Winterthur, Switzerland - Rieter Group posted a 50 percent rise in net profit of SwFr82.1 million ($65.81 million) in the first half of this year, boosted by strong sales in its textiles division.
The Swiss company reported a 16 percent growth in first-half sales to SwFr1771.6 million, compared to SwFr1525.6 million in the same period last year.
Rieter supplies systems and machinery for the manufacture of textiles, yarns, automotive noise control and thermal insulation, as well as interior trim and underfloor systems.
In their joint statement to shareholders, Rieter chairman Kurt Feller and chief executive Hartmut Reuter said the company has successfully continued its expansion in Asia and eastern Europe and took advantage of the subsequent cost benefits.
"Rieter will exploit growth opportunities in the emerging Asian and eastern European markets and systematically undertake the structural adjustments this necessitates. Due mainly to the very good order situation at textile systems [division], Rieter expects significant sales growth and a further improvement in operating profitability in the 2006 financial year," the statement said.
Sales for six months at Rieter's textile systems unit rose by 30 percent to SwFr651.7 million while orders surged by 91 percent to SwFr974.2 million.
Earnings before interest and taxes (EBIT) at the division more than doubled to SwFr62 million, compared to SwFr30.1 million the same period last year.
Rieter's automotive systems unit posted a 9 percent rise in sales to SwFr1119.9 million and a 12 percent increase in EBIT to SwFr59 million.
The company expected an increase in yearly sales at the division, compared to last year.