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Rieter’s net profit down 14 per cent

In 2016, Rieter’s net profit fell 14 per cent as sales decreased nine per cent. EBIT margin was six per cent. Rieter supplies systems for short-staple fiber spinning. In the full year, order intake rose 13 per cent year-on-year. In the first half of 2016, orders were at a good level, mainly driven by solid demand from Turkey. In the second half of the year, the dynamism in Turkey and India slowed significantly due to increasing political uncertainties, with the result that orders declined.

Sales in China increased 33 per cent and in India it rose 28 per cent. In other Asian countries, sales declined 12 per cent but remained at a good level. In North and South America, following the completion of deliveries of large orders in the previous year, sales declined. In Turkey, a large portion of good order intake from the first half year was delivered on schedule by the end of the year. Despite this, sales in Turkey fell by 17 per cent compared to the previous year.

Despite low visibility in the sales markets, Rieter expects sales and profitability for 2017 to be at the level of the previous year (before restructuring costs).