for the year 2014
The track record of the new TENCEL® fiber production plant at the Lenzing site in Upper Austria during the initial six-month ramp-up phase has been a positive one.
Restructuring and Staff Reductions in the Corporate Business Areas Engineering, Maintenance and Lenzing Technik as well as Repositioning of Lenzing Technik
The Lenzing Group is resolutely and systematically counteracting the ongoing difficult market conditions in the global fiber industry on the basis of its cost optimization program as it reported on the occasion of publishing its business results for the first three quarters of 2014. The organizational optimization measures launched one year ago at all sites and in all business areas are having a positive impact. The results achieved up until now are encouraging but by far insufficient to offset the decline in viscose fiber selling prices on the international marketplace.
Lenzing 1-9/2014: Persistently Difficult Market Environment, Cost Savings Measures Positively Impact Results
Q1-3 EBITDA of EUR 159.8 mn (down 16% from the previous year)
Vienna, September 25, 2014 – Friedrich Weninger, Chief Operating Officer (COO) of Lenzing AG, will not extend his Management Board contract which will expire on December 31, 2014. Weninger, who has been working for the company for more than 25 years and recently managed the company’s global production facilities with its more than 6,000 employees, decided for personal reasons that he would not seek a contract extension as a Member of the Management Board. However, he will continue to serve as a consultant for the Lenzing Group in the coming years and put his wealth of experience at the disposal of the company.
New record half-year fiber sales volume with all plants operating at full capacity
Successful start-up of large-scale TENCEL® production plant in Lenzing
Further intensification of the cost optimization program excelLENZ
Significantly lower average fiber selling prices burden consolidated sales and earnings
First sales volumes already successfully marketed
Technological milestone for TENCEL®, the fiber of the future
The TENCEL® production plant secures 140 jobs at the Lenzing site
Investment costs of EUR 150 mn and construction time of 24 months fully on schedule
Within the last few days, serious incidents of identity theft took place in which the Lenzing name was misused in different ways and with fraudulent intent.
Since 2005, about 60 publicly traded Austrian companies are analyzed each year on the basis of about 100 environmental and social criteria. The best companies are accepted for listing in the VÖNIX index (VBV Austrian Sustainability Index) for a period one year.
Due to the very unsatisfactory development of prices on the global market for viscose fibers, the Lenzing Group will be implementing additional cost reduction measures. Today, the Management Board informed employees at the facilities in Lenzing about the necessity of further measures to secure the long-term competitiveness of the Lenzing Group. In relation to this, the Management Board today announced a wide-ranging review of the Group strategy, the results of which should be available by the end of 2014.
Lenzing Group: Difficult Market Situation Continued in Q1/2014 – Countermeasures Have a Positive Impact
New record sales volume of 235,000 tons (+9%) in Q1/2014
Declining average fiber selling prices burden consolidated sales and earnings
Cost optimization program excelLENZ exceeds targets
This year’s Ordinary Shareholders’ Meeting of Lenzing AG (April 28, 2014) resolved to distribute a dividend of EUR 1.75 per share for the 2013 financial year (compared to EUR 2.00 per share for the previous year). The dividend payment has been scheduled for May 5, 2014, with April 30, 2014 set as the ex-dividend day.
With its cellulose fiber TENCEL® Lenzing has responded to the modern-day trend towards high quality wipes and care wipes. TENCEL® is offered as a “short-cut fiber” for the special “flushable” application, and features a length of only a few millimeters. The biodegradable fiber boasts outstanding tenacity and is “flushable” thanks to the short cut. For this reasons wipes made of TENCEL® can be easily disposed of with the wastewater.
Lenzing CEO Peter Untersperger accepted the prize at the INDEX™14, the largest specialized trade fair for nonwovens held in Geneva from April 8-11, 2014
The Supervisory Board of Lenzing AG appointed Thomas Riegler (44) to serve as the company’s new Chief Financial Officer for a period of three years effective June 1, 2014.
European innovation with Lenzing fibers
Eurocel™ is a totally European product. The cellulose fibers being used are manufactured by Lenzing in Austria in an environmentally compatible manner. Eurocel™ is based on the underlying idea of offering a high-quality European product to consumers. Lenzing found a partner in the nonwovens producer Sandler (Germany), which took up the idea of Eurocel™ and developed a new product for its customers.
Ongoing good volume demand, new record sales volumes
Unsatisfactory earnings situation due to very weak fiber selling prices
Initial effects of cost optimization measures already have a positive impact in H1 2014
Following a detailed examination by the independent certification and control institute ECOCERT, the first defined TENCEL® fibers can be stamped with the ECOCERT logo from now on.
The Supervisory Board meeting of Lenzing AG held on January 31, 2014 appointed Mr. Robert van de Kerkhof (49), MBA, to serve as a member of the Management Board for a period of three years as of May 1, 2014.
With a EUR 100m loan, the European Investment Bank (EIB) is co-financing the research and development (R&D) activities and investment in TENCEL® fibre production of Lenzing AG. This company, which specialises in the industrial manufacture of cellulose fibres, is implementing a multi-annual development programme for new, high-quality TENCEL® products. The loan contract was signed by the EIB and Lenzing today in Vienna.