Expanded and modernised manufacturing capacity enabled Rieter to process orders promptly and post a 17% increase in sales in the second half of the year compared with the first six months.
Rieter recorded a pleasing trend in business in the 2013 financial year. The improvement in its market position enabled the company to post significant growth in both order intake and sales. Order intake of 1259.4 million CHF was 50 per cent higher. Sales totalled 1035.3 million CHF, equivalent to an increase of 17 per cent. Rieter had a backlog of orders in hand of some 765 million CHF at the end of 2013. This will ensure a high capacity utilisation until well into 2014. Rieter will publish its full annual financial statements and annual report for 2013 on March 18, 2014.
After a subdued start to the year, the market for short-staple fibre machinery and components gained momentum in the course of 2013. Spinning mills margins continued to develop favourably, and this stimulated customers willingness to invest. This positive trend was broad-based in regional terms and apparent in a large number of national markets. Following a strong initial six months, demand stabilised in the second half of the year, but remained at a pleasingly high level.
The positive trend in order intake and sales in 2013 underlines that Rieter is on the right track with the innovation and expansion strategy it has been implementing since 2012. Demand for the companys offering, expanded by major product launches, has been very good in both our traditional and new markets. Rieter has further developed its already strong market position with the implementation of the large-scale investment programme in 2012/2013 aimed at further growth and focusing on expansion in Asia, innovation and process improvements.
In the year under review, new orders received by Rieter increased by 50 per cent to 1259.4 million CHF. After developing especially vigorously in the first half of 2013, order intake slowed slightly in the second six months, but still remained above the long-term average. This trend was especially true in Turkey, where demand had been particularly strong with the support of government development schemes. Rieter booked substantial new orders in China, especially in the first six months, due to the further expansion of its local presence. However, investments by Chinese spinning mills waned toward year-end due to large raw material inventories and growing difficulties with financing investment projects.
Healthy demand for Rieter products nevertheless continued throughout the year in a number of Asian countries such as Pakistan, Uzbekistan, South Korea, Bangladesh, Indonesia and Vietnam. Spinning mills in the US are renewing capacity as the industry benefits from a competitive cost structure. Business here developed briskly in the second half in particular, and Rieter secured substantial orders for rotor spinning machines.
Orders received in India rose in the second half, albeit still at a modest level. Rieter posted an increase in order intake at both Business Groups, with the striking momentum in the first six months being attributable especially to orders for complete installations from Spun Yarn Systems. Compared to 2012, Spun Yarn Systems (the machinery business) posted a 56 per cent increase in new orders to 1084.3 million CHF. At Premium Textile Components (the components business) order intake increased by 21 per cent in 2013 to 175.1 million CHF. Rieter had a backlog of orders in hand of some 765 million CHF at the end of 2013, which will ensure high utilisation until well into 2014 (compared to some 550 million CHF on December 31, 2012).
The sales trend at Rieter in 2013 was also very good. The figure of 1035.3 million CHF was 17 per cent higher than a year earlier. All regions re