From Automotive News Europe
Zurich - Rieter Holding ceo Hartmut Reuter said he does not expect the company to become a takeover target following its profit warning late last night, and subsequent plunge on the Swiss Market on Tuesday.
"We had expected a negative share market reaction," Reuter said in a preview of an interview with Swiss finance newspaper HandelsZeitung to be published tomorrow.
He also said Rieter would continue to watch further developments.
Rieter's share price moved sharply lower on Tuesday after the Swiss engineering group issued a profit warning the day before, saying it expects a significant decline in sales and a fall in operating margins for the full year.
At 4.45 p.m., Rieter shares were down CHf 28.50 or 7.2 percent at CHf 364.75, while the Swiss Market Index was down 97.62 points at 6318.14. The company cited unfavourable trends in the market for textile machinery.
There are also signs of a more severe downturn in vehicle production in Rieter's main markets, Rieter said.
During the first four months of the 2008 business year, Rieter's Automotive Systems posted a 4 percent sales drop, while new orders at its other division, Rieter Textile Systems, more than halved.
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