10 May 2012 08:39 [Source: ICIS news]
SINGAPORE (ICIS)--Lenzing’s net profit fell by 27.7% year on year to €48.4m ($62.9m) in the first quarter of this year amid lower average fibre prices, the Austrian cellulosic fibres, plastics and engineering group said on Thursday.
The company’s sales slipped by 0.7% year on year to €528.2m in the first quarter, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 19% to €93.1m, the company said in a statement.
Average selling prices of the company’s fibre products were 11% lower on average compared with the first quarter of 2011, the company said.
The market environment for the global fibre industry during the first quarter of this year “was more difficult” than the same period in 2011 and similar to the situation prevailing in the fourth quarter of last year, said Lenzing CEO Peter Untersperger.
“At present the global fibre market is facing a consolidation phase at a higher level,” Untersperger said.
“In the first three months of 2012, Lenzing succeeded in maintaining the capacity utilisation of its production plants at over 95%, whereas volume demand on the market for fibres adapted to the weak economic situation,” Untersperger added.
Depending on the development of fibre and raw material prices as well as the global economy, Lenzing said that it expects to register EBITDA of €400m-480m in the full-year period of 2012, and earnings before interest and taxes (EBIT) of €285m-365m.
($1 = €0.77)
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