Rieter: Challenging First Half of 2022 Despite Exceptionally High Order Backlog
Ad-hoc announcement pursuant to Art. 53 LR
- Exceptionally high order backlog and sustained strong demand
- Supply chain bottlenecks, COVID lockdown in China and significant cost increases
- Takeover of winding machine business leads to additional costs
- Sales and earnings adversely impacted in first half-year
- Considerably improved market position
Despite an exceptionally high order backlog and sustained strong demand, Rieter’s business situation in the first half of 2022 is characterized by the well-known supply chain bottlenecks, the repercussions of the COVID lockdown in China and the significant increases in material and transportation costs.
Further costs are added in connection with the takeover of the automatic winding business as of April 1, 2022.
These factors are adversely impacting both sales and earnings.
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 is working intensively on the implementation of measures to minimize 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 normalized, 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.
- Semi-Annual Report 2022: July 19, 2022
- Investor Update 2022: October 21, 2022
- Publication of Sales 2022: January 25, 2023
- Deadline for Proposals Regarding the Agenda of the Annual General Meeting: February 17, 2023
- Results Press Conference 2023: March 9, 2023
- Annual General Meeting 2023: April 20, 2023
- Semi-Annual Report 2023: July 20, 2023
- Investor Update 2023: October 20, 2023
Rieter is the world’s leading supplier of systems for short-staple fiber spinning. Based in Winterthur (Switzerland), the company develops and manufactures machinery, systems and components used to convert natural and manmade fibers and their blends into yarns. Rieter is the only supplier worldwide to cover both spinning preparation processes and all four end spinning processes currently established on the market. Furthermore, Rieter is a leader in the field of precision winding machines. With 17 manufacturing locations in ten countries, the company employs a global workforce of some 4 900, about 18% of whom are based in Switzerland. Rieter is listed on the SIX Swiss Exchange under ticker symbol RIEN. www.rieter.com
All statements in this report which do not refer to historical facts are forecasts 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. All figures are unaudited.