22 August 1994 00:00 [Source: ICB]
LENZING OF AUSTRIA anticipates a 'clearly positive' operating result for fibres and an improvement in the paper division in the second half of 1994. Though it concedes that the operating result for paper is still likely to be negative.
In the second half, the company is also expected to take its final decision on the commercialisation of its lyocell fibre and to give the go-ahead for the construction of a third production line with a 30 000 tonne/year capacity at South Pacific Viscose/Indonesia.
In the first six months, Lenzing operating profit rose 163.4% to Sch130.9m ($11.75m) from Sch49.7m on sales that dropped 3.7% to Sch4.1bn from Sch4.2bn. The development of international fibre markets was predominantly positive in the first six months. This was mainly attributed to the strengthening of cotton prices as a result of recent poor harvests.
In Europe, the viscose fibre market was shaped by the general economic recovery and the return of a more favourable climate within the textile industry.
Fibre prices could be increased for the first time since 1991 albeit at initially modest levels.
Demand in the Far East continued to rise while the weakening of the US viscose fibre market continued, particularly towards the middle of the year.
In Lenzing's non-fibre-specific areas, the first half went according to expectation. 'Very satisfactory and better than planned' results were achieved in the areas of film and high performance products.
Lenzing Technik recorded a positive result while plastic machinery was slightly negative. The price recovery improved the situation for paper but the significant increase in the prices of the raw materials pulp and waste paper had a negative impact.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
Sample issue >>
My Account/Renew >>
Register for online access >>
|ICIS Top 100 Chemical Companies|
|Download the listing here >>|
Asian Chemical Connections