Rieter Textile Systems: massive decline in orders received

August 18, 2008 (Switzerland)

The Rieter Group reported a considerably weaker trend of business in the first half of 2008 than in the very strong equivalent period of the previous year.

The pronounced slowdown in the Asian textile machinery markets, the decline in vehicle production in North America and the massive increases in the cost of raw materials, energy and transportation had a negative impact on orders received, sales and profits in the first six months.

Rieter could not escape the effects of the cyclical downturn in the textile machinery and automotive markets, which is expected to affect the global economy in general.

However, Rieter was able to maintain its strong market position by virtue of its strong brand, good products, global presence and committed workforce.

Mainly as a consequence of the steep decline in demand at the Textile Systems Division, orders received by the group were 32 % lower at 1559.3 million CHF.

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