ZURICH, Dec 8 (Reuters) - Swiss auto parts and textile company Rieter Holding AG said full-year sales and profits will be well below forecasts because the economic crisis had a severe effect on textile and auto markets.

www.Rieter.com

The company said there are no signs of recovery at its textile systems division, where it expects orders received and sales for 2008 to decline by 65 percent and 30 percent, respectively.

Rieter sees full-year sales in automotive systems falling more than 15 percent because of the global collapse in demand for cars and trucks. The company will have worldwide redundancies and will reduce working hours at many European and North American sites to cut costs at both divisions.

The restructuring programme will cost around 250 million Swiss francs ($207.8 million) and Rieter will take additional impairment charges on goodwill amounting to about 100 million francs.

Rieter expects consolidated sales in 2008 to be more than 20 percent lower than the previous year and operating profits to be significantly reduced.

The company will release its 2008 sales on Jan. 30, 2009 and will hold a press conference on its results on March 24, 2009.

Rieter said it could not make forecasts for 2009 because of unsettled markets. ($1=1.203 Swiss Franc)

(Reporting by Jason Rhodes; Editing by Sharon Lindores)