Home / Knowledge / News / Textiles / Lenzing generates best quarterly result in its history
Lenzing generates best quarterly result in its history
11
May '10
The Lenzing Group smoothly extended the very good business development of the last quarter of 2009 into the first quarter of 2010 and generated the best quarterly result in its history.

Consolidated sales improved by 32.9 %, from EUR 284.0 mill. to EUR 377.4 mill. This dynamic increase reflects increased fiber quantity due to production at full capacity and fiber price adaptations. Substantially improved margins and good degression of fixed costs, caused by the high quantity of produced and shipped fibers created a quarterly operating result of EUR 49.7 mill.(reference period 2009: EUR - 1.9 mill.). Lenzing again accomplished results comparable to those of the boom years 2007/08. The first quarter EBIT margin came to 13.2 % (2009: - 0.7 %) and the EBITDA margin to 18.6 % (2009: 6.0 %). EBT improved to EUR 47.9 mill. (2009: EUR - 6.5 mill.) and period profit to EUR 36.7 mill. (2009: EUR - 5.4 mill.). This corresponds to quarterly earnings per share of EUR 9.22 as compared to the corresponding quarterly loss of EUR 0.98 in 2009.

Peter Untersperger, chairman of the Lenzing management board, on the development of the first quarter: “We now benefit from our strategy of having supplied our customers with fibers in the difficult situation of crisis year 2009. Moreover, the series of innovative applications in textiles and nonwovens developed with our special fibers Lenzing Modal and TENCEL have been well accepted by the market. Our products are going to the right places at the right time.” Peter Untersperger points out that Lenzing's investment in the extension of the now completed fourth fiber production line at PT. South Pacific Viscose (SPV) in Purwakarta/Indonesia and current major investments in other sites will provide the Group with continued benefit above proportion from the current upswing of the fiber industry.

The good cash flow of the first quarter enabled the reduction of net debt to EUR 303.7 mill. (year-end 2009: EUR 315.7 mill.) despite current major investments. The company's adjusted equity ratio at the end of the quarter came to a satisfactory EUR 43.3 % (year-end 2009 43.5 %).

Positive development of all segments
Both Lenzing's standard and special fibers met with very good market success. All fiber production facilities of the Lenzing Group are operating at full capacity, with some of them setting new production records. First quarter stock levels are at an absolute minimum.

The sales markets of segment Plastics Products developed unevenly, but an overall stabilization and a slight recovery from the very difficult year 2009 was noticeable. Utilization on the whole improved and contributed to the positive segment result. Segment Engineering noted a somewhat livelier market. The segment's business development corresponded to the difficult market situation, but was positive.

Outlook
The next months are expected to show continuing strong demand in core business fibers. The consistent expansion of fiber production capacity, in particular the full operation of the fourth line at SPV, will enable continuing good sales and results in the further course of the year. However, attention should be paid to the substantial increase in individual raw material prices, such as pulp, sulfur and wood, and the already well-saturated textile pipeline. Both factors might lead to weaker demand which, on the other hand, would reduce the danger of market overheating. Positive longterm market expectations remain unaffected.

Segments Plastics Products and Engineering can expect a more stable development of sales and results over the next months. From today's perspective the Lenzing Group in 2010 expects a significant increase in sales and results compared to 2009.

The Lenzing Group


Must ReadView All

Union Minister for finance Arun Jaitley chairing the 25th GST Council meeting, flanked by minister of state for finance Shiv Pratap Shukla (right) and finance secretary Dr Hasmukh Adhia. Courtesy: PIB

Textiles | On 20th Jan 2018

GST rate on velvet fabric reduced to 5%

The 25th Goods and Services Tax (GST) Council meeting, held under the ...

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

Textiles | On 20th Jan 2018

RIL petrochemicals’ revenue grows 47.6% in Q3 FY18

The revenue from the petrochemicals segment at Reliance Industries...

Courtesy: Cotton USA

Textiles | On 20th Jan 2018

US cotton bodies pledge to support CCI activities

Ten US cotton organisations have pledged industry contributions in...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Urmil Arya

Sushila International, a well established textile organisation established ...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Suresh Patel
Sidwin Fabric

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

Kevin Nelson
TissueGen

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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

January 2018

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
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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