Shareholders at 120th Annual General Meeting of Rieter Holding Ltd approved all proposals by the Board of Directors, also including a split of the Rieter Group by separating the Textile Systems and Automotive Systems divisions into independent listed companies. They furthermore voted Erwin Stoller to the Board of Directors for another 3-year term of office.
The 120th Annual General Meeting of Rieter Holding Ltd was attended by 813 shareholders representing 51% of share capital. They approved all Board proposals, the Annual Report with the annual accounts and consolidated financial statements for 2010, formal discharge of the Board of Directors and Group management team members for the business year 2010, and change of company purpose required in connection with the Group split. Consultative approval of the Compensation Report was confirmed by some 90% of those present. Shareholders furthermore voted Erwin Stoller to the Rieter Board of Directors for another 3-year term of office.
Board Chairman Erwin Stoller opened the meeting by pointing out its historical importance: shareholders were asked to approve a split of the Rieter Group by separating the textile machinery and automotive supply businesses into independent listed companies. 99% of shareholders present approved this proposal, which included payment of a special dividend to Rieter Holding Ltd shareholders in the form of registered shares in Autoneum Holding Ltd.
The recovery in the textile machinery and automotive markets that had started in the second half of 2009 continued in 2010. Despite the usual seasonal effects at Automotive Systems in the second six months, demand over the course of the year as a whole was at a considerably higher level than in the previous year.
Orders received by the Rieter Group in the 2010 financial year totaled 3’170.0 million CHF. Compared to the previous year’s figure, this corresponded to an increase of 64% (1’935.1 million CHFin 2009). The trend in order intake was dynamic throughout the year. The steep rise compared with the previous year was due primarily to very strong demand at Textile Systems.The 32% increase in sales by the Rieter Group was less than the growth in orders received due to the low order volume in the previous year. Sales were slightly higher in the second half of the year than in the first six months and totaled 2’585.8 million CHF (1’956.3 million CHF in 2009). Exchange rate trends adversely affected both key figures, especially in the second half. In local currency terms, orders received and sales increased by 68% and 36%, respectively, in the year under review. Based on exchange rates prevailing in 2007, consolidated sales would currently already be 2.9 billion CHF again.
Rieter Textile Systems:
almost three-fold increase in orders received
The world market for spinning machinery and components recorded a strong recovery with a broad regional base in the year under review, following two years of conspicuously weak demand. The main markets for Rieter were China, India and Turkey. There was also a large volume of demand from Bangladesh, Brazil, Indonesia, Pakistan, South Korea, and also the USA. The upswing was driven by investment demand for replacements and expansion as well as strong growth in textile consumption in the major Asian markets. Rieter Textile Systems successfully exploited the positive trend due to its strong market position, increasingly also in machinery and technology components which are adapted to local needs in emerging markets.
As a leading supplier to the textile machinery and automotive markets, Rieter successfully exploited the improved market environment in the first half of 2010 to generate organic growth. Compared with the same period of the previous year, Rieter’s order intake increased by 92% to 1'615.3 million CHF (840.0 million CHF in 2009) and sales grew by 34% to 1'201.3 million CHF (899.8 million CHF in 2009).
The Rieter Group and both divisions returned to profit at the operating level. The Rieter Group achieved an operating result before interest and taxes (EBIT) of 14.6 million CHF in the first six months. Rieter will reach the announced turnaround and expects to reaffirm the positive half-year operating result for the 2010 financial year as a whole. Furthermore, Rieter already aspires to a positive net result for the current year.
Rieter’s markets revived significantly again in the first half of 2010, thus continuing the trend recorded in the second half of 2009. As a leading supplier to the textile and automotive industries, Rieter exploited this market recovery, which was especially pronounced in the textile machinery sector, to generate growth in all regions.
The ongoing restructuring programs, which will for the most part be completed at the end of 2010, continued to be implemented in the first six months. They have made a significant contribution to the improvement in results. At the same time Rieter pressed on with important projects for the further expansion of capacity in both divisions in Asia and the development of market-specific products manufactured locally.
In the context of restructuring measures and the strategy of focusing on the core business, the sale of the nonwovens activities announced in the fourth quarter of 2009 and the disposal of automotive design and engineering firm Idea Institute were completed on March 9 and June 30, 2010, respectively.
Orders received at the Rieter Group rose by 92% to 1'615.3 million CHF (840.0 million CHF in 2009). This was mainly attributable to striking growth at Textile Systems, where orders increased four-fold, and orders were also 35% higher at Automotive Systems. Adjusted for exchange rate fluctuations the increase for the group as a whole amounted to 94%. There covery in the markets, which gained momentum in the course of the period under review, affected all regions.
Group sales rose by 34% to 1'201.3 million CHF (899.8 million CHF in 2009). Expressed in local currencies, the increase amounted to 35%. This growth was equally attributable to the improved trend of business at both Textile Systems and Automotive Systems.
