#Spinning

2019-01-31

Rieter' s first information on the Financial Year 2018

The Rieter Group achieved an order intake of CHF 868.8 million in the 2018 financial year, 17% down on the previous year period (2017: CHF 1 051.5 million). At CHF 1 075.2 million, total sales were 11% higher than the previous year (2017: CHF 965.6 million). Net liquidity increased to CHF 150.3 million (December 31, 2017: CHF 130.5 million). The full annual financial statements and the 2018 Annual Report will be published by Rieter on March 13, 2019.

Weak market environment leads to decline in order intake of 17%
Sales increase by 11% to CHF 1 075 million
Order backlog on December 31, 2018, of CHF 325 million
EBIT margin of around 4% and net profit of around 3% of sales expected
Net liquidity increases to CHF 150 million
Kurt Ledermann new Chief Financial Officer of Rieter Group

New Rieter CFO Kurt Ledermann (c) 2019 Rieter

Order Intake by Business Group

The Business Group Machines & Systems posted an order intake of CHF 468.3 million, a reduction of 30% compared to the previous year. Demand in the new machinery business was characterized by uncertainties in Asia and Turkey as well as the tense financing situation for emerging market customers. Both factors had a negative impact on the investment sentiment in the spinning industry. This was especially evident in the fourth quarter of 2018, which with an order intake of CHF 34.9 million was very weak in all regions.

In the Business Group Components, order intake was CHF 260.1 million, around 14% above the previous year (excluding acquisition -6%). Due to weaker macro-economic conditions, order intake in the fourth quarter of 2018 amounted to CHF 55.0 million which was lower than in the previous quarters. This decline can be attributed to a low propensity for investments by customers.

With an order intake of CHF 140.4 million, the Business Group After Sales recorded a year-on-year decline of 9%. Order intake of CHF 29.1 million in the fourth quarter of 2018 was lower than in the previous quarters. This is due in particular to the lower order intake for installation services for new Rieter machines.

Sales by Business Group

Group sales in 2018 amounted to CHF 1 075.2 million (2017: CHF 965.6 million), an increase of 11% over the previous year. Rieter achieved increased sales thanks to organic growth in the Business Group Machines & Systems. In addition, the acquisition of SSM Textile Machinery in the Business Group Components supported this positive development. The Business Groups After Sales and Components were able to maintain the previous year’s levels of sales despite weaker market dynamics during the second semester of 2018.

Regions

In the Asian countries (excluding China, India and Turkey), Rieter increased sales in the reporting year by 36% to CHF 433.9 million, of which Uzbekistan contributed CHF 144.1 million. In 2018, sales in China fell by 19% to CHF 148.6 million. With the phasing out of the subsidy program in the western province of Xinjiang, the demand for machinery declined. Sales in India fell by 16% to CHF 146.2 million. In Turkey, Rieter achieved sales of CHF 154.8 million (+55%) in a difficult market environment, thanks to the introduction of the new ring and compact spinning machines. Sales in North and South America amounted to CHF 108.6 million (-5%). In the Europe region, Rieter increased sales by 3% to CHF 47.3 million. Sales in the Africa region amounted to CHF 35.8 million (+29%).

At the end of 2018, Rieter’s order backlog amounted to about CHF 325 million (December 31, 2017: about CHF 540 million). Due to the development of the business as described above, Rieter is planning capacity adjustment and cost reduction measures.

Kurt Ledermann new Chief Financial Officer of Rieter Group

The Board of Directors of Rieter Holding Ltd. has appointed Kurt Ledermann to the Group Executive Committee of Rieter Group as Chief Financial Officer, effective June 1, 2019.

Kurt Ledermann started his career with SIKA AG in the area of finances after having graduated from ETH Zurich with a degree in electrical engineering and from St. Gallen University with a degree in business administration. He has been working at Schaffner Holding AG in Luterbach (Switzerland) as Chief Financial Officer since 2008. Kurt Ledermann was born in 1968 and is a Swiss citizen.

Annual General Meeting of April 4, 2019

The 2019 Annual General Meeting of Rieter Holding Ltd. will take place on April 4 at the Eulach-Hallen in Winterthur, Switzerland. Any proposals regarding the agenda are to be submitted in writing to Rieter Holding Ltd., Office of the Company Secretary, Klosterstrasse 32, CH-8406 Winterthur, Switzerland by February 22, 2019 at the latest, accompanied by information concerning the relevant motions and evidence of the necessary shareholdings (with a par value of CHF 0.5 million as stipulated by Article 699 of the Swiss Code of Obligations and §9 of the Articles of Association).

