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Lenzing AG

euro adhoc: Lenzing AG
Quarterly or Semiannual Financial Statements
Lenzing AG Satisfactory First Quarter 2003 after 2002 - the Best Business Year in the Company's History (E)

Disclosure announcement transmitted by euro adhoc. The issuer is
responsible for the content of this announcement.
With the first quarter 2003, Lenzing was able to link up to the
record results of fiscal 2002. While, in fact, sales remained
unchanged, amounting to EUR 150.7 mill. (after EUR 150.8 mill. in the
same quarter of the previous year), it was possible to improve the
income from operations (EBIT) by about 9% to EUR 20.7 mill. The
EBITDA rose by about 8% to EUR 31.7 mill. The net income before taxes
and minority interest (EBT) improved by 13% and amounted to EUR 21.3
mill. In addition to the good results obtained by the fibers
operations, the other business sectors of Lenzing AG also continue to
contribute good results.
Results of the business sectors
During the first quarter 2003, it was possible to decouple the fibers
sector of Lenzing AG to a very large extent from the unfavorable
overall environment. In the first quarter, too, fiber production
lines at Lenzing AG worked to full capacity.
Demand for Lenzing Lyocell fibers continues to be positive, the
production line at the Heiligenkreuz site is working to full
capacity. In spite of the pressure, caused by currency factors, it
was possible to improve the result for the first quarter, compared to
the first quarter of the previous year, on account of larger
quantities.
South Pacific Viscose (SPV), our Indonesian associate, recorded a
very good result for the first quarter 2003. The sales obtained by
Lenzing Fibers Corporation, our US minority share holding, for the
first quarter were satisfactory, especially in the nonwovens sector.
However, there is some pressure on margins, due to massive increases
in raw-material prices.
Lenzing Technik succeeded in continuing the good development of the
last year. During the first quarter 2003, the level of incoming
orders was altogether positive. Due to cyclical reasons, the market
situation of Lenzing Plastics was unsatisfactory. The income
situation developed according to plan and was once more clearly
positive for the first quarter 2003. The result obtained by Lenzing
Paper was satisfactory.
2002 - The best result in the company's history
The Lenzing Group succeeded in obtaining the best result in the
company's history for fiscal 2002, in spite of the overall difficult
cyclical situation. With sales amounting to EUR 625.6 mill. (after
EUR 622.7 mill. for fiscal 2001), it was possible to clearly improve
all income-related key figures. Income before taxes, depreciation and
amortisation (EBITDA) rose by 19% and amounted to EUR 121.3 mill.,
income from operations (EBIT) went up by 21% and amounted to EUR 78.4
mill.
Outlook: Overall conditions continue to be difficult
Fiscal 2003 will be a difficult year for the fiber industry. The
Lenzing Group will continue, with consistency, on its course of
decoupling itself, as much as possible, from the cyclical business
trend. The noticeable decline in the demand for fibers in Europe, as
well as the dollar exchange rate, which is likely to continue to be
poor, will be aggravating factors in this connection. On account of
the excellent positioning, the consistently improving product mix and
the control over costs which the Lenzing Group exercises, the Board
of Management expects to again obtain satisfactory results for the
coming months.
Important Key Figures for the 1st Quarter 2003
US-GAAP, on a Group basis, in EUR mill.
	                 1-3/2003       1-3/2002
Income from sales 	          150.7	     150.8
EBITDA	                   31.7	     29.5
EBIT	                   20.7	     19.0
Income before taxes 
and minority interest (EBT)	 21.3	     18.9
Net income	          14.8	     11.2
Important Key Figures of the Result for 2002
US-GAAP, on a Group basis
1-12/2002     1-12/2001
Sales in EUR mill.	          626	    623
EBITDA in EUR mill.	 121	    102
EBIT in EUR mill.	           78	    65
EBT in EUR mill.	           72	    65
Please visit www.lenzing.com for further information.
end of announcement        euro adhoc 20.05.2003

Further inquiry note:

Mag. Angelika Guldt Lenzing Aktiengesellschaft, A-4860 Lenzing, Austria Phone:
+43/7672/701-2713 Telefax: +43/7672/918-2713 E-Mail: a.guldt@lenzing.com www.lenzing.com

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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