Swiss automotive systems and textile equipment producer Rieter, reported a 0.2% rise in net profit to CHF138.1m ($US105.7m).
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According to Reuters, analysts had been expected a decline.
Consolidated sales were down slightly at CHF3,160m (from 3,172m a year earlier).
Rieter Automotive Systems increased sales by 2.9% to CHF2,036.7m CHF and reported higher operating earnings and margins in 2005 (CHF111.4m or 5.6% of corporate output).
This positive development was attributed to successful products, cost-cutting measures and improved productivity. Higher raw material costs and pricing pressure from the car manufacturers inhibited further progress in profitability.
Rieter also said it is increasing its holding in the Spanish automotive component supplier Rieter Saifa to 100% with retroactive effect as of January 1, 2006.
In a statement the company said full acquisition of the company will enable Rieter to exploit growth opportunities in Europe’s third-largest automobile market more effectively.
