Good development of Lenzing Plastics and Lenzing Technik The development of Lenzing Plastics continued to be positive. The company, however, has to face drastic increases in raw material prices. Lenzing Technik again achieved a very good result in the first nine months of 2005, in line with the record result of the previous year. The third quarter of 2005 did not bring any changes in the unsatisfactory market situation for Lenzing Paper.
Current operative cost optimization measures and a cost efficiency program negotiated with staff will help improve the result situation.
Outlook: Increasing pressure by higher energy and raw material prices Cost pressure by raw materials and energy prices and the shift of demand to Asia will increase in the fourth quarter and in the first six months of 2006.
Lenzing will counter the changes in cost structure and the flow of commodities by timely cost optimization measures at all process levels and at all sites. A slight recovery of quantity demand for fibers is to be expected for the remainder of the year.
Upper Austria based Lenzing Group's fibers, made of wood, a renewable raw material, are used by the textile industry - for garments, home textiles and technical textiles - as well as by the nonwovens industry.