Annual Report 2009 - Rieter

10 Rieter-Konzern Rieter Group . Annual . Geschäftsbericht Report 2009 2009 . Rieter . Abschnitt Textile Systems
Divisional chief
executive
Peter Gnägi
Orders received
510.8 (539.5)
million CHF
Sales
532.0 (1 120.4 )
million CHF
Operating result before
interest and taxes
– 73.6 (– 49.5)
million CHF
Number of employees
at year-end
4 086 (4 741)
Capital expenditure
of tangible fixed
assets
5.5 (53.2)
million CHF
Products
Components, machines
and systems for producing
yarns from natural
and man-made
fibers and their blends.
(Previous year’s figures are in
brackets.)
Rieter Textile Systems:
Market revival in the second half of the year
Following the steep downturn that had already been
the dominant feature of the global market for textile
machinery in the previous year, demand continued
to weaken further in 2009. The level of new orders
received by Rieter Textile Systems declined by 5%
(3% in local currencies) in the year under review as
a whole, increased however in the second half of the
year by almost 70%. The slight recovery starting in
the second quarter of 2009 continued until yearend.
Sales revenues were significantly lower due to
the slump in order intake in the previous year and
at the beginning of 2009; the decline in the year
under review amounted to 53%. Implementation of
the program initiated in 2008 to adjust structures
to market trends and capacities to sales volume continued
in 2009 at a faster pace. The Textile Division
thus succeeded in substantially reducing losses in
the second half of the year. In 2009 Rieter Textile
Systems focused on expanding its presence in the
large Asian markets and on innovations mainly designed
to meet the specific needs of this region.
In December 2009 Rieter signed a contract to sell
Rieter Perfojet in France to the Austrian Andritz
Group. Rieter Textile Systems will thus now concentrate
its efforts on the promising core business with
staple fiber machinery and the related technology
components and service offerings.
Adjustments to the prevailing market
environment
The world market for textile machinery, which had
already been weakening since the fourth quarter of
2007, suffered a massive slump as of March 2008,
and this bottomed out in the first quarter of 2009.
There were structural and cyclical reasons for this
In 2009 Rieter Textile Systems focused consistently on
expanding its presence in the large Asian markets and
on innovations designed to meet the specific needs of
this region.
downturn. On the one hand it marked the end of an
investment boom to expand spinning capacity that
had been fueled additionally in many markets by
government stimulus programs. At the same time
the consequences of the economic and financial crisis
further reinforced the downswing. These resulted
in a decline in textile consumption in the US and
Europe and high yarn inventories in spinning mills
worldwide. The rather better performance of the
domestic markets in the major textile countries of
China and India was insufficient to offset this trend.
Rieter Textile Systems had initiated a program of realignment
to the new market conditions at an early
stage in 2008. This continued to be implemented in
the year under review and was stepped up. In order
to minimize the impact of the cyclical decline in volume
on profit performance, Textile Systems worked
intensively on action to cut costs and enhance productivity.
Personnel-related measures, such as the
utilization of flexible working-time models, shorttime
working and reductions in workforce numbers
were prepared and implemented in close cooperation
with employee representatives. The restructuring
programs were on track at the end of 2009 and
the cost savings budgeted for that point in time had
been achieved. Alongside this, Textile Systems realigned
its organization with the structural changes
in the industry. The division combined the structures
and functions of sites in order to lower the
breakeven point substantially. Textile Systems is
aiming for better customer proximity, greater cost
efficiency and shorter decision-making lines with
a new, leaner organization. These efforts have resulted
in a further reduction in the workforce affecting
all levels.
Innovations for long-term development
of the business
Rieter Textile Systems worked purposefully on the
further development of its product range in 2009 in
order to maintain its good market position and
be well-placed to benefit from the next upswing although
projects were reviewed and prioritized in
light of the adverse market conditions. Rieter aims
to help customers gain a competitive edge with novel
types of yarn and also through higher productivity
of their installations, optimum utilization of raw
material and energy efficiency.