Home / Knowledge / News / Textiles / Sales volume at Lenzing sets new record in 2012
Sales volume at Lenzing sets new record in 2012
Mar '13
In spite of difficult market conditions in its core fiber business, the Lenzing Group succeeded in achieving the second-best business result in its history in the 2012 financial year. This can be attributed to new record fiber sales volumes and the good performance of Lenzing’s specialty fiber TENCEL.

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.

Must ReadView All

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

(left to right) Rohit Munjal, Ashok  Shah, Rahul Mehta, Premal Udani, Rajesh Masand and Jayesh  Shah

Textiles | On 28th Jun 2017

CMAI to host 822 exhibitors at 65th National Garment Fair

The Clothing Manufacturers Association of India (CMAI) will host over ...

Interviews View All

Cindy McNaull

We have broad range of options in durable fabrics

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
July 2017

July 2017

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


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search