WINTERTHUR, Switzerland — May 25, 2022 — 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: 400.5 million Swiss francs ($417.3 million)). Rieter anticipates a loss at the EBIT and net result level in the first half of 2022 (first half of 2021: EBIT 9.0 million Swiss francs ($9.4 million), net result: 5.3 million Swiss francs ($5.5 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.
Posted: May 25, 2022
Source: Rieter
