Despite an exceptionally high order backlog and sustained strong demand, Rieter faced supply chain bottlenecks, repercussions of the COVID lockdown in China and significant increases in material and transportation costs in the first half of 2022. The company’s costs also increased due to its takeover of the automatic winding business as of April 1, 2022.

Rieter expects sales to rise significantly in the first half of 2022 compared to the prior-year period. It anticipates a loss at the EBIT and net result level in the first half of 2022.

Rieter is implementing several 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 normalizes, 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