Showing posts with label rieter. Show all posts
Showing posts with label rieter. Show all posts

June 3, 2012

Rieter’s Shares Are Falling due to Bad Sales

Shares of Rieter, a Swiss manufacturer of textile machines, fell drastically after it got known that orders for machinery from Germany declined for a sixth month in April 2012.

Rieter dropped as much as 7.3 percent. The decline pushed the stock down 3.7 percent this year. Competitor OC Oerlikon Corp declined 2.3 percent.

Orders for German machinery, adjusted for inflation, fell 11 percent from a year earlier in April, according to data from the Frankfurt-based VDMA industry association. Domestic sales contracts dropped 14 percent, while export orders declined 9 percent. Germany is the largest national export market for Switzerland’s machinery industry.

Source: Bloomberg

March 25, 2012

Rieter, a Swiss Textile Machinery Manufacturer, to Double its Workforce in China

Rieter Holding AG, a Swiss textile machinery manufacturer, will double its workforce in China to reach 1,800 employees until 2013 within its expansion plan in Asia, to expand in Asia.

Other than increasing its workforce in China, the company also intends to grow the number of its employees in India to reach the number of 2,000 by 2013.

These plans were voiced in an interview with Mr. Stoller, the manufacturer’s chairman, at a conference in Winterthur, Switzerland, earlier in March, 2012.

As per Bloomberg, the company got about a third of its 2011 sales from China and India. Rieter said earnings before interest and tax rose to $123 million last year. The stock fell as much as 11 percent.

Rieter must manufacture textile machinery in India and China. Otherwise, the company will face undercuts by competitors in those countries since local manufacturing helps save on import taxes.

Rieter also mentioned that the expansion plans will not impact the personnel in Switzerland.

The company had 4,695 employees at the end of December, 2011.

Source: Bloomberg