EANS-Adhoc: Lenzing AG / Lenzing Group third quarter: Again improved results

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quarterly report

09.11.2009

Rising demand for cellulose fibers - production capacity almost fully
utilized at all sites

The Lenzing Group´s positive business development of the second
quarter continued into the third quarter, due to improving demand for
cellulose fibers. The considerable impact of the global economic
crisis, however, left a distinct mark on the company´s first quarter
figures and therefore burdened the sales and results figures of the
first nine months of 2009.

Consolidated sales in the first nine months of 2009 declined by 10%
from EUR 1,012.1 mill. (reference period 2008) to EUR 912.3 mill. The
quarter-to-quarter comparison, however, shows almost unchanged sales
figures (EUR 322.4 mill. in the third quarter 2009 compared to EUR
322.6 mill. in the reference period 2008). This indicates that
business development has stabilized in the second quarter of the
year.

Nine-month EBIT came to EUR 51.7 mill. (2008: EUR 107.1 mill.). The
quarter-to-quarter comparison actually shows a slight improvement of
EBIT from EUR 35.0 mill. to EUR 36.3 mill. Likewise, period net
income improved to EUR 24.6 mill. (2008: EUR 16.0 mill.).

Peter Untersperger, chairman of the management board, was pleased to
announce: "In the third quarter Lenzing made optimum use of the
continuing stabilization of the global fiber market. We are running
production at all sites at almost full capacity and the market has
accepted first price increases. After the positive second quarter our
results have again improved in the third quarter."

At the end of the third quarter of 2009 the Lenzing Group employed a
staff of 5,881 (31/12/2008: 5,945). This decline is above all due to
capacity adjustments in segment Plastics due to the general economic
situation. During the same period Lenzing´s majority holding PT.
South Pacific Viscose hired 70 people for operating the new
production line 4.

Rising demand in segment fibers

By the end of the second quarter latest Lenzing was operating fiber
production almost at full capacity at all sites. At the same time
rising demand led to a significant reduction in stock. First price
increases were accepted by the market. From the second quarter on,
business unit Textile Fibers again managed to achieve very good sales
results for standard fibers as well as for special fibers, such as
Lenzing Modal®, flame retardant Lenzing FR® and TENCEL®. The
production facilities for textile applications have been well
utilized for many weeks now. The development of business unit
Nonwoven Fibers was characterized by a recent significant rise in the
demand for cellulose nonwovens products at slightly rising fiber
prices. Fear of a new influenza wave, for example, led to increased
demand for hygienic wipes and medical face masks.

First signs of recovery in segment Plastics, stable development of
segment Engineering

The business development of segment Plastics in the first nine months
of 2009 was affected by the massive decline in demand in all markets
due to the state of the general economy. The summer months brought
first signs of recovery, in particular in the construction industry.

The business development of segment Engineering in the first nine
months of 2009 was stable. The segment benefited in particular from
last years´ high order bookings and current intra-group investment
projects.

Outlook

Lenzing takes a cautiously positive view of its business development
for the remainder of the year. All in all, the development of the
2009 fiber market has been better than expected. The positive trends
in Asia, Turkey and South America may continue. There is, however, a
danger of stock building up in the textile chain and any forecasts
beyond the turn of the year are therefore uncertain. Moreover,
anti-dumping procedures in Brazil and India are expected to
significantly slow down sales of products containing Lenzing fibers.

Consolidated company key figures
in EUR mill. 1-9/2009 1-9/2008
Consolidated sales 912.3 1,012.1
EBITDA 108.4 160.1
EBIT 51.7 107.1
EBT 41.3 88.7
Net income attributable to shareholders 29.3 62.0
EBITDA margin in % 11.9 15.8
EBIT margin in % 5.7 10.6
Gross cash flow 87.3 120.4
Investment in property, plant and
equipment and intangible assets 121.3 108.9

7-9/2009 7-9/2008
Consolidated sales 322.4 322.6
EBIT 36.3 35.0

30/09/2009 31/12/2008
Adjusted equity ratio* in % 41.2 42.7
Staff 5,881 5,945

*Equity including government grants less proportionate deferred taxes

end of announcement euro adhoc
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ots Originaltext: Lenzing AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Lenzing AG

Mag. Angelika Guldt

Tel.: +43 (0) 7672-701-2713

Fax: +43 (0) 07672-96301

mailto:a.guldt@lenzing.com

Branche: Chemicals
ISIN: AT0000644505
WKN: 852927
Index: WBI
Börsen: Berlin / free trade
Wien / official dealing