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New record fiber shipment volume in Q2 – Lenzing
22
Aug '12
The Lenzing Group performed very well in the first half of 2012 against the backdrop of a difficult market environment. The ambitious business targets were fully achieved. However, as expected, the record levels generated in the first half of 2011 were not reached again. Due to the changed market expectation the guidance for the full year 2012 has been adapted. 

Consolidated sales at EUR 1,061.8 mn in the first half of 2012 remained stable for the most part (H1 2011: EUR 1,076.2 mn, a drop of 1.3%). In spite of lower average fiber selling prices, Lenzing succeeded in maintaining a constant level of sales due to the increased fiber shipment volumes made possible by the recent capacity expansion measures. 

“We managed to successfully counteract the weak market conditions throughout the entire first half of 2012. Demand for Lenzing fibers continued unabatedly and all our fiber and pulp production plants were operating at full capacity. We even managed to achieve a new record in the first half-year with a fiber shipment volume of 390,000 tons“, says Peter Untersperger, Chief Executive Officer of Lenzing. 
 
In any case, Lenzing remains firmly committed to its long-term objectives, and will invest approximately EUR 1.6 bn by 2015 in order to expand fiber production capacity to about 1.2 mn tons per year. “We think in the long-term and anticyclically,” Lenzing CEO Peter Untersperger states. Amongst other projects, construction work began in June 2012 on the first TENCEL production facility at the Lenzing site within the framework of this expansion program. The new plant also represents the world’s largest TENCEL production line to date. 
 
Investments in intangible assets and property, plant and equipment totaled EUR 130.0 mn in the first half of 2012, compared to EUR 82.1 mn in the prior-year period. The investment focus was on construction of the fifth fiber production line at the Indonesian subsidiary PT. South Pacific Viscose (SPV), the expansion of TENCEL production capacities in the USA, the remodeling and expansion of the Paskov pulp plant and as well as infrastructure investments at the Lenzing site. 
 
Adjusted equity1 climbed by 4.6% to EUR 1,096.6 mn (December 31, 2011: EUR 1,048.1 mn). Net financial debt amounted to EUR 268.0 mn in the middle of 2012 (December 31, 2011: EUR 159.1 mn). In particular, the distribution of the dividend to shareholders of Lenzing AG (EUR 66.4 mn) and a tax prepayment (EUR 42.5 mn) in Austria were responsible for the higher net financial debt. 
 
“We were able to finance the investments in the first half-year on our own. With a net gearing below 25% and flexibility on the basis of the available liquidity of EUR 600 mn, we are in a position of carrying out our investments as planned, even under difficult market conditions”, says Lenzing’s Chief Financial Officer Thomas G. Winkler in commenting on the current half-year results. 

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