ZURICH, Aug 23 (Reuters) - Swiss textile machinery and car components maker Rieter said on Friday first-half net profit fell 39 percent to 40.5 million Swiss francs ($26.96 million), but new orders rose two percent to 1.60 billion.
The company reiterated in a statement it expected that full-year 2002 sales and operating profit would not quite match 2001's levels. But the firm added sales in the second half should rise from the first-half level of 1.44 billion, which was down 11 percent year on year.
Operating profit fell 20 percent to 87.9 million.
Equity analysts had expected net profit of around 39 million, operating profit of 77 million and sales of 1.44 billion.
In April, Rieter forecast 2002 sales and operating profit at below 2001's levels, although orders for textile machines had improved in the second quarter on the back of replacement demand as compared to the first quarter.
In 2001, Rieter had sales of 3.17 billion francs, operating profit of 203.9 million and net profit of 111.2 million.
It made no comment on the future of a roughly 20 percent stake in Rieter held by the BZ Group of Swiss financier Martin Ebner, making the group the largest single shareholder.
Sharp stock market falls have forced maverick investor Ebner into a fire sale of large chunks of BZ's investment funds and with markets still shaky, it is feared that the group might offload individual equity stakes still held, including shares in Rieter.
Last month, Ebner, facing a cash drain, had to cede control of his publicly traded funds, to regional bank Zuercher Kantonalbank (ZKB), one of its creditors. The funds were built around billions of francs worth of equity stakes in top Swiss firms.
Rieter shares have advanced from year lows hit last week but are still down some 14 percent in the year to date.
($1=1.502 Swiss Franc)