Austria –based fiber company Lenzing, has consolidated its group sales in the first quarter of 2014 fell by 9 per cent as against the same quarter of 2013. EBITDA margin dropped from 13.4 per cent to 10.2 per cent. The effect on net profit was a drop of 6.1 per cent. Fiber production plants are operating at full capacity, However fiber selling prices were almost 12 per cent less than in the same quarter of 2013.
Greater focus on specialty fibers proved successful. Most of all Lenzing generated good sales volumes for its specialty fiber Lenzing Modal, along with a continued attractive price premium compared to standard viscose fibers, thus surpassing the average of 2013. A stable price premium at the same level as in 2013 was also achieved for Tencel.
Lenzing is resolutely marketing its specialty fibers Lenzing Modal and Tencel, ensuring cash optimization. It’s striving to generate cost savings well above €60 million in 2014. These cost reductions are of a structural and sustainable nature and should continue generating comparable savings beyond 2015.
Lenzing has production units in all major markets and supplies to the global textile and nonwovens industry with high quality manmade cellulose fibers. The group registered new record volume sales in the first quarter of 2014.
www.lenzing.com/
