Order Intake Continued to Recover in the Fourth Quarter of 2020
• Order intake increased to CHF 215.1 million in the fourth quarter of 2020
and reached a total of CHF 640.2 million in the 2020 financial year
• As expected, sales of CHF 573.0 million in the 2020 financial year were
significantly down on the previous year
• EBIT margin of around -15% and net profit of around -16% of sales
• First half of 2021 still heavily impacted by the COVID-19 pandemic
• Change to the Group Executive Committee
Rieter posted a globally and broadly supported order intake of CHF 215.1 million in
the fourth quarter of 2020. Thus, the recovery that began in the third quarter of 2020
after the slump in demand in the second quarter continued (order intake second
quarter: CHF 45.7 million, third quarter: CHF 174.4 million). Overall, Rieter’s annual
order intake for the 2020 financial year totaled CHF 640.2 million, which corresponds
to a decrease of 31% compared to the previous year.
At the end of 2020, the company had an order backlog of about CHF 560 million
(December 31, 2019: about CHF 500 million).
As expected, as a consequence of the economic effects of the COVID-19 pandemic,
the Rieter Group closed the 2020 financial year with considerably lower sales than in
the previous year. According to the first, as yet unaudited figures, total sales of CHF
573.0 million were achieved, which corresponds to a decrease of 25% compared to
the previous year (2019: CHF 760.0 million).
Rieter will publish the full annual financial statements and the 2020 Annual Report on
March 9, 2021.
Order Intake by Business Group
All three business groups were affected by the slump in demand in the second
quarter of 2020 due to the COVID-19 pandemic. Despite the recovery in order
intake in the third and fourth quarters of 2020, the weak second quarter was only
The Business Group Machines & Systems was particularly hard hit by the effects of
the pandemic, with a year-on-year decline of 35%. The Business Groups
Components and After Sales each recorded a 24% reduction in order intake.
Sales by Business Group
The exceptional market situation in 2020 gave rise to a significant decline in sales in
all three business groups. Accordingly, reluctance to invest and deferred deliveries
by customers caused sales in the Business Group Machines & Systems to decline by
24% compared to the previous year.
Due to COVID-19, a large number of spinning mills stopped production worldwide.
This led to low demand for spare parts and wear parts, especially in the second and
third quarters of 2020. Accordingly, compared to the previous year, sales in the
Business Groups Components and After Sales fell by 24% and 27% respectively in
the 2020 financial year.
Sales by Region
With the exception of Turkey, all regions were affected by the low demand as a
consequence of the COVID-19 pandemic. In Turkey, thanks to the innovative range
of products and services, Rieter benefited from customers’ willingness to invest in
the year under review, increasing sales by 83% to CHF 122.0 million.
EBIT Margin and Net Profit
In the 2020 financial year, Rieter anticipates an EBIT margin of around -15% (2019:
11.2%) and net profit of around -16% of sales (2019: 6.9%). As of December 31,
2020, Rieter had liquid funds of exceeding CHF 280 million and unused credit lines in
the mid three-digit million range.
First Half of 2021 Still Heavily Impacted by the COVID-19 Pandemic
Thanks to the improved capacity utilization, Rieter is planning short-time working in
only a few areas in the first half of 2021. Nevertheless, Rieter expects sales in the
first half of 2021 to be below the break-even point.
Rieter will issue an outlook for the 2021 financial year at the Results Press
Conference on March 9, 2021.
Change to the Group Executive Committee
With effect from March 1, 2021, the Board of Directors of Rieter Holding Ltd. has
appointed Roger Albrecht as Head of the Business Group Machines & Systems and
a member of the Group Executive Committee.
Roger Albrecht is 38 years old and a Swiss citizen. He has a degree in Business Economics (FH) and a master’s degree in Accounting and Finance from the University of St. Gallen. Roger Albrecht has been employed at Hilti Group in Liechtenstein and Canada from 2008 to 2015. In 2015 he was appointed to the position of Business Group Controller in the Business Group Components at Rieter, and since 2017 has been Managing Director of Spindelfabrik Suessen GmbH in Süssen (Germany).
Roger Albrecht will take over the position from Carsten Liske, who has carried out
this function since January 1, 2019, and has been a member of the Executive
Committee since 2015. The Board of Directors thanks Carsten Liske for his many
years of successful work and his great contribution to the further development of
Rieter and wishes him every success and all the best for the future, both
professionally and personally.
Annual General Meeting April 15, 2021
The 2021 Annual General Meeting of Rieter Holding Ltd. will take place in Winterthur
on April 15, 2021. Proposals regarding the agenda must be submitted in writing,
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 (OR) and Article 9 of the Articles of Association), by no later than February 19, 2021, to Rieter Holding Ltd., Office of the Company Secretary, Klosterstrasse 32, CH-8406 Winterthur, Switzerland.
Telephone Conference for Media and Investors
The telephone conference for media and investors will take place today, January 27,
2021, at 09.00 am (CET).
Europe +41 58 310 50 00
UK +44 207 107 06 13
USA +1 631 570 56 13
China +86 400 120 23 19
India +91 446 688 60 46
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 16 manufacturing locations in ten countries, the company employs a global
workforce of some 4 420, about 21% of whom are based in Switzerland. Rieter is
listed on the SIX Swiss Exchange under ticker symbol RIEN. www.rieter.com
- In-Depth AnalysisDecember 16, 2021Cotton Yarn/Fabric Market Report – 16th December, 2021
- Industry And ClusterDecember 16, 2021CITI Elects New Office-Bearers for the year 2021-22
- News & InsightsDecember 16, 2021Global Smart Textiles Market Estimated to be Valued at US$ 6.6 Billion by 2026 | MarketsandMarkets™ Study
- ArticlesDecember 16, 2021Can Waste Wool Replace Bubble Wrap?