Lenzing AG

euro adhoc: Lenzing AG

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- Demand from Asia ensures full utilization of capacities and a good product mix - A good second quarter

The Lenzing Group looks back on a satisfactory first semester 2004. While the first quarter 2004 was slacker than the first quarter of last year, the second quarter 2004 made it possible to improve all relevant key data on earnings over the second quarter 2003. The positive demand from Asia was the basis for the full utilization of capacities and a good product mix of the Group.

During the first semester 2004 the Lenzing Group succeeded in increasing its consolidated corporate sales by 11.5%, to EUR 336.1 mill., as compared to the same period of the previous year. The main reasons for this increase in sales were higher production quantities at the Lenzing site, as well as the take-over of the Tencel group of companies as of 4 May.

Business with Asia made it possible to offset the continuing slack demand from Europe.

At the Lyocell production site at Heiligenkreuz, the second production line went into operation on schedule during the first six months of the year. One-off expenses in the amount of EUR 4.1 mill. were already entered in the accounts for the first semester 2004.

The first semester 2004 took a good course for Lenzing Plastics and Lenzing Technik, the non-fiber-specific business sectors. The paper sector took a less positive development, since the slack business activities in Europe affected sales, as well as the result.


For the second semester, Lenzing expects a satisfactory demand for fibers resulting in stable earnings. Considerable uncertainties will result from the further development of cotton prices, which the market always uses as a benchmark for all fibers. Since a record cotton harvest is expected, prices have shown a clear downward trend recently. The dollar exchange rate, too, may have considerable influence on the further development of the business result.

Important key data according to US GAAP,
on a Group basis (in EUR mill.)            1st sem. 2004    1st sem. 2003
Sales                                                         336.1      301.4
EBITDA                                                         60.8        57.9
EBIT                                                            35.4        36.1
Net income before taxes and
minority interest (EBT)                                38.8      40.1
Net income                                                    31.7      28.0
Investments                                                  31.3      46.1
Stockholders equity                                    412.6    368.0
Staff*                                                         3,438    3,022
* 2003 without Lenzing Fibers Corporation (LFC), for 2004 incl.

end of announcement            euro adhoc 26.08.2004

Further inquiry note: Angelika Guldt a.guldt@lenzing.com 0043 7672 701 2713

Branche: Chemicals
ISIN:      AT0000644505
WKN:        064450
Index:    WBI
Börsen:  Wiener Börse AG / official dealing
              Berliner Wertpapierbörse / free trade
              Bayerische Börse / free trade
              Baden-Württembergische Wertpapierbörse / free trade

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