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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

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