solid half year results

09.08.2018 The Lenzing Group generated solid results in a challenging market environment in the 1st half of 2018. The decline in sales and earnings compared with the 1st half of the previous year, which was the best half-year in the company’s history, was based on a mix of volatile prices for standard viscose and price increases for key raw materials, coupled with currency effects.

Lenzing Ballenlager
© Photo: Lenzing
Lenzing Ballenlager

Sales declined by 6.4 % to € 1.08 billion. This decrease is primarily attributable to less favorable currency exchange rates. EBIT declined by 37 % to € 128.7 million, leading to a lower EBIT margin of 12 % (H1/2017: 17.8 %).

Investments rose by 60.8 % year-on-year to € 117 million in the 1st half of 2018. This is primarily attributable to the capacity expansions in Heiligenkreuz/Austria and Mobile, AL/USA and the expansion of the existing dissolving wood pulp plant in Lenzing. The company is pressing ahead with these projects as well as with planning work on the construction of the next state-of-the-art lyocell production facility in Prachinburi/Thailand.