06.11.2019,
10106 Zeichen
Corporate news transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is responsible for the content of this announcement.
Financial Figures/Balance Sheet/Quarterly Report/Company Information
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Continued positive development of the specialty fiber business with a share in revenue of 49.8 percent\nFocus on expanding specialty fiber and dissolving wood pulp capacities in line with the sCore TEN strategy\nGrowing trade conflicts put the textile value chain under pressure - standard viscose prices at a historic low\nInvestments of EUR 100 mn to achieve ambitious climate targets\nLenzing - The Lenzing Group continued its solid business development in the
third quarter of 2019 despite a significantly more challenging market
environment. The consistent implementation of the sCore TEN strategy and the
focus on specialty fibers again had a positive impact. As a result, the decline
in revenue and earnings in the first three quarters of 2019 due to the
historically low standard viscose prices was mitigated.
Revenue of the Lenzing Group developed at a similar level to the prior-year
period and amounted to EUR 1.62 bn (minus 1.1 percent), despite the steep
decline in prices for standard viscose. However, based on a further product mix
optimization and higher prices for specialty fibers, the decrease in revenue was
largely offset; the share of specialty fibers in revenue, at 49.8 percent,
significantly exceeded the prior-year value of 44.1 percent. EBITDA (earnings
before interest, tax, depreciation and amortization) dropped by 8.1 percent to
EUR 266.9 mn, primarily due to the market environment for standard viscose,
leading to a lower EBITDA margin of 16.5 percent compared with 17.8 percent in
the first three quarters of the previous year. EBIT (earnings before interest
and tax) fell by 19.3 percent to EUR 153.5 mn. The EBIT margin dropped to 9.5
percent (from 11.6 percent in the comparative period). Net profit decreased by
15.6 percent to EUR 112.9 mn. Earnings per share amounted to EUR 4.41 (01-09/
2018: EUR 5.06).
"Lenzing is very well positioned due to its strategic orientation and its strong
focus on specialty fibers. This is reflected, more than ever, in the current
market environment, which is marked by trade conflicts and historically low
prices for standard viscose. This uncertainty can be felt throughout the textile
value chain and leads to significantly more sluggish demand. Thanks to the
performance of our specialty fibers, we have nevertheless been able to achieve a
solid result", says
Stefan Doboczky, Chief Executive Officer of the Lenzing
Group. "While the profit situation of many companies in the textile value chain
is challenging, we are still optimistic thanks to our specialty strategy and
expect a satisfactory result for the full year", Doboczky adds.
CAPEX (investments in intangible assets and property, plant and equipment)
dropped by 8.3 percent to EUR 159.7 mn during the reporting period. This decline
is primarily attributable to the completion of the expansion project in
Heiligenkreuz in 2018 and the ongoing planning for major projects in Brazil and
Thailand, which will only have an effect on the investment volume in the coming
quarters. In the first three quarters of 2019, investment activities in the
Lenzing Group focused on the expansion of the share of specialty fibers in line
with the sCore TEN strategy.
Zwtl.: Expansion of specialty fiber capacities
Lenzing puts the focus on stable and profitable growth as well as an improvement
of the ecological footprint of the textile and nonwovens industries by expanding
the production of specialty fibers. The decision to build a state-of-the-art
lyocell plant with a capacity of 100,000 tons in Prachinburi (Thailand) is the
next logical step to achieve this goal. In the third quarter, Lenzing chose Wood
Plc as a general contractor for detailed engineering, purchasing and
construction management and supervision.
In addition, the conversion of the production capacities from standard viscose
to LENZING(TM) ECOVERO(TM) branded specialty viscose fibers was also continued
during the reporting period. Thanks to their excellent ecological footprint and
their leading-edge identification technology, LENZING(TM) ECOVERO(TM) fibers
have been very well received by the market.
Zwtl.: Expansion of pulp capacities
Increasing the self-supply with dissolving wood pulp is another key element of
the sCore TEN strategy. Lenzing and the Brazilian company Duratex continue to
advance the construction of a 450,000-ton dissolving wood pulp plant in the
state of Minas Gerais (Brazil). The basic engineering, site grading and the
applications for required permits are proceeding according to plan.
In addition, the expansion and modernization of the pulp plant in Lenzing were
completed in the third quarter. Lenzing invested EUR 60 mn, increasing the
production capacity for dissolving wood pulp to 320,000 tons per year.
