Revenue of the Lenzing Group increased by 1.2% in the first half of 2019 and amounted to Euro 1.09 billion. EBITDA (earnings before interest, tax, depreciation and amortization) dropped by 7% to Euro 181.2 million. This decline primarily resulted from higher production volumes and currency effects which led to an increase in pulp costs, from an increase in personnel expenses and the market environment for standard viscose.

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Lenzing Group's 1H 2019 revenue increased by 1.2%

Revenue of the Lenzing Group increased by 1.2% in the first half of 2019 and amounted to Euro 1.09 billion. In addition to more favorable currency relations, this was primarily attributable to a further product mix optimization and higher prices for specialty fibers, as the company said in the press release received by Lesprom Network.

EBITDA (earnings before interest, tax, depreciation and amortization) dropped by 7% to Euro 181.2 million. This decline primarily resulted from higher production volumes and currency effects which led to an increase in pulp costs, from an increase in personnel expenses and the market environment for standard viscose.

The EBITDA margin declined from 18.1% in the first half of 2018 to 16.6% in the reporting period.

EBIT (earnings before interest and tax) fell by 17.9% to Euro 105.6 million, resulting in a lower EBIT margin of 9.7% (H1 2018: 12%).

Net profit for the period decreased by 15.9% from Euro 91.3 million to Euro 76.8 million. Earnings per share amounted to Euro 2.97.

“Fully in line with our sCore TEN strategy, our specialty fiber business is developing very positively, which has made us significantly more resilient today than a few years back. The investment in new production capacities for lyocell fibers and the focus on our TENCEL™ and VEOCEL™ product brands will make us even more resistant to market fluctuations and strengthen our position as a leading supplier of specialty fibers. The first phase of this ambitious growth plan is the construction of a state-of-the-art lyocell plant in Thailand”, says Stefan Doboczky, CEO of the Lenzing Group. “The escalating trade conflict between the largest economies confirm our decision to temporarily mothball the Mobile, Alabama project. Lenzing will continue to monitor these developments closely and review this decision on a regular basis”, says Doboczky.