Based on order backlog of approximately CHF 490 million, an improved cost base and the signs of market recovery mentioned above, Rieter expects a stronger second half of 2020 compared to the first half of the year in terms of sales and profitability. The Rieter Group received building permit for its CAMPUS project in June 2020. The project involves building of a new customer and technology center and an administration building on an area of 30 000 sq m at the current site in Winterthur.

Order intake for the Rieter Group in its Business Group Machines & Systems in the first half of 2020 declined by 34 per cent. Its order intake in the Business Group Components also declined 34 per cent while that in the Business Group After sales declined 32 per cent. The group’s order backlog as of June 30, 2020, was around CHF 490 million

The group’s sales declined by 39 per cent to CHF 254.9 million compared to the previous year period. Machines & Systems sales decreased 46 per cent. This was due to the low order intake in the first three quarters of the previous year and deferred deliveries. Sales at Components fell by 29 per cent and at After Sales by 34 per cent.

Rieter noted signs of a market recovery in June 2020. At the end of June 2020, its proportion of producing spinning mills improved to 80 per cent from 40 per cent in April 2020.