Forthcoming Dates

Deadline for proposals regarding the agenda of the Annual General Meeting:

February 22, 2019

Results press conference 2019: March 13, 2019

Annual General Meeting 2019: April 4, 2019

Semi-Annual Report 2019: July 18, 2019

Rieter at ITM 2026: Spinning Redefined with Automation and Intelligence

Spinning mills need solutions that deliver stability, efficiency and future-proof performance. Rieter has put together a powerful portfolio for ITM 2026 in Istanbul, Türkiye. These innovations give customers the tools to enhance cost efficiency, improve responsiveness and actively develop their competitive edge. Step-by-step, Rieter is moving closer to its Vision 2027 – the fully automated spinning mill. With each new technology, Rieter enables spinning mills worldwide to operate with greater precision and reliability, ensuring they remain at the forefront of an increasingly demanding global market.

Rieter Annual General Meeting 2026: Shareholders approve all board proposals

At the Annual General Meeting of Rieter Holding Ltd. held on April 16, 2026, 342 shareholders representing 64.0% of the share capital approved all motions proposed by the Board of Directors. The shareholders adopted the Annual Report as well as the Financial Statements and Consolidated Financial Statements for 2025. They also granted discharge to the members of the Board of Directors and the Group Executive Committee for their activities in the reporting year. In an advisory vote, the 2025 Report on Non-Financial Matters was also approved.

Rieter advances strategic repositioning amid market volatility

Rieter successfully completed the acquisition of Barmag on February 2, 2026, and reached an important milestone in the company’s repositioning. Barmag will be integrated into the Rieter Group as the “Man-Made Fiber” Division. With this strategically transformative acquisition, Rieter is expanding its core business beyond the short-staple fiber business in a targeted way. This positions Rieter as the global market leader along the entire value chain for natural and man-made fibers. In addition, as a complete systems supplier, Rieter is further strengthening its technological leadership in the areas of automation and digitization.

Rieter responds to higher raw material prices

Global political and economic developments have been leading to rising raw material and energy costs for some time. The textile machinery industry is also affected by this trend. Rieter machines and components consist to a large extent of steel, copper, aluminum and electronics. These materials in particular have seen higher demand and higher prices in recent months.

Uster FiberQ excels for recycled raw materials too

Uster FiberQ is a complete solution for raw material utilization, supporting spinners to achieve consistent quality and profitability every day, building further growth for the future. The Turkish company ORTA relies on FiberQ with recycled yarn for its denim production. Data-driven knowledge puts the producer in control of raw material utilization – ready to make the correct decisions for process efficiency, quality and productivity.

EVENEXT & BURSTMATIC II to headline Mesdan S.p.A. presentation at ITM 2026

MESDAN S.p.A. will once again participate in ITM 2026, Turkey’s most important textile trade fair. The Italy-based leading manufacturer of yarn joining solutions and textile testing equipment,will be exhibiting at the booth of their local agent for the spinning, SARTEKS MAKINA at Hall 7, Stand 701A.

BB Engineering unveils new, patented “Val-uePack” spin pack at ITM

At the upcoming ITM in Istanbul, taking place June 9–13 at the Tüyap Fair Convention and Congress Center in Hall 7, Booth 702B, BB Engineering will once again be represented at a joint booth with its parent company, Barmag, and its representative, Tekstil Servis. The German machine manufacturer will show-case its expertise in man-made fiber and recycling technology, presenting its entire product portfolio, which includes compo-nents such as extruders and filters, as well as complete sys-tems for spinning synthetic fibers, air-texturing, and PET recy-cling.

Intertextile Shanghai Home Textiles unveils Trends 2027 alongside new lifestyle zone and product expansion

Intertextile Shanghai Home Textiles – Autumn Edition 2026 will spotlight forward-looking design directions and evolving consumer demand, as the global home and lifestyle market continues to adapt to sustainability priorities, emotional well-being, and diversified living spaces. Taking place from 18 – 20 August 2026 at the National Exhibition and Convention Center (Shanghai), the fair will present its latest trend theme, ‘BREATHE UP!’, developed in collaboration with leading international trend forecaster NellyRodi™ Agency, alongside expanded product categories, and the debut of the Home Textiles Lifestyle Zone.

Itema to showcase weaving excellence at ITM 2026

From June 9 to 13, Itema will exhibit at ITM 2026 in Istanbul (Hall 8 – Stand 806D), unveiling a distinctive exhibition concept designed to highlight the Company’s expertise across the entire weaving value chain. For this year’s edition, Itema will introduce an innovative stand experience built around two core areas: advanced weaving and spare parts solutions and an immersive textile gallery featuring fabrics produced by Itema Customers worldwide.