Very good development in core business Fibers at Lenzing
As in the first quarter of 2010, the Lenzing Group made optimum use of the good global market environment and achieved an excellent result in the second quarter.
Consolidated sales in the first half of 2010 climbed by 43.6 %1 to EUR 847.2 mill. from EUR 589.9 mill. This was the strongest rise in sales in the past years. It was enabled by higher fiber quantity, the price dynamics of global markets, as well as by the first-time full consolidation, from early May of 2010 on, of the pulp production site Biocel Paskov (Czech Republic), acquired in April 2010.
The operative result developed even more dynamically than sales. Half year EBIT increased sevenfold from EUR 15.4 mill. to EUR 108.6 mill. Due to the higher cost of financing investment EBT increased thirteen-fold from EUR 8.0 mill. to EUR 105.0 mill. Profit for the period, after deduction of income taxes of EUR 24.6 mill. (2009: EUR 2.1 mill.), came to EUR 80.4 mill. (2009: EUR 5.9 mill.). The profit of the first half of 2010 already now exceeds that of the total annual profits of 2008 and 2009, respectively. The first half year of 2010 was therefore the best half year in the history of the company.
Peter Untersperger, CEO of Lenzing AG, comments: “The half year result shows that the company's anti-cyclical investment strategy of the years 2008 and 2009 was absolutely right. The startup of new fiber capacity in Indonesia in the first half of 2010, investment in debottlenecking in China and the expansion of Heiligenkreuz (Austria) put us in a position to make optimum use of the expected fiber market dynamics and to give our customers what they need.
“Despite all these considerable investments and the acquisition of Biocel Paskov Lenzing today has an equity ratio of 42.1 % of the balance sheet total at a net gearing rate of 54.3 %. These provide the company with a sustained solid balance sheet structure.”
Positive development of all segments
Excluding acquisition effects: 38.8 %
Sales of segment Fibers grew by 46.3% to EUR 741.0 mill. and the result improved from past year's EUR 13.0 mill. to EUR 102.9 mill. despite raw material prices beginning to rise considerably in the second quarter of 2010. Higher production capacity along with full utilization at all sites and significantly higher prices were the reason for this excellent development.
Business unit Textile Fibers as well as Nonwoven Fibers performed excellently. In particular the special fibers Lenzing Modal and TENCEL met with above-average broad-based success due to innovative applications. Demand from all major sales markets in Asia, but Europe and USA as well, was strong.
The development of business unit Engineering in the first half of the year was characterized by the continued high investment activity of the Lenzing Group and good order bookings from external customers. Stable half year sales of EUR 38.4 mill. (2009: EUR 38.8 mill.) provided asegment result of EUR 2.5 mill. (first half year 2009: EUR 3.5 mill.).