Consolidated sales of the Lenzing Group were down slightly from the previous year, declining by 2.3% to EUR 2.09 bn compared to EUR 2.14 bn in 2011. The decline is due to the fact that more dissolving wood pulp from the Paskov pulp plant was used internally than in 2011. Adjusted for this consolidation effect, consolidated sales remained constant. The significant lower average fiber selling prices compared to the boom year 2011 could be compensated by the strong rise in fiber sales volumes, which climbed by close to 14% year-on-year, from 712,000 tons to 810,000 tons.
Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) amounted to EUR 358.7 mn1, a decline of 25.3% from the record EBITDA of EUR 480.3 mn achieved in 2011, but above the comparable level of EUR 330.6 mn generated in the year 2010. The EBITDA margin amounted to 17.2% (2011: 22.4%). Earnings before interest and tax (EBIT) of the Lenzing Group amounted to EUR 255.0 mn in the 2012 financial year, comprising a decline of 29.9% from the prior year level of EUR 364.0 mn. The EBIT margin was 12.2% (17.0% in the record year 2011).
“We performed quite well in 2012 despite a very difficult market environment”, says Lenzing’s Chief Executive Officer Peter Untersperger. “Naturally, our operating margins were below those in the boom year 2011 but still at a good level. We fully utilized our new production capacities, and were sold out throughout the entire year. This success proves the long-term correctness of our growth strategy in our core business of manufacturing man-made cellulose fibers”, CEO Untersperger adds.
The one-off decommissioning costs for European Precursor (EPG), the joint venture with SGL Carbon and Kelheim Fibres, amounted to EUR 23.5 mn (2011: EUR 0). Accordingly, consolidated EBITDA after restructuring amounted to EUR 352.4 mn, corresponding to an EBITDA margin after restructuring costs of 16.9% of sales.
Record investment program
CAPEX (investments in property, plant and equipment, intangible assets and non-controlling interest) rose to the record level of EUR 346.2 mn in the 2012 financial year (2011: EUR 196.3 mn). Lenzing’s investment activity focused on the completion of the fifth production line at the Indonesian subsidiary PT.
South Pacific Viscose (SPV), the debottlenecking program at the plant in Nanjing (China), the capacity expansion drive at the TENCEL factory in Mobile/Alabama (USA), expansion investments at the Lenzing site as well as the commencement of construction of the new large-scale TENCEL plant in Lenzing. These investments were complemented by the further remodeling and upgrading of the Paskov plant (Czech Republic) and the acquisition of the remaining shares.
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