• H1 earnings climbed to EUR51.6m (US$59.2m)
  • Sales rose 6.2% to EUR955.4m
Lenzing said the market for man-made cellulose fibre industry improved in H1

Lenzing said the market for man-made cellulose fibre industry improved in H1

Lenzing has booked higher first-half earnings and sales but warned on the economic situation in China and exchange rate fluctuations for the remainder of the year.

The Austrian cellulosic fibre producer booked earnings of EUR51.6m (US$59.2m) in the six months to the end of June. This compared to EUR15.2m a year earlier.

Consolidated revenue rose 6.2% to EUR955.4m from EUR900m thanks to good fibre demand, positive currency effects, slightly higher sales volumes and an improved product mix.

Lenzing said the specific market environment for the man-made cellulose fibre industry improved somewhat in the middle of 2015 compared to the end of the first quarter. Solid volume demand up until now was followed by initial fibre selling price increases. The troubled geopolitical situation, the economic situation in China and unforeseeable exchange rate fluctuations are factors of uncertainty in the second half of 2015, the company said.

Chairman and CEO Stefan Doboczky, added: “Viscose fibre prices in China, the world’s largest sales market for fibres, increased towards the end of the second quarter due to a more favourable supply-demand ratio related to several local viscose fibre production plants being shut down for environmental reasons. We remain cautious concerning prospects for the rest of 2015, in light of the fact that these capacities could be put into operation again.”

Despite the volatile environment, Lenzing said it expects a further improvement in its operating results compared to 2014 as well as a further reduction in its net financial debt. Medium- and long-term growth rates in the man-made cellulose fibre industry are expected to be higher than that of the global fibre market, it said.