New record fiber shipment volume in Q2 – Lenzing

The Lenzing Group has correspondingly adapted its outlook for the entire year 2012 in the light of the fact that business is no longer expected to develop in a mirror-inverted manner compared to 2012. From today’s perspective consolidated sales will likely be at approximately the prior-year level and amount to EUR 2.1 to 2.15 bn. Fiber shipment volumes are expected to reach about 810,000 tons, corresponding to a considerable rise of 14%. On the basis of the early completion of the new fifth production line at its Indonesian subsidiary SPV, Lenzing is confident of already achieving initial sales revenue from this new production facility in the fourth quarter of 2012. Additional fiber volumes will also be derived from the plant optimization program and expansion of the TENCEL site in Mobile/Alabama (USA). 

 

The Lenzing Group performed very well in the first half of 2012 against the backdrop of a difficult market environment. The ambitious business targets#

As a consequence of this ongoing dynamic development, Lenzing now forecasts a new EBITDA range of between EUR 350 mn and EUR 400 mn (previous guidance: EUR 400 – 480 mn). In addition, Lenzing expects EBIT in 2012 to be within a range of EUR 240 – 290 mn (previous guidance: EUR 285 – 365 mn). Capital expenditure in 2012 will likely total approximately EUR 325 mn. 

 

The Lenzing Group performed very well in the first half of 2012 against the backdrop of a difficult market environment. The ambitious business targets#

The overall global economic development could have both positive and negative effects on the company’s business in the second half of the year. Furthermore, expectations relating to the upcoming cotton harvest in the upcoming 2012/13 cotton crop year comprise an important but still unclear factor impacting further market development. The long-term trend towards man-made cellulose fibers remains intact. This has been underlined by the nascent rally in agricultural raw material prices since June 2012 as well as the recent stable cotton price level which is significantly higher than in past years despite the temporary surplus in the cotton supply. The Lenzing Group is very well prepared to meet these challenges. For this reason, Lenzing will remain committed to its growth path for the coming years.