2024-01-24 06:29:07
Zurich (awp) – The textile machinery manufacturer Rieter suffered a decline in its revenues last year, as well as a drying up of demand for its products, according to a report released on Wednesday. Profitability must nevertheless have clearly recovered, to largely meet management’s new ambitions in this area.
The operating margin before tax, interest, depreciation and amortization (Ebit) will have risen to the top of the targeted range of 5 to 7% formulated last October, compared to 2.1% in 2022, according to estimates still preliminary.
Turnover fell by 6.1% to 1.42 billion Swiss francs, when new orders were cut by more than half to 542 million.
The results are below the least optimistic projections made by analysts consulted by AWP. New orders were expected to represent at least 623 million Swiss francs, when revenues were not expected to fall below 1.47 billion.
The main source of revenue, the Machines and Systems unit saw its contribution to sales erode by 5%, when demand evaporated by three quarters to 663.9 million Swiss francs. Revenues and orders for components also declined. Only following-sales service showed growth.
Without going into the field of quantified prospects for the moment, the Winterthur industrialist insists on the persistence of cyclical and geopolitical headwinds, weighing on an already anemic demand, but also sees signs of recovery. A new short-term roadmap should be established by the presentation of detailed 2023 results on March 13.
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