Lenzing AG

EANS-News: Lenzing AG
Lenzing Group: Substantial Earnings Increase in the First Nine Months of 2016

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9-month report

- Revenue up 8.2 percent to EUR 1,578.4 mn 
- EBITDA improvement of 52.2 percent to EUR 320.6 mn
- Operating cash flow doubled to EUR 374.9 mn
- Investment programs for pulp and specialty fibers gain momentum

Lenzing, November 16, 2016 - The Lenzing Group generated a substantial increase
in revenue and earnings in the first nine months of 2016, compared to the first
nine months of 2015. Significant improvements of cash flow and thus reduction of
net debt provide the basis for further investments and the implementation of the
sCore TEN strategy. 

Consolidated revenue rose by 8.2 percent in the first nine months of 2016 to EUR
1,578.4 mn year-on-year. Next to slightly higher sales volumes it was primarily
higher selling prices of all three fiber generations - Viscose, Modal and
TENCEL® - and a more attractive product mix that contributed to higher revenues.
In the third quarter it was specifically the sharp increase in viscose prices
that fueled the results.

Consolidated earnings before interest, tax, depreciation and amortization
(EBITDA) rose by 52.2 percent to EUR 320.6 mn. This corresponds to an EBITDA
margin of 20.3 percent, up from 14.4 year-on-year. Earnings before interest and
tax (EBIT) of the Lenzing Group almost doubled to EUR 221.7 mn. Accordingly, the
EBIT margin increased to 14 percent from 7.7 percent previously. Earnings before
tax (EBT) totaled EUR 207.1 mn, up 84.2 percent. The net profit for the period
at EUR 162.1 mn was 91.1 percent higher than in the first three quarters of
2015. As a result, earnings per share increased 84.6 percent to EUR 5.98.

In the first nine months of 2016, the good business development resulted in a
twofold increase in the operating cash flow to EUR 374.9 mn. Next to the very
strong operational performance it was particularly good working capital
management that fueled cash generation. As a consequence key balance sheet
indicators further improved. At the end of September 2016, net financial debt
fell to EUR 64.2 mn (December 31, 2015: EUR 327.9 mn). Net gearing was down to
4.9 percent from 26.9 percent previously.

The strong balance sheet supports the investment program already initiated: The
expansion of specialty fiber production by 35,000 tons per year at the
Heiligenkreuz, Lenzing and Grimsby sites is already underway. Investment volume
will total about EUR 100 mn. In addition, pulp production will be modernized in
Lenzing and Paskov by 2019, also at a cost of around EUR 100 mn. This will lead
to additional capacities of approximately 35,000 tons annually. 

"The Lenzing Group continues to implement the sCore TEN strategy with great
discipline and the excellent business performance further helped our already
strong balance sheet," says Stefan Doboczky, Chief Executive Officer of Lenzing
AG. "These nine months underpin our confidence and are an excellent basis for
the implementation of our ambitious growth program." 

Outlook 
The macroeconomic environment remains volatile especially given the recent
political events. Against this background the fundamentals of the wood-based
cellulosic fiber industry should stay favorable in the mid-term. Lenzing expects
however viscose prices to be notably lower than the high peaks of the third
quarter due to seasonality effects. Under the assumption of unchanged positive
fiber market conditions and foreign exchange rates Lenzing will deliver
excellent business results in the financial year 2016. 


Key Group indicators
(IFRS)  

(in EUR mn)                                01-09/2016              01-09/2015(1)
Revenue                                       1,578.4                    1,458.9
Earnings before interest,
tax, depreciation and                           320.6                      210.6
amortization (EBITDA)
EBITDA marginin %                                20.3                       14.4
Earnings before interest                        221.7                      112.0
and tax (EBIT)
EBIT marginin %                                  14.0                        7.7
Net profit/loss for the                         162.1                       84.8
period
CAPEX(2)                                         64.2                       44.3
                                                                                
                                           30/09/2016              31/12/2015(1)
Adjusted equity Ratio(3)in %                     51,3                       50.6
Trading working capital(4)                      382,5                      447.4
Number of employees at                          6,140                      6,127
period-end



1) The figures were partially adjusted (for further details please refer to the
"Notes on the Financial Performance Indicators of the Lenzing Group", available
at the following link:
http://www.lenzing.com/Notes-Financial-Performance-Indicators-Lenzing-Group-2016-Q3).  
2) Capital expenditures: Equals acquisition of intangible assets, property,
plant and equipment as per statement of cash flows.
3) Ratio of adjusted equity to total assets as a percentage. 
4) Inventories plus trade receivables less trade payables.


Photo download:
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Further inquiry note:
Lenzing AG
Mag. Waltraud Kaserer
Vice President Corporate Communications & Investor Relations
Tel.: +43 (0) 7672 701-2713
mailto:w.kaserer@lenzing.com

end of announcement                               euro adhoc 
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company:     Lenzing AG
               
             A-A-4860 Lenzing
phone:       +43 7672-701-0
FAX:         +43 7672-96301
mail:     office@lenzing.com
WWW:      http://www.lenzing.com
sector:      Chemicals
ISIN:        AT0000644505
indexes:     WBI, ATX, Prime Market
stockmarkets: official market: Wien 
language:   English
 

 


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