Lenzing Group reported 2Q EBITDA of Euro 132.9 million

Aug 23, 2011. /Lesprom Network/. Lenzing Group's consolidated sales in the first half of 2011 rose by 31.0%, from Euro 821.4 million to Euro 1,076.2 million. The reasons underlying the revenue increase were mainly considerably higher fiber prices compared to the prior-year level, as well as the higher fiber shipment volumes and the consolidation effects from the acquisition of the Biocel Paskov pulp plant, as the company said in a press release received by Lesprom Network. Earnings before interest, tax, depreciation and amortization (EBITDA) in the first six months of 2011 rose by 65.1% to the new record level of Euro 247.8 million. This resulted in an all-time high EBITDA margin of 23.0%. Operating profit (EBIT) was almost doubled, rising by 84.5% to Euro 199.2 million, compared to the already excellent EBIT of Euro 108.0 million achieved in the first half of 2010. This corresponds to an EBIT margin of 18.5%. 2Q 2011 featured consolidated sales of Euro 544.1 million and an EBITDA of Euro 132.9 million (margin of 24.4%), an outstanding performance which comprises the best quarterly results in the company’s history. The EBIT of Euro 108.5 million (margin of 19.9%) also represents a new all-time high for Lenzing. “Our global growth strategy together with our intensified specialization in high value fibers such as Lenzing Modal® and TENCEL®, for which we have a unique position on the market, has really paid off”, says Lenzing CEO Peter Untersperger, commenting on the Group’s business development. In any case, the long-term positive development in the form of excess demand for cellulose fibers (“cellulose gap“) will continue and will not be seriously impeded by the latest decline in cotton prices to a realistic price level again, CEO Untersperger adds. The Lenzing Group is an international group of companies with headquarters in Austria, production sites in all major markets and a global network of sales and marketing offices. Lenzing provides the global textile and nonwovens industry with high-quality man-made cellulose fibers based on the renewable resource wood.