No effect of volatile market trends last year – Lenzing

The Lenzing Group continued its dynamic growth path of previous years by posting record results in 2011. Despite a significant weakening of the global fiber market in the second half of 2011, Lenzing once again achieved double-digit growth rates in sales and earnings, and surpassed the threshold of EUR 2 bn in consolidated sales for the first time in the company’s history. Operating margins also improved again from the already high level achieved in 2010 and set a new, absolute record.

Consolidated sales in the reporting year 2011 rose by 21.2% to EUR 2.14 bn, up from EUR 1.77 bn in the prior year. This dynamic sales growth can be attributed to higher average selling prices in its core fiber business, higher fiber shipment volumes, the first-time full-year consolidation of the pulp plant Biocel Paskov acquired in May 2010 as well as higher sales in all other business areas.

Consolidated EBITDA (earnings before interest, tax, depreciation and amortization) amounted to EUR 480.3 mn, a rise of 45.3% from the comparable figure of EUR 330.6 mn in the previous year. Earnings before interest and tax (EBIT) climbed by 56.9% to EUR 364.0 mn (2010: EUR 231.9 mn). The EBITDA and EBIT margins reached an all-time high in 2011 at 22.4% (2010: 18.7%) and 17.0% (2010: 13.1%) respectively.

“Our dynamic growth path and specialty strategy led by the fibers Lenzing Modal and TENCEL once again paid off in 2011. Whereas sales with standard viscose fibers increased by close to 20% year-on-year, we sold some 30% more TENCEL fibers and close to 40% more Lenzing Modal fibers than in the prior year”, explains Lenzing Chief Executive Officer Peter Untersperger.

for more details please visit : No effect of volatile market trends last year – Lenzing @ fibre2fashion