Successful business development in Q1 at Lenzing

09 May '08

3 min read

The very good business development of the Lenzing Group in 2007 continued into the first quarter of 2008, although there were first signs of weakening demand over the next quarters in segment Fibers.

Consolidated sales rose by 23.3% from EUR 281.3 mill. to EUR 346.8 mill. as a result of increased volume production, higher fiber prices and the inclusion of the companies acquired by segment Plastics in 2007.

First quarter EBIT grew by 27.6% to EUR 42.1 mill. (2007: EUR 33.0 mill.), EBT improved from EUR 30.8 mill. to EUR 38.5 mill. Period net income increased by 24.3% to EUR 28.6 mill. (2007: EUR 23.0 mill.). Quarterly earnings per share came to EUR 7.22 (2007: EUR 5.78).

Thomas Fahnemann, chairman of the management board, comments:
“The first quarter was characterized by very good Asian demand for fibers. We therefore managed to keep our margins more or less up to previous year's levels despite significantly increased raw material prices.”

The first quarter EBIT margin was 12.1% (2007: 11.7%), the EBITDA margin 17.2% (2007: 17.5%). As at 31 March 2008 the Lenzing Group employed 5,925 people. (31 December 2007: 6,043). The decrease reflects the sale of segment Paper.

Segment Fibers: strong demand continues
The strong demand for fibers continued into the first quarter. The textile as well as the nonwovens industry benefited from good demand in Europe and in the emerging markets. The high level of capacity utilization in the nonwovens industry in Europe and in the USA was unchanged.

More Lenzing Group News... More Textiles News - Austria...