EANS-News: Lenzing AG / Lenzing Group: Substantial Earnings Increase in the First Nine Months of 2016

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9-month report

- Revenue up 8.2 percent to EUR 1,578.4 mn
- EBITDA improvement of 52.2 percent to EUR 320.6 mn
- Operating cash flow doubled to EUR 374.9 mn
- Investment programs for pulp and specialty fibers gain momentum

Lenzing, November 16, 2016 - The Lenzing Group generated a
substantial increase in revenue and earnings in the first nine months
of 2016, compared to the first nine months of 2015. Significant
improvements of cash flow and thus reduction of net debt provide the
basis for further investments and the implementation of the sCore TEN
strategy.

Consolidated revenue rose by 8.2 percent in the first nine months of
2016 to EUR 1,578.4 mn year-on-year. Next to slightly higher sales
volumes it was primarily higher selling prices of all three fiber
generations - Viscose, Modal and TENCEL® - and a more attractive
product mix that contributed to higher revenues. In the third quarter
it was specifically the sharp increase in viscose prices that fueled
the results.

Consolidated earnings before interest, tax, depreciation and
amortization (EBITDA) rose by 52.2 percent to EUR 320.6 mn. This
corresponds to an EBITDA margin of 20.3 percent, up from 14.4
year-on-year. Earnings before interest and tax (EBIT) of the Lenzing
Group almost doubled to EUR 221.7 mn. Accordingly, the EBIT margin
increased to 14 percent from 7.7 percent previously. Earnings before
tax (EBT) totaled EUR 207.1 mn, up 84.2 percent. The net profit for
the period at EUR 162.1 mn was 91.1 percent higher than in the first
three quarters of 2015. As a result, earnings per share increased
84.6 percent to EUR 5.98.

In the first nine months of 2016, the good business development
resulted in a twofold increase in the operating cash flow to EUR
374.9 mn. Next to the very strong operational performance it was
particularly good working capital management that fueled cash
generation. As a consequence key balance sheet indicators further
improved. At the end of September 2016, net financial debt fell to
EUR 64.2 mn (December 31, 2015: EUR 327.9 mn). Net gearing was down
to 4.9 percent from 26.9 percent previously.

The strong balance sheet supports the investment program already
initiated: The expansion of specialty fiber production by 35,000 tons
per year at the Heiligenkreuz, Lenzing and Grimsby sites is already
underway. Investment volume will total about EUR 100 mn. In addition,
pulp production will be modernized in Lenzing and Paskov by 2019,
also at a cost of around EUR 100 mn. This will lead to additional
capacities of approximately 35,000 tons annually.

"The Lenzing Group continues to implement the sCore TEN strategy with
great discipline and the excellent business performance further
helped our already strong balance sheet," says Stefan Doboczky, Chief
Executive Officer of Lenzing AG. "These nine months underpin our
confidence and are an excellent basis for the implementation of our
ambitious growth program."

Outlook The macroeconomic environment remains volatile especially
given the recent political events. Against this background the
fundamentals of the wood-based cellulosic fiber industry should stay
favorable in the mid-term. Lenzing expects however viscose prices to
be notably lower than the high peaks of the third quarter due to
seasonality effects. Under the assumption of unchanged positive fiber
market conditions and foreign exchange rates Lenzing will deliver
excellent business results in the financial year 2016.

Key Group indicators
(IFRS)

(in EUR mn) 01-09/2016 01-09/2015(1)
Revenue 1,578.4 1,458.9
Earnings before interest,
tax, depreciation and 320.6 210.6
amortization (EBITDA)
EBITDA marginin % 20.3 14.4
Earnings before interest 221.7 112.0
and tax (EBIT)
EBIT marginin % 14.0 7.7
Net profit/loss for the 162.1 84.8
period
CAPEX(2) 64.2 44.3

30/09/2016 31/12/2015(1)
Adjusted equity Ratio(3)in % 51,3 50.6
Trading working capital(4) 382,5 447.4
Number of employees at 6,140 6,127
period-end

1) The figures were partially adjusted (for further details please
refer to the "Notes on the Financial Performance Indicators of the
Lenzing Group", available at the following link: http://www.lenzing.c
om/Notes-Financial-Performance-Indicators-Lenzing-Group-2016-Q3). 2)
Capital expenditures: Equals acquisition of intangible assets,
property, plant and equipment as per statement of cash flows. 3)
Ratio of adjusted equity to total assets as a percentage. 4)
Inventories plus trade receivables less trade payables.

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Further inquiry note:
Lenzing AG
Mag. Waltraud Kaserer
Vice President Corporate Communications & Investor Relations
Tel.: +43 (0) 7672 701-2713
mailto:w.kaserer@lenzing.com

end of announcement euro adhoc
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company: Lenzing AG

A-A-4860 Lenzing
phone: +43 7672-701-0
FAX: +43 7672-96301
mail: office@lenzing.com
WWW: http://www.lenzing.com
sector: Chemicals
ISIN: AT0000644505
indexes: WBI, ATX, Prime Market
stockmarkets: official market: Wien
language: English

Original-Content von: Lenzing AG, übermittelt durch news aktuell