Lenzing is a leading manufacturer of man-made cellulosic fibers has seen substantial increase in earnings in the first quarter of 2016, achieving the best first quarter results since the financial year 2012. Net profit for the period increased almost threefold. Lenzing also achieved close to a three-fold improvement in its cash flow position.
Consolidated revenue rose by 8.1 per cent in the first quarter of 2016 compared to the first quarter of 2015. This increase is mainly attributable to the strong demand for Lenzing fibers and higher fiber selling prices. Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) rose by 54.7 per cent. This corresponds to an EBITDA margin of 18 per cent, up from 12.6 per cent in the previous year. Earnings before interest and tax (EBIT) more than doubled. Accordingly, the EBIT margin climbed to 11.6 per cent from the 5.7 per cent of the prior-year quarter.
Assuming that the overall business environment remains unchanged, Lenzing continues to expect a substantial improvement in earnings for the financial year 2016. It plans to expand its production capacities for specialty fibers. Various existing and new sites around the world are currently being examined to add new capacities.