Home / Knowledge / News / Textiles / Lenzing Group reports 6.2% hike in 9M sales
Lenzing Group reports 6.2% hike in 9M sales
14
Nov '14
Consolidated sales at speciality viscose fibre and pulp producer and Austria based Lenzing Group slipped 6.2 per cent year on year to €1,357.7 million in the first three quarters of 2014.

“More than half of the sales drop is due to the non-recurring effects relating to the disposal of the plastics business unit towards the end of the second quarter of 2013,” Lenzing informed.

According to Lenzing, consolidated sales were only down by 2.8 per cent in a like-for-like comparison from continuing operations.

“The considerably lower average fibre selling prices in relation to the prior-year period could almost be fully offset by increasing fibre production and sales volumes as well as improving the product mix,” it added.

Average fibre selling prices stood at €1.55/kg at Lenzing in the first nine months of 2014, a drop of 10.4 per cent from €1.73/kg in the first three quarters of 2013.

Lenzing posted a new record in fibre sales volume of 706,900 tons in the reporting quarter, up 7 per cent against 660,000 tons, from a year ago period.

“This is all the more remarkable given the fact that all industrial plants in the greater Nanjing area of China, including Lenzing, were forced to reduce production due to the Nanjing 2014 Youth Olympic Games,” it said.

Fibre sales in the first three quarters of 2014 totalled €1,285.4 million, down 3.1 per cent from €1,326.5 million generated in the same period of 2013.

EBITDA from continuing operations in the first nine months of the year declined 16 per cent year on year to €159.8 million, which corresponds to an EBITDA margin of 11.8 per cent, down from 13.6 per cent in the first nine months of 2013.

Consolidated nine-month earnings before interest and taxes (EBIT) from continuing operations fell steeply by 34.8 per cent to €69.5 million from €106.6 million in the previous year.

The substantial rise in fiber sales volumes, which climbed by about 7 per cent resulted in a rise of only 1.8 per cent in the cost of material and other purchased services to €896.7 million in a like-for-like comparison.

“This moderate rise reflects the cost reduction measures encompassed in the excelLENZ program as well as stable or in some individual cases lower raw material prices,” Lenzing explained.

In the first nine months of 2014, depreciation of property, plant and equipment and amortization of intangible assets totalled to €92.4 million, up 7.8 per cent above the comparable prior year level.

Other operating expenses fell 7.8 per cent to €151.0 million in the period under review from the prior-year level of €163.8 million.

Lenzing was able to cut its net loss in the reporting quarter to €16.3 million from prior-year net loss of €19.1 million, which is attributed mainly to positive foreign currency translation effects. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Kevin Nelson
TissueGen

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

Paolo Ocleppo
Sandvik Hyperion

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

Eric Scholler
Groz-Beckert

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Rupa Sood and Sharan Apparao
Nayaab

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

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

news category


Related Categories:
June 2017

June 2017

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

SUBSCRIBE


Browse Our Archives

GO


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