LENZING, Austria — November 16, 2010 — The Lenzing Group extended its strong upward development of
the first half year into the third quarter of 2010. EBIT of EUR 60.8 mill. (third quarter 2009: EUR
37.3 mill.) generated the best quarterly result in the company’s history. Nine-months sales in 2010
grew by 45.2% from EUR 885.0 mill. (2009 reference period) to EUR 1.285.5 mill. EBIT reached a new
nine-month record high of EUR 168.8 mill. and more than tripled EBIT of the 2009 reference period
(EUR 54.3 mill.).
The reason for the strong growth of sales and results lies in the significantly improved
business development of cellulose fibers which turned out to be far better than expected still at
mid year. Higher shipments as a result of increased production capacity, a fiber price level
improved over last year’s and the full consolidation of the Paskov pulp factory from May 2010 on
yielded correspondingly positive results. Sales excluding acquisition effects grew by 37.7%.
Peter Untersperger, chairman of the Lenzing management board comments on the development of
the business: “We are facing a growing and sustainable excess in demand in all important fiber
markets”. In addition, the floods in Pakistan and India recently caused the global textile fiber
market to expect a significant physical shortage of cotton and triggered a distinct increase in
cotton prices.
Peter Untersperger: “The calamitous weather situation in Pakistan and India has led to
rethinking. Cotton will in the future be viewed with ever increasing doubt concerning the crop’s
pricing and availability. Market analysts therefore expect a structural change of the global fiber
market which should strongly benefit cellulose man-made fibers, such as viscose, modal and TENCEL
® in the medium and long term.”
All fiber production sites of the Lenzing Group were fully utilized and partly achieved new
records in production and shipment. The increase in raw material prices was largely, but not fully
passed on to the market. The ongoing capacity expansion programs at almost all fiber production
sites will relieve the demand-driven pressure on production in the course of 2011/12 to a certain
extent.
Outlook
The fourth quarter, too, is expected to show a continuation of the dynamic market
development and excellent results in its core business fibers. Lenzing’s fourth-quarter fiber
capacity has been largely sold already. Lenzing will continue its long-term and fair pricing policy
of the recent months and years, even under the given positive framework conditions. A product mix
further improved by favoring special fibers with attractive margins, increased fiber and pulp
production capacity and a very good internal cost structure allow the expectation that business
year 2010, despite the currently tight raw material price situation, will provide a new record
result for the Lenzing Group.
Posted on December 7, 2010
Source: Lenzing Group
