Strong demand for Lenzing textile products reflects good market situation

30 Nov '06

3 min read

The Lenzing Group continued on its path of dynamic growth in the first nine months of 2006, thanks to very good results in the fiber core business.

Company group sales rose by 16.7% to EUR 814.1 mill. as compared to the reference period 2005. EBIT improved to EUR 80.1 mill., an increase of 16.4%. EBT at EUR 72.2 million was 7.0% higher than last year, despite a less favorable financial result.

Thomas Fahnemann, chairman of the Lenzing AG management board, comments the current business development: "Our strong sales growth up to this point in 2006 is essentially a result of increased fiber output at all our production sites and the successful implementation of price adjustments that had recently become necessary to compensate for the increase in raw material prices."

According to him, fiber business in the recent months has gained added momentum: "Although third quarters as a rule are weak due to seasonal reasons, Lenzing was able to report a record result for the third quarter of 2006."

Quarterly sales rose by 20.3% from EUR 233.2 mill. to EUR 280.6 mill., EBIT increased by 59.7% from EUR 18.6 million to EUR 29.7 mill. Third quarter net income increased by even 66.1% to EUR 20.6 million (2005: EUR 12.4 mill.).

The Lenzing Group at the reporting date 30 September 2006 employed a staff of 4,907 (year end 2005: 4,860)

Business Units Textile Fibers and Nonwoven Fibers
The strong demand for Lenzing textile products reflects the good global market situation, but is also a result of a whole range of Lenzing Group product innovations. Lenzing continued to gain market share, especially in high-quality fiber applications and fiber blends, as well as brand sportswear and brand lingerie products.

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