Tous Actualités
Suivre
Abonner Lenzing AG

Lenzing AG

EANS-Adhoc: Lenzing AG
Difficult first quarter for the Lenzing Group

  ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
  distribution. The issuer is solely responsible for the content of this
  announcement.
quarterly report
08.05.2009
Difficult first quarter for the Lenzing Group
Global economic decline burdens fiber industry
The decline of the global economy, triggered by the financial crisis,
has massively affected the world fiber industry, too. The sales and 
results figures of the Lenzing Group for the first quarter of 2009 
reflect this process. In comparison to the excellent result of last 
year´s first quarter, consolidated quarterly sales dropped by 18.1%, 
from EUR 346.8 mill. to EUR 284.0 mill. The dramatic collapse of 
fiber prices, particularly in Asia, and lower quantity sales were the
main reason for this development. The fiber prices of the first 
quarter 2008 had been above the annual average, the decline is 
therefore particularly pronounced: compared to the fourth quarter of 
2008 sales only dropped by about 10%.
First quarter EBIT came to minus EUR 1.9 mill. (2008: plus EUR 42.1 
mill.). Increased interest expenses and highly volatile currency 
markets resulted in a financial result of minus EUR 4.6 mill. (2008: 
minus EUR 3.6 mill.) and EBT of minus EUR 6.5 mill. (2008: plus EUR 
38.5 mill.) and a net loss attributable to the shareholders of 
Lenzing AG of EUR 3.6 mill. (2008: net attributable income EUR 26.5 
mill.). Earnings per share fell to minus EUR 0.98 (2008: plus EUR 
7.22).
Peter Untersperger, chairman of the Lenzing management board comments
on the current situation "The recession already left a very clear 
mark on the fourth quarter of 2008 and this negative trend has become
even more pronounced with the beginning of 2009. The Lenzing Group 
could not defy this situation, either. But precisely in this 
environment Lenzing will maintain its position as a solid and 
reliable supplier and partner, a fact that is very much appreciated 
by our customers. It is a strategy that currently gains market share 
for Lenzing fibers in a recessive climate and from which we will 
benefit with the next economic upswing."
The period EBIT margin came to minus 0.7% (2008: 12.1%) and the 
EBITDA margin to 6.0% (2008: 17.2%). The Group at the reporting date,
31 March 2009, employed a staff of 5,824 (31 December 2008: 5,945). 
The decline is mainly attributable to structural changes in Segment 
Plastics.
Business Units Textile Fibers and Nonwoven Fibers
The first weeks of 2009 brought a decline in fiber prices which was 
in part dramatic. Lenzing production capacity had to be adjusted to 
market demand, in particular in Asia, with the turn of the year due 
to the difficult market situation. Full production shut-down, as 
implemented by some competitors, was not considered an option. The 
general fiber price level and quantity demand showed tentative signs 
of consolidation by the end of the first quarter. Nonwovens report 
slightly rising sales volumes after a steep decline. Here too, 
however, the price level is very low.
Segment Plastics was considerably affected by the general decline of 
the European economy, despite lower raw material prices. The segment 
immediately adapted production to the difficult market situation. 
Short work hours had to be introduced at some German sites. The US 
demand for special products, on the other hand, remained fairly 
stable.
Segment Engineering reached its set business targets for the first 
quarter.
Outlook
The year 2009 will be a difficult and volatile business year for the 
Lenzing Group, in particular in view of the further marked decline of
the global economy in the first months of 2009.  Domestic demand in 
western industrialized nations remains weak. There are first signs of
quantity demand in business sector fibers firming up. There is, 
however, no indication to which extent this will lead to sustainable 
stabilization. Prices remain at absolutely unsatisfactory levels and 
margins are depressed. The global market situation remains uncertain,
highly volatile and currently unpredictable.
As unsatisfactory is the situation for Segment Plastics. The recent 
easing of raw material prices and the expected comprehensive spending
by the public sector may have positive impact on the construction 
industry and by implication the business development of Lenzing 
Plastics. Due to good order bookings, Segment Engineering expects a 
stable development of its business.
Further cost optimization and savings potential in the double-digit 
million euro range will be realized in all business units and at all 
sites, in production as well as in sales and administration. Segment 
Plastics will press ahead with optimizing its products and 
restructuring its organization.
Business development is expected to recover slightly at a low level 
with the end of the second half-year 2009, provided the global 
economy becomes less volatile and provided that the perceptible 
stabilization of demand will endure throughout the summer months.
Consolidated company key figures (IFRS)
in EUR mill.                             1-3/2009     1-3/2008
Sales                                       284.0        346.8
EBITDA                                       16.9         59.6
EBIT                                         -1.9         42.1
EBT                                          -6.5         38.5
Net income attributable to shareholders      -3.6         26.5
EBITDA margin in %                            6.0         17.2
EBIT margin in %                             -0.7         12.1
Gross cash flow                              12.6         40.1
Investment in property, plant and
equipment and intangible assets              40.0         28.3
31/03/09     31/12/08
Adjusted equity ratio* in %                  42.5         42.7
Staff                                     5,824        5,945
*Equity including government grants less proportionate deferred taxes
end of announcement                               euro adhoc

Further inquiry note:

Lenzing AG
Mag. Angelika Guldt
Tel.: +43 (0) 7672-701-2713
Fax: +43 (0) 07672-96301
mailto:a.guldt@lenzing.com

Branche: Chemicals
ISIN: AT0000644505
WKN: 852927
Index: WBI
Börsen: Börse Berlin / free trade
Wiener Börse AG / official dealing

Plus de actualités: Lenzing AG
Plus de actualités: Lenzing AG