Lenzing is used to double-digit growth over last 10 years
Based on preliminary figures, the Lenzing Group, a world market leader in man-made cellulose fibers for the textile and nonwovens industry, achieved record results in the 2010 business year. The determinative factors for this result were the dynamic expansion of fiber production, very strong demand for Lenzing fibers and significantly higher fiber sales prices compared to the previous year.
Preliminary consolidated sales1 increased by 45% from EUR 1.22 billion in 20092 to EUR 1.77 billion. Preliminary consolidated EBITDA rose by 76% from EUR 187.9 million to EUR 330.6 million. Preliminary consolidated income from operations (EBIT) more than doubled, increasing by 103% from EUR 114.2 million to EUR 231.9 million. Based on preliminary results, the Lenzing Group has accordingly achieved the highest growth rates in its history for all financial key performance indicators.
“In 2010, we benefitted from the expansion strategy we pursued in recent years. We could have sold even more fibers than we were able to produce. From our point of view, the 2010 business year was not a one-off event but the beginning of a long-term upward trend in the development of the manmade cellulose fiber business. The reason for this is the increasing structural shortage of cotton on the global market, which leads textile manufacturers to increasingly turn to alternatives such as Lenzing fibers”, explains Lenzing CEO Peter Untersperger, commenting on the preliminary results for 2010.
For this reason, the Lenzing Group laid the foundation for the most ambitious expansion program in its history in 2010. Lenzing plans to increase fiber production capacity from approx. 710,000 tons as of year-end 2010 by approx. 300.000 tons to more than one million tons by the end of 2014, mainly through expansion and modernization investments. In addition, the Lenzing Group plans to increase the share of pulp, the most important raw material used in the fiber production process, that it sources from its integrated own supply from currently 40% to more than two-thirds of the Group's total requirements. Including maintenance investments, Lenzing plans to invest approx. EUR 1.5 billion through 2014.
With approx. 90% of consolidated sales, the Fibers segment, the Lenzing Group's core business, was again the Group's main growth driver in 2010.
According to first estimates, the global textile fiber market showed a dynamic upward development in 2010. Global fiber production increased 8.7% to 73.2 million tons, surpassing the previous record figure of 72.3 million tons in 2007. Based on first estimates, the global production of man-made cellulose fibers reached an all-time high of 4.2 mill. tons (+12.9%).3
While cotton production rose by 13.0% compared to the very weak output in the previous year to 24.7 million tons, this increase was insufficient to fully satisfy demand. Floodings in Pakistan, India and, most recently, Australia further aggravated the situation. Therefore, cotton prices, which serve as reference prices for the entire fiber industry, have shown an unprecedented upward trend. Since the beginning of 2010, the Cotton ”A” Index has increased by 180% to 219.50 ct/lb.