(Adds detail, shares, analyst comment)
ZURICH, March 30 (Reuters) - Swiss textile machinery and car components maker Rieter on Tuesday reported a forecast-beating 38.4 percent jump in 2003 net profit and gave an upbeat outlook for the current year.
The firm said net income rose to 116 million Swiss francs ($90.8 million), boosted by an improvement in financial income.
Operating profit inched up to 202.4 million francs, compared with 200.9 million a year earlier, as a good performance at its textile systems division offset weakness in its automative supply business.
A slight decline in Rieter's operating margin to 6.8 percent from seven percent in 2002 was partly due to pricing pressure in the automotive industry, the firm said.
Shares, which have gained some 14 percent this year, were unchanged at 327 Swiss francs in early trade.
Rieter said it expected further improvements in operating profit, helped by measures to improve productivity and cut costs. It forecast 2004 sales to rise slightly at constant exchange rates.
"The introduced cost saving program as well as higher productivity will help Rieter to deliver good numbers in 2004," the equities sales team at AKB said in a note.
Analysts polled by Reuters had on average called for a net profit of 96.2 million and an operating profit of 200.3.
The firm, which recommended an unchanged dividend of 8.60 francs per share, said last month 2003 sales rose 4.7 percent to 3.12 billion, while orders fell 1.2 percent to 2.97 billion.
For further information, visit the company's website on: www.rieter.ch