AUSTRIA: Lenzing bullish despite 17% FY profit dip
- FY profit down 17% to EUR64.4m
- Sales down 6% to EUR1.25bn
- Expects strong demand from emerging markets in 2010
Fibre manufacturer The Lenzing Group is optimistic about its prospects in 2010 despite a 17% dip in 2009 full-year profit to EUR64.4m (US$88.7m).
Weaker fibre prices led to a 6% fall in sales to EUR1.25bn, while EBITDA slid 9.3% to EUR182m.
Fibres continued to dominate the Austrian group’s sales picture, taking an 86% share of revenues despite a 1.6% fall to EUR1.09bn.
“Our policy of supplying our customers with fibres even at temporarily unsatisfactory profit margins, of counting on an early recovery and of making optimum use of this recovery right from the start, fully paid off in 2009,” said company chairman Peter Untersperger.
“We gained share of supply, launched innovative product applications and set the course for further expansion.”
Management board member Friedrich Weninger added that the company had been able to implement price increases from the second quarter of 2009, while its special product segment had not been badly affected by price declines.
Lenzing said it expected fibre production to reach full capacity in 2010, bringing positive results thanks to “continuing good demand, especially from the emerging markets”.
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