Lenzing 2013 sales fall 8.7%

21 Mar '14

2 min read

The business development of the Lenzing Group in 2013 was characterized by the continuation of good volume demand, new record shipment volumes and full capacity utilization against the backdrop of extremely weak fiber selling prices.

Highlights:

-Ongoing good volume demand, new record sales volumes

-Unsatisfactory earnings situation due to very weak fiber selling prices

-Initial effects of cost optimization measures already have a positive impact in H1 2014

Lenzing has moved to counteract this situation on the basis of a comprehensive cost optimization program, a marketing offensive for specialty fibers, adjustments made to the business strategy in order to minimize risk and an optimized organizational structure in the Group.

Consolidated sales in the 2013 financial year fell by 8.7% from EUR 2.09 bn to EUR 1.91 bn, which can be attributed to the drop in fiber selling prices, which declined by 13% year-on-year to EUR 1.70 per kilogram, as well as the divestment of the Business Unit Plastics. Moreover, there was a loss of external sales totaling EUR 61.8 mn as a consequence of the complete conversion of the Paskov pulp plant in 2013 from paper to dissolving pulp which is used within the Lenzing Group

Consolidated earnings before interest, taxes, depreciation on property, plant and equipment and amortization (EBITDA) totaled EUR 225.4 mn, down from the adjusted figure of EUR 352.4 mn in 2012) but in line with the most recently published guidance for the year.

The EBITDA margin amounted to 11.8%, compared to the adjusted level of 16.9% in the previous year. Consolidated earnings before interest and taxes (EBIT) amounted to EUR 86.4 mn in the 2013 financial year, compared to the prior-year level of EUR 231.5 mn (adjusted). The EBIT margin was 4.5%, down from the adjusted figure of 11.1% in 2012.

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