The Rieter Group has revised its expectations downward for the current financial year in light of the fact that the markets for textile machinery in particular are developing less favorably than previously expected. There are also signs of a more severe downturn in vehicle production in Rieter's main markets. Based on current exchange rates, Rieter now foresees a significant decline in sales and a decrease in operating margins. Rieter Textile Systems posted record figures for orders received, sales and operating earnings in 2007. However, demand has been weakening since the fourth quarter of 2007, and suffered a steep decline in March and April 2008. The main reason for this downturn is the currently subdued business outlook for Asian spinning mills.
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