The market environment in the reporting period was characterized by restrained investment in new machinery in almost all regions except China. Demand for consumables, wear & tear and spare parts weakened slightly due to the low spinning mill capacity utilization. The noticeable downturn in consumer sentiment had a further dampening effect throughout the entire textile value chain.
Despite this challenging market environment, the Rieter Group recorded a gratifying order intake of CHF 629.8 million in the first nine months of 2024 (2023: CHF 452.2 million) in all market regions. In the third quarter of 2024, orders increased by 78% year-on-year to CHF 226.4 million (2023: CHF 127.2 million). This means that the order intake has increased for the third quarter in a row.
Sales
Rieter’s cumulative sales in the first nine months of 2024 amounted to CHF 584.3 million (2023: CHF 1 092.9 million), a decrease of 47% compared to the prior-year period. Sales in the third quarter of 2024 were CHF 163.3 million (Q3 2023: CHF 334.7 million).
The Business Group Machines & Systems generated total sales of CHF 264.1 million in the first nine months of 2024 (-65% compared to the same period of the previous year). The Business Group Components posted sales of CHF 184.5 million, 11% lower than in the corresponding period of the previous year, while the Business Group After Sales recorded a slight decline of -1% to CHF 135.7 million in the first nine months of 2024.
Order backlog
As of September 30, 2024, Rieter has an order backlog of around CHF 690 million (September 30, 2023: CHF 900 million).
“Next Level” performance program
The transfer of resources and responsibilities to India and China to enable the key markets to respond in a more agile way to customer needs and cycles in the machinery business is on track. The planned cost savings were achieved. Rieter continues to consistently implement the action plan to increase profitability.
Outlook for the full year 2024
Due to the overall geopolitical situation and the general deterioration in consumer sentiment, the market recovery is proving to be more restrained than previously forecast. The first signs of a recovery in the financial year 2024 have emerged in the key markets of China and India.
For the full year 2024, Rieter now anticipates sales in the range of CHF 900 million and an EBIT margin remaining at 2% to 4%.
