16. May 2017 | Fibers & Filaments
Lenzing Group achieves best quarterly results in its history
Compared to the prior-year quarter, consolidated revenue climbed 14.3 percent in the first three months of 2017 to EUR 586.2 mn. This rise can be attributed to higher selling prices related to the Chinese New Year as well as an improved product mix, the reduction of inventories and more favorable currency exchange rates. Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) were up 46.6 percent to EUR 135.1 mn, corresponding to an EBITDA margin of 23 percent in comparison to 18 percent in the prior-year period. Earnings before interest and tax (EBIT) of the Lenzing Group increased by 72.1 percent to EUR 102.3 mn, resulting in a higher EBIT margin of 17.5 percent (Q1 2016: 11.6 percent). The profit for the period improved by 69.6 percent to EUR 75 mn, and earnings per share rose 67.9 percent to EUR 2.75 per share.
“The first quarter of 2017 was the best in our company history. A key factor is the disciplined implementation of our sCore TEN corporate strategy. The opening of new sales offices in Turkey and Korea enables us to serve our customers more effectively. We are progressing well with the expansion of our production capacities for specialty fibers. This will support our customers in their own expansion efforts by providing products made of our botanic fibers”, states Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “Assuming that fiber market conditions remain at current levels, we expect a substantial earnings improvement this year compared to 2016.”
Expansion of production capacities for lyocell fibers has started off well
With the ground-breaking ceremony at the Lenzing Group’s production site in Heiligenkreuz, Burgenland (Austria), the end of March marked the beginning of the construction phase to expand capacities for Tencel branded lyocell fibers. As of mid-2018, customers will have an additional 25,000 tons of lyocell specialty fibers at their disposal. The construction of the new production facility for Tencel fibers in Mobile, Alabama (USA), has started already as well and will be finished at the end of the first quarter of 2019. Lenzing is currently examining several potential sites in Asia for a further lyocell plant.