Rieter Business report FY2009

Business Highlights

Financial Overview

(in CHF million)
  FY2009 FY2008 Rate
of change(%)
Sales 1,956.3 3,142.5 (37.7) -
EBIT (186.6) (312.1) -
Sales 1,424.3 2,022.1 (29.6) 1)
EBIT (105.1) (251.0) -

Automotive division
-The automotive industry in the Company's Automotive Systems' main markets, Europe and North America, has been experiencing a severe slump in vehicle output since autumn 2008. This trend continued to define the division's business performance in 2009. Sales revenues were 30% lower than in 2008 (26% lower in local currencies). The decline was especially pronounced in the first half of 2009; slightly improved market conditions had a positive impact on the trend of business at the Company in the second six months. The actions that were initiated in 2008 and continued to be implemented in 2009 to adjust structures to the changes in the market environment and the additional cost cutting enabled Automotive Systems in the second half of the year to significantly reduce losses at the operating level.


-In 2009 the Automotive Systems division secured orders from vehicle manufacturers, primarily for underbody modules and acoustic systems for the passenger compartment.


R&D Expenditure

(in CHF million)
  FY2009 FY2008 FY2007
Overall 98.7 122.3 141.1

R&D Structure

-The Company operates nine acoustics laboratories as well as a central research center in Winterthur for acoustic and thermal management as well as the respective products and materials.

Product development

-One of the advantages of Rieter Ultra Silent is being recyclable. In contrast to existing products with similar properties, it contains no glass fibers. The material that is very light and heat-resistant satisfies requirements in automotive engineering and can be used in various parts of the vehicles, which has been developed by the Company's both divisions, Textile and Automotive Systems.

Investment Activities

Capital Expenditure

(in CHF million)
  FY2009 FY2008 FY2007
Overall 61.7 140.9 203.5
Automotive Systems 56.2 85.3 112.4


Capital Expenditure by Region

(in CHF million)
  FY2009 FY2008 FY2007
Europe 30.8 85.4 128.6
Asia 13.2 34.3 34.4
North America 15.7 16.9 37.3
Latin America 1.8 4.2 3.1
Africa 0.2 0.1 0.1
Total 61.7 140.9 203.5

Investments Outside Germany

-The Company is following major customers in pursuing new projects, especially in emerging markets in the Asia region. In China the Automotive division already has three manufacturing facilities and a development center with an acoustic laboratory. In India a second plant was built in 2009, and together with its long-term partner Nittoku this will supply Asian manufacturers in the country. It is located in the Chennai region and will commence volume production in spring 2010. The first components for customer projects have been delivered in volume on schedule from the new plant in Daegu (Korea). The Automotive Systems has also reinforced manufacturing operations in Eastern Europe, especially at its locations in the Czech Republic and Poland.