Home / Knowledge / News / Textiles / Lenzing Group: Outstanding second quarter 2011
Lenzing Group: Outstanding second quarter 2011
24
Aug '11
The Lenzing Group can once again report record results, and looks back at the most successful first half-year in the company's history. Following a very good first quarter 2011, sales and earnings could be significantly surpassed again in the second quarter of 2011. Thus Lenzing has set its guidance for the entire year 2011 at the upper end of the initial guidance announced in the first quarter, thus forecasting an EBITDA of EUR 470 mill. to EUR 500 mill. and consolidated sales between EUR 2.1 bill. and EUR 2.2 bill.

In the first half of 2011, consolidated sales rose by 31.0%, from EUR 821.4 mill. to EUR 1,076.2 mill. The reasons underlying the revenue increase were mainly considerably higher fiber prices compared to the prior-year level, as well as the higher fiber shipment volumes and the consolidation effects from the acquisition of the Biocel Paskov pulp plant.

Earnings before interest, tax, depreciation and amortization (EBITDA) in the first six months of 2011 rose by 65.1% to the new record level of EUR 247.8 mill. This resulted in an all-time high EBITDA margin of 23.0% (H1 2010: 18.3%). Operating profit (EBIT) was almost doubled, rising by 84.5% to EUR 199.2 mill. (compared to the already excellent EBIT of EUR 108.0 mill. achieved in the first half of 2010). This corresponds to an EBIT margin of 18.5% (H1 2010: 13.1%).

Outstanding second quarter 2011

The second quarter of 2011 featured consolidated sales of EUR 544.1 mill. and an EBITDA of EUR 132.9 mill. (margin of 24.4%), an outstanding performance which comprises the best quarterly results in the company's history. The EBIT of EUR 108.5 mill. (margin of 19.9%) also represents a new all-time high for Lenzing.

“Our global growth strategy together with our intensified specialization in high value fibers such as Lenzing Modal and TENCEL, for which we have a unique position on the market, has really paid off”, says Lenzing Chief Executive Officer Peter Untersperger, commenting on the Group's business development. In any case, the long-term positive development in the form of excess demand for cellulose fibers (“cellulose gap“) will continue and will not be seriously impeded by the latest decline in cotton prices to a realistic price level again, CEO Untersperger adds.
Positive development of all segments

In the core business segment of the Lenzing Group, Segment Fibers, Lenzing was able to carry out several selling price increases in the first half-year, most recently for its specialty fibers, against the backdrop of the full utilization of its production capacities. These price hikes more than compensated for the expected price consolidation for standard viscose fibers for the Asian textile industry which took place in the second quarter. Thus Lenzing's average fiber prices for textile applications in the second quarter of 2011 were higher than in the first quarter. Volume demand for textile fibers remained strong throughout the entire half-year.

Must ReadView All

Courtesy: AWI

Textiles | On 20th Jan 2017

Australian wool EMI at highest ever level in Au$ terms

The Eastern Market Indicator (EMI) managed to forge ahead by a...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Apparel/Garments | On 20th Jan 2017

Fashion etailer Fynd to offer Yepme product offerings

Online fashion retailer Fynd has signed a partnership with Yepme,...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search