Raw material and energy price increases were absorbed by fiber price adaptations. All fiber production facilities of the Lenzing Group continue to run at full capacity. Stock levels are at an all-time low, despite continuous production increases. Orders have been booked for many weeks in advance.
Segment Plastics continued its gratifying business development. Three acquisitions of strategic importance (Hahl Group GmbH, assets of Glassmaster und Pedex + Co. GmbH) were realized in the first six months of 2007, making the company a global supplier of monofilament-based industrial brushes with an attractive position in the market.
Another strategic milestone and growth leap was the entry into the business field carbon fibers, a manufacturing material with great economic potential due to its high strength.
Segment Engineering obtained strong order bookings against the background of the good investment climate in the international cellulose and viscose industries and achieved a satisfactory result. There was no change in the result of segment Paper.
The positive general economic situation will continue throughout the second half of 2007. Recent uncertainty in US capital markets has so far had no negative impact on the business segments of the Lenzing Group.
Increased raw material and energy prices can be absorbed by product price increases due to good demand. Cost savings were implemented by internal efficiency increases. The weakening dollar, however, will exert increasing pressure on the European textile fiber market.
Lenzing will continue its course of expansion in the second half of the year as well.The excellent development of segment Fibers and the very good performance of Plastics and Engineering lead us to expect a new record result for 2007, provided there will be no significant change in the global economic climate.