Lenzing AG delivers good H1 results despite weak market
01 Sep '05
3 min read
Lenzing Plastics and Lenzing Technik exhibit good development Lenzing Plastics was able to increase sales and to again raise the semi-annual result for 2005 slightly.
Excellent development of order bookings from within the Lenzing Group as well as from external constituents was the reason for stable earnings development on a high level at Lenzing Technik.
The paper division of Lenzing AG had to face losses for the first half of 2005, despite cost savings.
Outlook: Difficult market situation to continue
The generally difficult world market situation for viscose fibers will continue in the second half of 2005. This situation will be significantly accentuated by rising costs for raw materials (pulp, caustic soda) in Europe and Asia.
Lenzing will counter this trend by continued enhancement of its Textile Fiber product mix with an increasing focus on specialties and by continued high production of nonwovens. For the Lenzing Group as a whole, weaker earnings are to be expected for the second half of 2005.
The year 2005 as a whole will therefore not be able to match the previous record year.
Key data according to IFRS (in EUR mill.)
Consolidated sales 464.4 407.3
1-6/ 2005 1-6/ 2004
EBITDA 81.3 73.5 EBIT 50.2 48.0 EBT 51.3 45.9
Net Income 38.4 33.5
Lenzing AG core business comprises fibers and is based in Upper Austria.
They are categories into textile and nonwovens fibers which make up 79 percent, technology (machines and plant engineering) 5 percent and plastics constitute 9 percent. and Paper 7%.
Catering to world markets, it provides quality and innovation, setting unique standards in the field of man-made cellulose fibers.
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