieter’s Textile Systems division, focusing thereby on its traditional business of spinning machinery and technology components. Contact persons for further information:

Rieter Holding AG	Rieter Management AG
Investor Relations	Media Relations
Urs Leinhäuser Chief Financial Officer T +41 52 208 79 55 F +41 52 208 70 60 investor@who-needs-spam.rieter.com www.rieter.com	Peter Grädel Head Corporate Communications T +41 52 208 70 12 F +41 52 208 72 73 media@who-needs-spam.rieter.com www.rieter.com

Press release (English/PDF/35KB)