Home / Knowledge / News / Textiles / Lenzing counters meldown to record 10% growth
Lenzing counters meldown to record 10% growth
10
Nov '08
The Lenzing Group further enhanced its position as the world market leader in cellulose fibers in the first nine months of 2008 despite the dramatic unfolding of the financial market crisis and difficult global economic conditions.

Consolidated sales rose by 10% from EUR 920.5 mill. to EUR 1,012.1 mill. due to improved fiber prices in the first half of the year, the expansion of production capacity, which resulted in higher shipments, and the first-time full consolidation of the acquisitions made by segment Plastics in 2007.

Cost of material and purchased services rose by 16% to EUR 607.3 mill., mainly due to higher prices for energy, chemicals and other raw materials. Cost could not be fully passed on to the market. Moreover, and as expected, fiber prices started to decline in the third quarter.

For this reason EBIT declined by 6% from EUR 114.0 mill. to EUR 107.1 mill. Higher cost of finance and volatility of the currency markets led to a financial result of minus EUR 18.4 mill. (2007: minus EUR 7.9 mill.) and EBT of EUR 88.7 mill. (2007: EUR 106.1 mill.). Period net income declined by 23% to EUR 62.8 mill (2007: EUR 80.6 mill.).

As at 30 September 2008, the Lenzing Group employed a staff of 5,992 (31 December 2007: 5,918) in its continuing business operations.

Segment Fibers
After an excellent first quarter, the global fiber business markedly cooled down in the second. As was to be expected, prices began to decline. The fiber boom of the past two years has come to an end. The rise in prices for energy and raw materials could not be passed on the market to the same extent and further depressed the result situation after record year 2007.

Fiber production operated at full capacity at all sites. Stock levels currently are average. Business Unit Textile Fibers had excellent sales results with specialty fibers TENCEL and Lenzing Modal with international brand producers in sportswear and womens' wear. Lenzing was well positioned in the new collections of leading Asian lingerie manufactures. The home textile business was gratifying. Overheated European demand in 2007 and the first quarter of 2008 was followed by more balanced supply and demand.

Outlook
The international financial market crisis decidedly accelerated the slow-down of the economy that had already been on the horizon by the middle of the year. The drastic impact on the real economies of Europe and the USA is clearly visible. The Lenzing Group expects business development for the remaining weeks of the year to be satisfactory despite weakening business.

The continuing trend towards high-quality fiber products and specialty products will enable Lenzing to maintain its global market leadership even through challenging times. The following months will see the inevitable decline of fiber margins along with weaker growth. Segment Plastics will improve results by restructuring measures. As seen from today, Lenzing is likely to achieve its second-best EBIT result in history despite the current difficult economic situation.

Lenzing Group


Must ReadView All

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Paolo Ocleppo
Sandvik Hyperion

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

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
9.6%
Skip
3.2%

Total Votes: 94

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


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