'New opportunities will enhance our market position' - Lenzing Chairman
05 Mar '09
5 min read
Segment Plastics in 2008 focused on integrating the acquisitions made in 2007. A new segment strategy adapted segment structure to the strong growth in sales volume and to market conditions. Sales by segment reporting improved from EUR 133.1 mill. to EUR 182.2 mill. which was mainly due to the first full-year consolidation of its 2007 acquisitions. SegmeEBIT came to EUR 7.3 mill. (2007: EUR 9.0 mill.). The product focus of the segment is thermoplastics, PTFE (polytetrafluoroethylene) fibers and yarns, filaments and carbon precursor. Lenzing Plastics operates a total of six production sites in Europe and the USA.
The business environment of Segment Engineering continued to be positive over long stretches of the year. The high readiness of the pulp and fiber industry to invest enabledgood volume of order bookings from the Lenzing Group itself, as well as from external customers. Total sales fell to EUR 110.9 mill. (2007: EUR 119.0 mill.) of which EUR 51.3 mill. (2007: EUR 68.7 mill.) were generated by external sales. EBIT by segment reporting came to EUR 10.0 mill.(2007: EUR 6.2 mill)
The majority of shares in Business Unit Paper and control of the business were transferred at the beginning of March 2008.
Outlook For the time being, the deepening recession, general excess supply of fibers and continweak consumer demand in western industrialized economies will prevent any effective recovery of the global fiber market. After the strong decline in quantity demand in the fourtquarter of 2008 as well as probably in the first half of 2009, first signs of stabilization are, however, expected for the second half of 2009. The current economic environment for Lenzing Plastics is equally unsatisfactory, although the currently lower raw material prices will have a stimulating effect. Comprehensive public investment in infrastructure is hopefully expected to have positive impact on the construction industry which Lenzing Plastics will eventually benefit.
Peter Untersperger emphasizes: “Especially in the current difficult situation we will maintain our position as a solid and reliable supplier, make use of new opportunities and enhanmarket position“. The company aims to further improve its position with customers by maximizing capacity utilization. Lenzing Plastics will flexibly adjust production capacity to market demand, while simultaneously increasing its activates in marketing, distribution and Sales .
Moreover, in 2009 all sites were realize further saving and cost efficiency measures in production, distribution and administration.
A significant decline in the results for 2009 is to be expected, however, despite these comprehensive countermeasures. The company's excellent market position, its technology lead and its product portfolio, as well as good liquidity and a solid balance sheet structurethe basis for realizing market opportunities even in the current situation. Peter Untersperger: We will also master this difficult situation and we ready to make optimum use of the opportunities offered by the next economic uptourn”.
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