Tencel sales drive Lenzing’s second-best annual results
22/03/2013
It reported EUR 2.09 billion in sales for the year, driven by the strong performance of its specialty fibre Tencel and record new fibre sales, although the overall figure was 2.3% down on last year.
“We performed quite well in 2012 despite a very difficult market environment,” said Lenzing CEO Peter Untersperger. “Naturally, our operating margins were below those in 2011 but still at a good level.”
The company attributed the decline to the fact that more dissolving wood pulp from its Paskov pulp plant was used internally than in 2011. Adjusted for this, consolidated sales remained constant. The lower average selling prices compared with 2011 (in line with a significant decrease in prices for all fibres globally) were compensated by a rise in sales volumes, which climbed by 14%, from 712,000 tons to 810,000 tons.
During the year, Lenzing’s investments reached a record EUR 346.2 million and included the completion of a fifth production line at its Indonesian subsidiary, South Pacific Viscose; the debottlenecking programme at its plant in Nanjing, China; capacity expansion in the Tencel factory in Mobile, US; and the commencement of a large-scale Tencel plant in Lenzing.
Worldwide production of man-made cellulose staple fibres, the core business of the Lenzing Group, climbed 9.2% in 2012 to 3.66 million tons, expanding at a considerably faster rate than the global fibre market as a whole.
Friedrich Weninger, chief operating officer, said: "Our specialty fibres Modal and Tencel enabled us to differentiate ourselves from standard products manufactured by Asian producers. In addition, we attracted new customers and opened up new markets while launching innovative fibre applications.”
Lenzing said it anticipates a “sideways trend” for 2013, taking into account market conditions.
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