EANS-News

Lenzing AG / Lenzing Group generates solid results in a more demanding market environment

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Quarterly Report

Highlights -

* Revenue down 6.1 percent to EUR 550.3 mn primarily due to currency effects
* EBITDA decline of 24.8 percent to EUR 101.6 mn mainly due to softening prices
for commodity viscose and increasing costs for key raw materials
* Company is intensively pushing ahead with expansion of production capacities
for specialty fibers
* Strong message to consumers - new master brand and new product brands
presented

Lenzing - The Lenzing Group started the 2018 financial year with solid business
results. Revenue and earnings decreased compared to the first quarter of the
previous year against the backdrop of a challenging market environment for
standard viscose combined with changes in currency exchange rates. The corporate
strategy sCore TEN is being implemented with great discipline in order to expand
the company's offering of specialty fibers and even more extensively support
customers and business partners.

Group revenue in the first three months of 2018 decreased by 6.1 percent from
the prior-year quarter to EUR 550.3 mn. This drop is mainly attributable to less
favorable currency exchange rates. Group earnings before interest, tax,
depreciation and amortization (EBITDA) fell 24.8 percent to EUR 101.6 mn mainly
due to softening prices for commodity viscose and increasing costs for key raw
materials. The EBITDA margin decreased to 18.5 percent in the first quarter of
2018 compared to 23 percent in the first quarter of 2017. Earnings before
interest and tax (EBIT) declined by 32.7 percent to EUR 68.9 mn, which resulted
in a lower EBIT margin of 12.5 percent (Q1 2017: 17.5 percent). The net profit
for the period dropped by 33.3 percent from EUR 75 mn in the first quarter of
the previous year to EUR 50 mn. Earnings per share equaled EUR 1.89 (Q1 2017:
EUR 2.75).

"Following the record year of 2017, Lenzing began the expected challenging 2018
financial year with a decline in revenue and earnings. Market headwinds were
clearly noticeable in the first quarter but still we are pleased with the solid
results given the more demanding market environment. At the same time, we are
forging ahead with implementation of our corporate strategy sCore TEN. Expansion
of production capacities for our specialty fibers is also progressing", says
Stefan Doboczky, Chief Executive Officer of the Lenzing Group. "We are convinced