EANS-Adhoc: Lenzing AG / Lenzing Group: Third quarter 2010 best quarter in company history

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quarterly report

16.11.2010

New record result expected for 2010

The Lenzing Group extended its strong upward development of the first
half year into the third quarter of 2010. EBIT of EUR 60.8 mill.
(third quarter 2009: EUR 37.3 mill.) generated the best quarterly
result in the company's history. Nine-months sales in 2010 grew by
45.2 % from EUR 885.0 mill. (2009 reference period) to EUR 1.285.5
mill. EBIT reached a new nine-month record high of EUR 168.8 mill.
and more than tripled EBIT of the 2009 reference period (EUR 54.3
mill.).

The reason for the strong growth of sales and results lies in the
significantly improved business development of cellulose fibers which
turned out to be far better than expected still at mid year. Higher
shipments as a result of increased production capacity, a fiber price
level improved over last year's and the full consolidation of the
Paskov pulp factory from May 2010 on yielded correspondingly positive
results. Sales excluding acquisition effects grew by 37.7 %.

Peter Untersperger, chairman of the Lenzing management board comments
on the development of the business: "We are facing a growing and
sustainable excess in demand in all important fiber markets". In
addition, the floods in Pakistan and India recently caused the global
textile fiber market to expect a significant physical shortage of
cotton and triggered a distinct increase in cotton prices.

Peter Untersperger: "The calamitous weather situation in Pakistan and
India has led to rethinking. Cotton will in the future be viewed with
ever increasing doubt concerning the crop's pricing and availability.
Market analysts therefore expect a structural change of the global
fiber market which should strongly benefit cellulose man-made fibers,
such as viscose, modal and TENCEL® in the medium and long term."

All fiber production sites of the Lenzing Group were fully utilized
and partly achieved new records in production and shipment. The
increase in raw material prices was largely, but not fully passed on
to the market. The ongoing capacity expansion programs at almost all
fiber production sites will relieve the demand-driven pressure on
production in the course of 2011/12 to a certain extent.

Outlook The fourth quarter, too, is expected to show a continuation
of the dynamic market development and excellent results in its core
business fibers. Lenzing's fourth-quarter fiber capacity has been
largely sold already. Lenzing will continue its long-term and fair
pricing policy of the recent months and years, even under the given
positive framework conditions. A product mix further improved by
favoring special fibers with attractive margins, increased fiber and
pulp production capacity and a very good internal cost structure
allow the expectation that business year 2010, despite the currently
tight raw material price situation, will provide a new record result
for the Lenzing Group.

Consolidated key figures (IFRS)
in EUR mill. 1-9/2010 1-9/2009
Consolidated sales 1,285.5 885.0
EBITDA 233.6 109.6
EBIT 168.8 54.3
EBT 161.0 44.4
Period net income 128.0 30.6
EBITDA margin in % 18.2 12.4
EBIT margin in % 13.1 6.1
Gross cash flow 194.2 87.3
Investments (intangible assets, property,
plant and equipment) 118.2 120.1
30/09/10 31/12/09
Adjusted equity ratio* in % 39.9 43.5
Staff 6,456 6,021

*Equity incl. government grants less prop. 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) 07672-918-2713

mailto:a.guldt@lenzing.com

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