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Rieter offset losses in the textile machinery sector with the activity of robust components and spare parts. Austerity efforts are intensified
The textile machinery manufacturer of Winterthur Rieter has made sales of nearly a quarter to first semester (see table). Sales in Uzbekistan, Bangladesh, Vietnam and Indonesia more than offset losses in China (-1%) and India (-36%). But the margins have gone back further. In its core business, the production of spinning machines, the operating loss has almost quadrupled from year to year. Jan Siebert, who joined Rieter in April 2016 and has since headed the division, leaves the company at the end of September. Chief Executive Officer Norbert Klapper is scheduled to re-act. Thanks to SSM in the component business, acquired by Schweiter for a net amount of CHF 100 million a year ago, order intake increased by 3% in the first half. The spare parts business is also solid in terms of margins. Rieter accelerated the current innovation program to return to the target EBIT margin of 10%. In addition, following the planned transfer of production from Germany to the Czech Republic, additional austerity measures are sought. Shares of Rieter lost more than 10% Tuesday
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