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Outstanding business in first quarter - Lenzing
11 May '11
4 min read
The Fibers segment, the biggest segment of the Lenzing Group, showed outstanding business development in the first quarter of 2011, benefiting from strong fiber demand. At the beginning of 2011, announced price increases of about 10% were implemented in the Textile Fibers and Nonwoven Fibers business units, and were well accepted by the market.
The core fibers business of the Lenzing Group continues to benefit from a continuing upward trend. Assuming a stable global economy that is not negatively influenced by geopolitical events, the 2011 business year of the Lenzing Group is expected to develop more favorably than originally forecast at the beginning of the year.
The main reason is the better than expected acceptance of price increases, especially for specialty fibers (Lenzing Modal and TENCEL), which in turn is related to the current global fiber price structure with still high cotton prices.
The Management Board plans consolidated sales to increase to between EUR 2.1 billion and EUR 2.2 billion. Furthermore, for the business year 2011, the Management Board is targeting to achieve an EBITDA margin of 21% – 23% and an EBIT margin of 16% – 18%. The Management Board also plans investments and the payout ratio for 2011 to remain unchanged at approximately 15% of sales, and at approximately 25% of the consolidated net income for the year, respectively.
The core fibers business of the Lenzing Group continues to benefit from a continuing upward trend. Assuming a stable global economy that is not negatively influenced by geopolitical events, the 2011 business year of the Lenzing Group is expected to develop more favorably than originally forecast at the beginning of the year.
The main reason is the better than expected acceptance of price increases, especially for specialty fibers (Lenzing Modal and TENCEL), which in turn is related to the current global fiber price structure with still high cotton prices.
The Management Board plans consolidated sales to increase to between EUR 2.1 billion and EUR 2.2 billion. Furthermore, for the business year 2011, the Management Board is targeting to achieve an EBITDA margin of 21% – 23% and an EBIT margin of 16% – 18%. The Management Board also plans investments and the payout ratio for 2011 to remain unchanged at approximately 15% of sales, and at approximately 25% of the consolidated net income for the year, respectively.
The Lenzing Group
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