Total sales for the second quarter grew by 2.3% to ?44m compared with the previous three-month period, while its earnings before interest, tax, depreciation and amortisation (EBITDA) were up by 15% to €133m, it added.
The company said that the earnings increase was fuelled by considerably higher fibre prices compared with the same period last year.
“Our global growth strategy together with our intensified specialisation in high-value fibres such as Lenzing Modal and TENCEL, for which we have a unique position in the market, has really paid off,” said Lenzing CEO Peter Untersperger.
On the back of its strong second-quarter earnings, Lenzing said it expects consolidated sales of €.1bn-2.2bn for 2011.
The company’s EBITDA for 2011 is expected to be in the range of €470m-500m.
“A decisive underlying factor is the very good business development of the Lenzing Group in the second quarter of 2011, which exceeded expectations,” the company said.
Lenzing’s net income for the first half of 2011 nearly doubled to €145.3m, compared with €77.1m in the same period a year earlier, as sales rose by 31% year on year to ?.08bn on the back of higher fibre prices.
The company said that higher fibre shipment volumes and the consolidation effects of the acquisition of a pulp plant had also helped to improve earnings.
EBITDA for January to June 2011 rose by 65% year on year to €47.8m, the company added.
Meanwhile, Lenzing expects its global fibres capacity to grow to 1.03bn tonnes/year in 2014 compared with 710,000 tonnes/year in 2010.
Earlier in August, Lenzing started up a 60,000 tonne/year viscose fibre production line in Nanjing, China, bringing its capacity there to 140,000 tonnes/year.
($1 = €0.70)
