EANS-Adhoc: Lenzing AG
Lenzing Group Reports Continued Good Development
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quarterly report
15.11.2011
In the first nine months of 2011, the Lenzing Group succeeded in significantly
improving all relevant indicators in comparison to the previous year, and is
thus performing in line with the expectations defined in the half-yearly report.
Consolidated sales in the first nine months of 2011 climbed 23.9% year-on-year,
from EUR 1,285.5 mill. to EUR 1,592.2 mill. A total of 3.5 percentage points of
this increase can be attributed to the higher fiber shipment volumes, whereas
13.6 percentage points are the result of the higher average fiber selling
prices. Growth in other business areas as well as the full consolidation of the
Paskov pulp plant over three quarters also contributed to the rise in
consolidated sales.
EBITDA in the first three quarters of 2011 improved by 55.3% to EUR 362.9 mill.
from the prior-year level of EUR 233.6 mill. This corresponds to an EBITDA
margin of 22.8% (Q1-3 2010: 18.2%). The operating profit (EBIT) in the first
nine months of 2011 was up 71.6% to EUR 289.7 milll. (Q1-3 2010: EUR 168.8
mill.), equivalent to an EBIT margin of 18.2% (Q1-3 2010: 13.1%). The profit for
the period climbed to EUR 217.9 mill. from EUR 122.8 mill. in the previous year,
an increase of 77.5%.
"Following the outstanding second quarter, the market for standard viscose
fibers weakened as expected in the third quarter. Nevertheless, we were able to
post third-quarter earnings which matched the very good first quarter of 2011",
says Lenzing CEO Peter Untersperger. "This was primarily due to the
quantitatively higher share of the specialty fibers Lenzing Modal® and TENCEL®
along with their stable price development. New record shipment volumes were
achieved with Lenzing Modal®".
The current fiber and pulp capacity expansion program of the Lenzing Group is
being resolutely pursued. In the first nine months of 2011, investments climbed
to EUR 130.5 mill. (Q1-3 2010: EUR 118.2 mill.) Nevertheless, the net financial
debt could be significantly reduced by half to EUR 150.0 mill. (December 31,
2010: EUR 307.2 mill.) whereas net gearing reached a new record low of only 15%
(December 31, 2010: 40.5%).
The strong volume demand for both textile and nonwoven fibers has enabled
Lenzing to fully utilize all available fiber production capacities during the
reporting period. Inventories of the Lenzing Group were at a low level at the
end of the third quarter.
Outlook Lenzing Group
The Lenzing Group confirms its outlook for the entire year 2011 published in its
half-yearly report, in which the company is expected to achieve total sales
between EUR 2.1 billion and EUR 2.2 billion. The expected EBITDA is also
unchanged and will be in the range of EUR 470 mill. to a maximum of EUR 500
mill.
In its core fiber business the Lenzing Group anticipates average selling prices
to be broadly in line with third-quarter price levels and full utilization of
its existing fiber production capacities. No major changes are likely to occur
on the raw material side. As expected, the Segments Plastics Products and
Engineering will achieve good results in 2011 which surpass the comparable
prior-year performance.
Due to the company´s good earnings and cash flow situation, net financial debt
should be comparable to the level on September 30, 2011 in spite of the
considerable investments being made until the end of the year. Total investments
in 2011 will remain at about 10% of consolidated sales for the year, as several
partial project invoices will first be reported in the financial statements of
the 2012 business year.
The overall business environment is characterized by uncertainty in Europe and
the USA with respect to the further development of the economy as well as the
temporarily lower credit growth in China and shorter-term decision-making on the
part of customers. From today´s perspective, reliable forecasts pertaining to
the development of the fiber market in 2012 are not yet possible at present. In
any case, Lenzing is convinced that the demand for man-made cellulose fibers
will continue to increase in line with the long-term upward trend. For this
reason, Lenzing will push ahead with the implementation of its planned expansion
program with the aim of enabling the company to optimally supply the market with
about 1.2 million tons annually of Lenzing fibers by 2015.
Key IFRS performance indicators on a Group-wide basis
(in EUR m) 1-9/2011 1-9/2010
Consolidated sales 1,592.2 1,285.5
EBITDA 362.9 233.6
Operating profit (EBIT) 289.7 168.8
Income before tax and minority interests (EBT) 277.0 155.8
Net income for the period 217.9 122.8
EBITDA margin in % 22.8 18.2
EBIT margin in % 18.2 13.1
Gross cash flow 288.6 195.7
Investments (Intangible assets, property,
plant and equipment) 130.5 118.2
30/09/2011 31/12/2010
Adjusted equity ratio(1) in % 44.1 38.6
Employees 6,472 6,530(2)
(1)Equity incl. investment grants, less proportionate deferred taxes
(2)Including employees of discontinued operations
Further inquiry note:
Lenzing AG
Mag. Angelika Guldt
Tel.: +43 (0) 7672-701-2713
Fax: +43 (0) 07672-918-2713
mailto:a.guldt@lenzing.com
end of announcement euro adhoc
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issuer: Lenzing AG
A-A-4860 Lenzing
phone: +43 7672-701-0
FAX: +43 7672-96301
mail: a.guldt@lenzing.com
WWW: http://www.lenzing.com
sector: Chemicals
ISIN: AT0000644505
indexes: WBI, ATX, Prime Market
stockmarkets: free trade: Berlin, official market: Wien
language: English
Original content of: Lenzing AG, transmitted by news aktuell