Record sales of cellulosic fibres to both the textiles and nonwovens sectors saw Lenzing’s turnover soar above €2 billion for the first time in 2011.

Despite a significant weakening of the global fibre market in the second half of 2011, Lenzing once again achieved double-digit growth in sales and earnings. Consolidated sales climbed by 21.2% to €2.14 billion, up as a result of higher average fibre selling prices and shipment volumes, in addition to full-year consolidation of the Biocel Paskov pulp plant acquired in May 2010.

Consolidated EBITDA (earnings before interest, tax, depreciation and amortization) were €480.3 million, a rise of 45.3% year-on-year, while earnings before interest and tax (EBIT) climbed by 56.9% to €364 million.

“Our dynamic growth path and speciality strategy led by the fibres Modal and Tencel once again paid off in 2011.,” said CEO Peter Untersperger. “Whereas sales of standard viscose increased by close to 20% year-on-year, we sold some 30% more Tencel fibres and close to 40% more Modal.”

The large-scale market success of these two speciality fibere enabled Lenzing to partially detach itself from the volatile market trends of 2011, he added.

Lenzing also pressed ahead with its capacity expansion programme in 2011. As a result, the annual nominal production capacity of the Lenzing Group rose by about 8%, from 710,000 tons of cellulose fibres at the beginning of 2011 to 770,000 tons at the turn of the year 2011/12.

Capital expenditures in 2011, however, were €196.3 million in the 2011 financial year, compared to 230 million in 2012, which included the acquisition costs for Biocel Paskov.

Throughout the year Lenzing succeeded in raising average prices by close to 17% compared to the previous year, to €2.22 per kilogram.

“All our fibre production facilities were running at full capacity throughout the entire year,” said COO Friedrich Weninger. “The additional fibre volumes generated in the course of the year by the second expansion stage of the plant in Nanjing (China), the capacity expansion for Lenzing Modal fibers produced at the Lenzing site and Tencel manufactured at the Heiligenkreuz (Burgenland) facility were very successfully placed.

The Biocel Paskov pulp plant in the Czech Republic was also rapidly to enable the production of both paper pulp and dissolving pulp. Some 60,000 tons of dissolving pulp were produced in Paskov in 2011 and largely used for fibre production within the Lenzing Group.

Lenzing Group expects another good year in 2012, although margins are unlikely to be match the exceptional record year of 2011.
Lenzing anticipates a higher price level than at present later in the year as a result of rising demand for both textile and nonwoven applications.