Home / Knowledge / News / Textiles / Lenzing Group records historic third quarter
Lenzing Group records historic third quarter
18
Nov '10
The Lenzing Group extended its strong upward development of the first half year into the third quarter of 2010. EBIT of EUR 60.8 million (third quarter 2009: EUR 37.3 million) generated the best quarterly result in the company's history. Nine-months sales in 2010 grew by 45.2 % from EUR 885.0 million (2009 reference period) to EUR 1.285.5 million EBIT reached a new nine-month record high of EUR 168.8 million and more than tripled EBIT of the 2009 reference period (EUR 54.3 million).

The reason for the strong growth of sales and results lies in the significantly improved business development of cellulose fibers which turned out to be far better than expected still at mid year. Higher shipments as a result of increased production capacity, a fiber price level improved over last year's and the full consolidation of the Paskov pulp factory from May 2010 on yielded correspondingly positive results. Sales excluding acquisition effects grew by 37.7 %.

Peter Untersperger, Chairman of the Lenzing management board comments on the development of the business: "We are facing a growing and sustainable excess in demand in all important fiber markets". In addition, the floods in Pakistan and India recently caused the global textile fiber market to expect a significant physical shortage of cotton and triggered a distinct increase in cotton prices.

Peter Untersperger: "The calamitous weather situation in Pakistan and India has led to rethinking. Cotton will in the future be viewed with ever increasing doubt concerning the crop's pricing and availability. Market analysts therefore expect a structural change of the global fiber market which should strongly benefit cellulose man-made fibers, such as viscose, modal and TENCEL in the medium and long term."

All fiber production sites of the Lenzing Group were fully utilized and partly achieved new records in production and shipment. The increase in raw material prices was largely, but not fully passed on to the market. The ongoing capacity expansion programs at almost all fiber production sites will relieve the demand-driven pressure on production in the course of 2011/12 to a certain extent.

Outlook
The fourth quarter, too, is expected to show a continuation of the dynamic market development and excellent results in its core business fibers. Lenzing's fourth-quarter fiber capacity has been largely sold already. Lenzing will continue its long-term and fair pricing policy of the recent months and years, even under the given positive framework conditions. A product mix further improved by favoring special fibers with attractive margins, increased fiber and pulp production capacity and a very good internal cost structure allow the expectation that business year 2010, despite the currently tight raw material price situation, will provide a new record result for the Lenzing Group.

The Lenzing Group


Must ReadView All

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

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

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Ashok Desai
Bombay Textile Research Association

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

Karan Arora
Karan Arora

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

Sanjukta Dutta
Sanjukta's Studio

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

news category


Related Categories:
June 2017

June 2017

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

SUBSCRIBE


Browse Our Archives

GO


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