Rieter’s Orders Up 39%, Sales Down 47% in Q3 2024

Rieter Group has released its financial results for the third quarter and the first nine months of 2024, revealing a mixed performance in a difficult market environment.

Key Financial Highlights:

• Order Intake: CHF 226.4 million in Q3, totaling CHF 629.8 million for the first nine months, a substantial increase from CHF 452.2 million in the same period last year.
• Sales: CHF 163.3 million in Q3, with cumulative sales of CHF 584.3 million for the first nine months, reflecting a 47% decline compared to CHF 1,092.9 million in the prior year.
• Order Backlog: Approximately CHF 690 million as of September 30, 2024, down from CHF 900 million a year earlier.

Performance by Business Group:

• Machines & Systems: Total sales of CHF 264.1 million, down 65% year-on-year.
• Components: Sales of CHF 184.5 million, an 11% decrease from the previous year.
• After Sales: Slight decline of 1% to CHF 135.7 million.

Order Intake by Business Group:

• Machines & Systems: Order intake increased by 133% to CHF 347.1 million.
• Components: Order intake decreased by 11% to CHF 164.1 million.
• After Sales: Slight decrease of 1% to CHF 118.6 million.

The reporting period saw restrained investment in new machinery across most regions, except China. Demand for consumables, wear and tear, and spare parts declined slightly due to low spinning mill capacity utilization, further impacted by a downturn in consumer sentiment throughout the textile value chain.

Rieter’s initiative to transfer resources and responsibilities to India and China is progressing, aimed at enhancing agility in responding to customer needs. The planned cost savings have been achieved as the company implements its action plan to improve profitability.

Rieter anticipates full-year sales in the range of CHF 900 million, with an EBIT margin of 2% to 4%. The company notes that market recovery is slower than previously forecast due to geopolitical tensions and declining consumer sentiment, although initial signs of recovery are emerging in China and India.