In spite of pricing pressure on viscose fibers Lenzing Group again succeeded to post satisfactory result for the first half of 2005. Consolidated sales of the Lenzing Group rose by 14% to EUR 464.4 million as compared to EUR 407.3 million for the same period last year due to the consolidation of Tencel and increased production. However, EBIT (Income from operations) increased by only 4.4 percent to EUR 50.2 million, compared to EUR 48.0 million for the first half of 2004 due to higher depreciation. Company says that the sharp fall in Cotton prices and new production
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| capacities in China has resulted a decline in VSF prices and demand. Lenzing has tackled these weak market conditions by diverting production capacity from Textile fibers to Nonwoven fibers. Simultaneously, the product mix of Textile fibers was enhanced further in favor of high-end products. This enabled Lenzing in the first half of 2005 to operate all its fiber production units at full capacity, opposing the market trend, to maintain its cost advantage and to even significantly increase fiber production.
However, company express it's concern over the difficult market conditions for viscose fiber even for the second half of 2005. 
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