Winterthur, Switzerland -- Automotive acoustics supplier Rieter Group has reported sales up 34 percent to CHF 1201 million ($1140 million) for the first six months of 2010 (H1), compared to the first half of 2009. Orders received rose 92 percent to CHF 1615 million over the same periods, a recent company statement said.
This growth, Rieter said, was equally attributable to improved business at its Textile Systems and Automotive Systems units.
In Rieter's automotive business, sales increased 35 percent to CHF 876 million in H1, compared to the same period last year. Operating profit rose by CHF96 million to CHF 18.5 million during the same periods.
Automobile production increased to 37.6 million vehicles in H1, compared with 26.1 million in H1 2009. The highest growth rates in H1 were reported in North America at 73 percent higher than the first half of 2009. Output increased by 46 percent in China and was up by 25 percent in Europe, the statement said.
Rieter's automotive business commenced production in a new plant in southern India in the first half of the year. This is the second manufacturing facility in the region, "which has great growth potential," Rieter said.
The same is true of China, the company added, where Rieter Automotive operates a development and acoustics centre in addition to several manufacturing plants in order to serve both Chinese and foreign manufacturers even more effectively.
Rieter said it will continue the "progressive expansion of its production capacity in these growth markets," and "will also seize opportunities for further profitable growth in Europe and North America."
Rieter expects a substantial increase in sales in 2010 compared to 2009, with contributions from both business divisions. In the second half of 2010, the textiles business will see a further strong increase in sales compared with the first six months due to the good order situation, whilst automotive sales are expected to be lower in the second half-year compared with the period under review due to normal seasonal factors as well as currency effects, the statement said.
Rieter expects both divisions to post another positive operating result in the second half of 2010 and operating margins at group level to continue their improvement. "Rieter will achieve the announced turnaround and expects to reaffirm the positive half-year operating result for 2010 as a whole," the company said. (RD)