Rieter aims to enhance operational efficiency and profitability through its strategic initiatives, including a performance program and asset sales, amid a challenging market backdrop.

Target Information

Rieter, a leading global provider of systems for spinning preparation, has reported a significant increase in its sales, reaching CHF 758.2 million in the first half of 2023, a 22.2% rise compared to the same period last year. Despite facing challenges due to the earthquake in Türkiye, which led to some delivery cancellations, Rieter has managed to post a profit at the EBIT level of CHF 25.2 million, a remarkable recovery from the loss of CHF -10.2 million recorded in the first half of 2022.

The company also achieved a net profit of CHF 13.3 million in the first half of 2023, contrasting sharply with a loss of CHF -25.2 million during the same timeframe in the previous year. Additionally, Rieter's order backlog stood strong at around CHF 1.1 billion as of June 30, 2023, indicating robust future revenue potential despite current market fluctuations.

Industry Overview in Switzerland

Switzerland's economy, particularly in the machinery sector, has been grappling with a cyclical downturn that has affected demand across various segments. The global supply chain disruptions and the escala