EANS-News: Lenzing AG Lenzing Group: Substantial Earnings Increase in the
First Quarter of 2016
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quarterly report
* Revenue up 8.1 percent to EUR 512.8 mn
* EBITDA improvement of 54.7 percent to EUR 92.2 mn
* Tripling of free cash flow and operating cash flow
* Various sites under evaluation for expanding production capacities of
specialty fibers
Lenzing, May 12, 2016 - The Lenzing Group generated a substantial increase in
earnings in the first quarter of 2016, thus continuing the positive trend that
emerged in recent quarterly periods and achieving the best first quarter results
since the financial year 2012. The resolute implementation of the new group
strategy sCore TEN is reflected in the company's strong operating performance.
Consolidated revenue rose by 8.1 percent in the first quarter of 2016 to EUR
512.8 mn compared to the first quarter of 2015. This increase is mainly
attributable to the strong demand for Lenzing fibers and the higher fiber
selling prices. Consolidated earnings before interest, tax, depreciation and
amortization (EBITDA) rose by 54.7 percent to EUR 92.2 mn. This corresponds to
an EBITDA margin of 18 percent, up from 12.6 percent in the previous year.
Earnings before interest and tax (EBIT) of the Lenzing Group more than doubled
to EUR 59.5 mn. Accordingly, the EBIT margin climbed to 11.6 percent from the
5.7 percent of the prior-year quarter. Net profit for the period and earnings
per share increased almost threefold to EUR 44.1 mn after EUR 16.6 mn and to EUR
1.63 after EUR 0.66 per share. Lenzing also achieved a close to tree-fold
improvement in its cash flow position. The free cash flow was up from EUR 26.5
mn to EUR 88.4 mn, whereas the operating cash flow rose from 37.6 mn to EUR
104.3 mn.
"We are proud that we have got off to a very good start in the year 2016", says
Stefan Doboczky, Chief Executive Officer of Lenzing AG. "The new Group strategy
sCore TEN with its clear focus on profitable growth is taking hold. We are
implementing the strategy very disciplined, which is having a noticeable effect
on earnings already. Initial progress has also been made in managing our trading
working capital. Assuming that the overall business environment remains
unchanged, I continue to expect a substantial improvement in earnings for the
entire financial year 2016."
New organizational structure
A new organizational structure was introduced effective March 1, 2016 in order
to ensure the optimal implementation of sCore TEN. Three regional, performance-
responsible business units were created to more intensively focus on the fiber
business in their respective regions: "Europe & Americas", "North Asia" (China,
Japan, Korea, Taiwan and Vietnam) and "AMEA" (Asia excl. North Asia; Middle East
and Africa). The three regional business units are complemented by the newly
established global "Pulp & Wood" business area. This new organizational
structure gives the regions greater management responsibility and further
increases customer proximity.
Various sites for capacity expansion are being examined
In the first quarter of 2016, investments in intangible assets, property, plant
and equipment (CAPEX) climbed only moderately to EUR 15.9 mn, up from EUR 11.2
mn in the prior-year quarter. However, this is expected to change in the course
of the 2016 financial year. As specified in the sCore TEN strategy, the Lenzing
Group plans to expand its production capacities for specialty fibers. Various
existing and new sites around the world are currently being examined to add new
capacities. Initial decisions are to be made in the third quarter of 2016.
Outlook 2016
The macroeconomic situation around the globe is expected to remain volatile. As
to the global fiber markets high cotton inventories and the ongoing low oil
prices continue to put downward pressure on cotton and polyester selling prices.
However, a balance between supply and demand should prevail in the market
segment of wood-based cellulose fibers. In particular, Lenzing expects a strong
increase in demand for its specialty fibers.
Assuming unchanged conditions on the fiber market and currency exchange rates,
Lenzing feels confident to confirm a substantial improvement in earnings for the
entire financial year 2016 compared to 2015.
Key Group indicators
(IFRS)
in EUR mn 1-3/2016 1-3/2015
Revenue 512.8 474.6
Earnings before interest,
tax, depreciation and 92.2 59.6
amortization (EBITDA)
EBITDA marginin % 18.0 12.6
Earnings before interest 59.5 27.0
and tax (EBIT)
EBIT marginin % 11.6 5.7
Net profit/loss for the 44.1 16.6
period
CAPEX (1) 15.9 11.2
31.03.2016 31.12.2015
Adjusted equity Ratio (2) in % 51.5 50.6
Trading working capital (3) 430.8 447.4
Number of employees at 6,106 6,127
period-end
1) Capital expenditures: Equals acquisition of intangible assets, property,
plant and equipment as per consolidated statement of cash flows
2) Ratio of adjusted equity to total assets as a percentage
3) Inventories plus trade receivables less trade payables
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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