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Lenzing sales for first nine months decline 7.7%

Despite unfavourable market conditions, Lenzing Group, the world’s leading producer of man-made cellulose fibres, achieved results in line with expectations in the first three quarter of 2013. This can be attributed to the counter measures which are already underway.  The consolidated sales amounted to €1,447.0 million, a decline of 7.7 per cent from the comparable level of €1, 567.5 million in the previous year. Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) continued to be at a good level, amounting to €223.8 million in the first nine months of 2013, a drop of 20.5 per cent from the prior-year figure of €281.5 million.

This comprised an EBITDA margin of 15.5 per cent (Q1-3/2012: 18.0 per cent). Earnings before interest and tax (EBIT) in the first nine months of the year fell by 33.0 per cent to €136.4 million.

In the light of the ongoing difficult market situation, Lenzing has decided to proactively implement a massive, far-reaching cost optimization program. The initiative will enable cost savings of €120 million per annum until 2015 as a means of safeguarding Lenzing’s cost leadership on the global market for man-made cellulose fibers. In this way Lenzing is responding to the current difficult market environment, which has led to increasingly fierce price competition.