Austria: Lenzing upbeat about 2010 despite 2009 earnings crash

Austrian fibre producer Lenzing AG is still upset about its performance in the year ahead as prices have been on the rise despite its 2009 figures were worse than in 2008 due to the economic slowdown.

Lenzing said its earnings before interest and taxes had declined by 23% year on year to 100.7 million Euros and its earnings before interest, taxes, deprecation and amortisation had fallen by 9.3% year on year to 182 million in 2009.

Turnover fell from 1.255 billion Euros in 2008 to 1.255 billion Euros in 2009, and debt declined from 365.4 million Euros in 2008 to 315.7 million Euros in 2009.

However, the company foresaw an increasing demand and higher prices would mean better results in 2010 as prices had begun to increase in the second quarter of last year after plunging at the end of 2008.

According to board chairman Peter Untersperger, the company had won new suppliers, brought new, innovative product applications to the market and paved the way for future growth.

He also noted that, despite the introduction of a cost-cutting programme, Lenzing had invested 20 million Euros in research, development and innovation in 2009.