- Prachi Singh |
In the first half of 2018, Lenzing Group revenues declined by 6.4 percent to 1,075.4 million euros (1,249.8 million dollars), which the company attributed to less favourable currency exchange rates. EBITDA for the period, Lenzing said, decreased by 28.1 percent to 194.8 million euros (226.4 million dollars), due to price increases for key raw materials and higher energy prices. The EBITDA margin fell from 23.6 percent in the first half of 2017 to 18.1 percent in the first half of 2018, while EBIT declined by 37 percent to 128.7 million euros (149.5 million dollars), leading to a lower EBIT margin of 12 percent.
“So far, the financial year 2018 proved to be as challenging as expected, and market headwinds were clearly noticeable. We are proud that with our corporate strategy “Score Ten” and the focus on growth with specialty fibers we show big steps in the right direction. The recently announced joint venture with Duratex is another important step in executing this corporate strategy,” said Stefan Doboczky, Chief Executive Officer of the Lenzing Group in a statement.
The net profit for the period dropped by 39.3 percent from 150.3 million euros (174.8 million dollars) in the previous year to 91.3 million euros (106 million dollars). Earnings per share equalled 3.44 euros (4 dollars) compared to 5.55 euros (6.45 dollars) in H1 2017.
Picture credit:Lenzing media gallery