Rieter Reports Record 2006 Earnings

The Switzerland-based Rieter Group reported the combined sales of its Textile Systems and Automotive Systems divisions rose by 15 percent in 2006 to a record 3,579.9 million Swiss francs (US$2,950 million). Operating result before interest and taxes and excluding special charges increased by 31 percent to 256.3 million Swiss francs (US$211.1 million); and net profit rose by 14 percent to 157.4 Swiss francs (US$129.7 million), equal to 4.6 percent of corporate output. As a result, the company's Board of Directors is proposing a dividend increase of 50 percent to 15 Swiss francs (US$12.36) per share for 2006.

Rieter Textile Systems saw positive momentum through the year in all staple fiber activities, with particularly strong demand in Asian countries including most notably India, Turkey and China. Although the division lost about 48.5 million Swiss francs (US$40 million) as a result of the divestment of its man-made fiber operations during the year, it realized an overall increase in orders of 46 percent to 1,724.3 million Swiss francs (US$1,421.1 million) and in sales of 29 percent to 1,400.7 million Swiss francs (US$1,154.3 million). The operating result for the year rose by 84 percent to 148.2 million Swiss francs (US$122.1 million), equal to 11.1 percent of corporate output. Earnings before interest and taxes totaled 92.7 million Swiss francs (US$76.4 million).

Editor's note: Currency conversions are based on a rate of 1 Swiss franc equals US$0.8241.

April 3, 2007