Lenzing AG: Marked increase in Q1 sales

15 May '06

3 min read

Fibres manufacturer for the textile industry Lenzing AG has started cellulosische fibers with a strong turnover plus due to clearly increased outputs at all locations in the core business in the year 2006.

The consolidated sales went up by 11.8 percent to €261.2 million for the first quarter of 2006 compared to €233.8 million for the reference period of 2005. EBIT correspondingly declined to €22.8 million (reference period 2005: €27.4 million) with the relative decline of 16.6 percent highlighting the best-ever quarterly performance of the 2005 reference period in company history.

The net income for the first quarter was €14.1 mill (reference period 2005: €20.5 million).

The EBIT margin for the first quarter of 2006 was at 8.8 percent (reference period 2005: 11.7 percent and all of 2005: 8.7 percent). The corresponding EBITDA margin was 14.8 percent (reference period 2005: 18.4 percent and all of 2005: 15 percent).

The equity ratio improved to 49.0 percent (31st December 2005: 48.0 percent). Net debt at the end of the first quarter of 2006 was reduced to €141.3 million, down from €169.0 million as at 31st December 2005.

Textile fibre demand stabilized, stopping last year's downward trend. The first quarter saw new fiber production records at several Lenzing sites. All plants ran at full capacity. The market received new products and fiber applications positively, making them contributors to the rising business volume.

The economic activity of Business Unit Nonwoven Fibers was characterized by very good quantity demand. Price levels, however, are still unsatisfactory.

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