Zwtl.: Transparency from wood to garment
Lenzing will use blockchain technology to support its TENCEL(TM) branded fiber
business, ensuring complete transparency and traceability for brands and
consumers of its fibers in the finished garment. In the second quarter Lenzing
announced a cooperation with the technology company TextileGenesis(TM) to
accomplish this ambition; in the third quarter, Lenzing presented its first
pilot project at the Hong Kong Fashion Summit.
The TENCEL(TM) brand's visibility was further increased through co-branding
during the reporting period. Compared to the same period of 2018, the number of
end products labeled with the TENCEL(TM) brand increased from 41 mn to 102 mn.
The digital marketing concept "Where to buy" was introduced on the product
website www.tencel.com [http://www.tencel.com] in the first quarter of 2019.
Based on this concept, products made from TENCEL(TM) fibers can be presented and
linked in the online shops of more than 110 partners, including brands like H&M,
Levi's, Allbirds, Victoria Secret, Esprit, Pottery Barn and Asos.
Zwtl.: Ambitious climate targets
Lenzing invests more than EUR 100 mn in energy-saving measures, the conversion
to renewable energies and in new technologies, thus strengthening its position
as a front runner in climate protection both in the production industry and in
particular also in the fiber industry. In the second quarter Lenzing announced
its ambitious climate strategy. The goal is to reduce net emissions of
greenhouse gases to zero by 2050. An important milestone on the way to becoming
climate-neutral is set for the year 2030. By then Lenzing has committed to
reduce emissions per ton of fibers and pulp by 50 percent compared with 2017.
Zwtl.: Outlook
The International Monetary Fund expects a slowdown of global economic growth to
3 percent in 2019, mainly driven by increasing protectionist tendencies and
growing geopolitical tensions. The currency environment in the regions relevant
to Lenzing will remain volatile.
Global fiber demand has weakened. Trade conflicts have caused nervousness and
declining demand throughout the textile value chain. According to preliminary
calculations, cotton inventory levels will continue to increase in the 2019/20
season because a good harvest is expected. The price levels for cotton and
polyester are expected to remain subdued. Capacity expansions for standard
viscose, coupled with sluggish demand due to the trade conflicts, caused higher
pressure on prices, which fell to a new historic low in the third quarter of
2019. In specialty fibers, the Lenzing Group expects a comparatively positive
development of its business.
Driven by the challenging situation in standard viscose and low paper pulp
prices, prices for dissolving wood pulp remain on a comparatively low level.
Caustic soda prices in Asia have already declined significantly over the past
months; this development is now also noticeable in Europe.
The very challenging and volatile market environment in general, paired with
erratic developments in the trade disputes between the major economic blocks
plus the high level of uncertainty in the textile value chain, significantly
impacts earnings visibility. Based on the above mentioned economic environment,
the Lenzing Group expects the result for 2019 to be slightly below the level of
2018.
Above developments reassure the Lenzing Group in its chosen strategy sCore TEN.
Lenzing is very well positioned in this market environment and will continue to
focus growth with specialty fibers.
Key group indicators
(IFRS) 01-09/2019 01-09/2018
(in EUR mn)
Revenue 1,617.9 1,636.2
Earnings before interest,
tax, depreciation and 266.9 290.6
amortization (EBITDA)
EBITDA margin in % 16.5 17.8
Earnings before interest 153.5 190.3
and tax (EBIT)
EBIT margin in % 9.5 11.6
Net profit for the period 112.9 133.8
CAPEX(1) 159.7 174.1
30.09.2019 31.12.2018
Adjusted equity ratio(2) 55.5 59.0
in %
Number of employees 6,988 6,839
1) Capital expenditures: acquisition of intangible assets, property, plant and
equipment as per statement of cash flows
2) Ratio of adjusted equity to total assets in percent
Photo download:
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end of announcement euro adhoc
issuer: Lenzing AG
A-4860 Lenzing
phone: +43 7672-701-0
FAX: +43 7672-96301
mail: office@lenzing.com
WWW: http://www.lenzing.com
ISIN: AT0000644505
indexes: WBI, ATX
stockmarkets: Wien
language: English
Digital press kit: http://www.ots.at/pressemappe/1597/aom
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Lenzing
Akt. Indikation: 31.95 / 32.10
Uhrzeit: 22:59:14
Veränderung zu letztem SK: -0.08%
Letzter SK: 32.05 ( -0.77%)
Bildnachweis
1.
Stefan Doboczky (Lenzing), Christine Petzwinkler (BSN) - Number One Awards 2018 - Nachhaltigkeit Lenzing
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