From the Sector

• Revenue up 11 percent to EUR 1,149.1 mn
• EBITDA increase of 38.8 percent to EUR 270.7 mn
• Detailed planning for new production plant for TENCEL® fibers in Thailand in Progress
• New sales offices opened in Turkey and Korea
• New EcoVeroTM branded viscose fibers with very favorable ecological footprint launched

The Lenzing Group generated new record highs in the first half of the 2017 financial year for both revenue and earnings. The key underlying factors were good capacity utilization, higher selling prices and an attractive product mix. Lenzing will continue to focus on the disciplined implementation of the Group strategy sCore TEN, in order to be even closer to the customer and to further expand the offering of specialty fibers.

Consolidated revenue increased by 11 percent from the first half of the previous financial year to EUR 1,149.1 mn. Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) were up 38.8 percent to EUR 270.7 mn, corresponding to an EBITDA margin of 23.6 percent in comparison to 18.9 percent in the prior-year period. Earnings before interest and tax (EBIT) increased by 57.4 percent to EUR 204.2 mn, resulting in a higher EBIT margin of 17.8 percent (H1 2016: 12.5 percent). The profit for the period improved by 58.9 percent to EUR 150.3 mn, and earnings per share climbed 59 percent to EUR 5.55 per share.

“The first half-year developed very well for the Lenzing Group, and we are pleased with the best half-year period in the company’s history. We will continue our disciplined implementation of the sCore TEN strategy. The expansion of new state-of-the-art production capacities for our specialty fibers is proceeding well and will support our customers in their own expansion efforts for products made of our botanic fibers. The decision to set up a subsidiary and acquire a respective landplot in Thailand is the next step in the implementation of this strategy. On the innovation side we are proud that after the introduction of RefibraTM branded lyocell fibers, we launched now EcoVeroTM. This is a particularly high-performance fiber featuring a very favorable ecological footprint and sets the new benchmark for the entire industry – from fiber to garment”, states Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “Assuming that fiber market conditions remain at current levels, we expect a substantial earnings improvement in 2017 compared to 2016.”

Lectra has leveraged more than 10 years of experience in connected manufacturing to offer Versalis®, an innovative digital solution designed to cut leather without compromise on quality. Featuring a powerful automatic nesting system for overall improvements in efficiency, the fully automated solution enables automotive leather suppliers to cut costs, improve productivity and minimize waste while also establishing a pathway to value-added Industry 4.0 processes.

Currently, almost 90% of leather used for automotive applications is cut using manual die presses, which require designers to build a physical prototype and finalize the design through trial and error. Lectra offers a fully digitalized leather solution from prototyping to cut parts—when used in combination with Lectra’s 3D prototyping and pattern-making software, Versalis digital leather cutting solution enables a 12-16 week reduction in development and launch cycles for vehicle seating models.
During the leather-cutting phase, the latest release of Versalis LeatherSuite allows automotive leather suppliers to achieve up to 15% greater productivity. Lectra’s end-to-end automotive leather offering furthermore guarantees optimal uptime through an extensive worldwide support network of field engineers and technical experts.
"Lectra focuses on a consultative approach that allows it to fully understand the customer’s needs before building a solution comprising software, hardware, consulting, training, and after-sales support,” said Frost & Sullivan Industry Analyst Kamalesh Mohanarangam. "Lectra’s equipment is fitted with more than 200 sensors that predict failure and immediately report issues to its call centres. This product feature and service has resulted in 98% uptime and very fast mean time to repair."

Although digital leather cutting solutions are an investment, leather cutters and Tier-1 suppliers have begun to recognize the value of these products. On average, Lectra’s solutions help customers achieve up to 7% savings on leather compared to manual die-press methods by minimizing human error and variability in the cutting room. A benchmark test of leather trim cutting for door panels demonstrated a 3.5% gain in material made possible by Versalis’ superior nesting capabilities compared to the customer’s yield using manual nesting with die press machines, representing potential savings of €9 million per year.
Versalis is the fruit of significant R&D investment for the company, which has always made re-investment of capital a priority. As part of a transformational plan, Lectra spent more than €50 million in investments between 2011 and 2015. With Lectra’s new strategy focusing on supporting their customers’ transition to Industry 4.0 standards, Lectra will increase the share of revenues dedicated to R&D to 10% for the period from 2017 to 2019, representing a rise of about 50% between 2016 and 2019.

Kreativität ist nicht alles. Von der innovativen Idee eines talentierten Designers bis zum eigenen erfolgreichen Label kann es ein langer, steiniger Weg sein. Dabei sind nicht nur stilprägende Designs, Hypes und It-Pieces entscheidend, sondern auch Finanzen, Strategie und Vertrieb. Gerade bei den letzten Punkten brauchen Entrepreneure oftmals Unterstützung.
Deshalb investiert die PREMIUM GROUP mit viel Engagement in die Erfolgsunternehmen von morgen. Bereits seit 2005 unterstützt die PREMIUM nachhaltig junge Talente. Aber auch bei der SEEK, BRIGHT und SHOW&ORDER AT KRAFTWERK BERLIN werden aufstrebende Brands gezeigt. Warum? Um den Marken die Möglichkeit zu geben, sich auf den internationalen Messeplattformen dem Handel zu präsentieren, um den Einkäufern die Vielfalt an inspirierenden Marken zu bieten und um den Jungunternehmern dem Austausch mit Branchen-Insidern zu ermöglichen.
Die Spanne der geförderten Kollektionen reicht von Womenswear, Menswear, Schuhen und Accessoires bis hin zu Activewear, Sustainability und Gadgets. Besonders im Bereich Activewear kommen vielversprechende Jungdesigner mit innovativen Ideen und neuartigen technischen Lösungen auf den Markt – wie etwa die Gymwear von Ina Kess, P.E Nation und Dresp sowie die Fahrradhelme von Closca.

The session will explore what the digital revolution means for business, and how innovations in manufacturing are the new reality that help create sustainable products that last and can be scaled to suit each actor through smart customization.
IMPRIMA S.p.a. is the global holding company dedicated to research, development and innovation in the textile printing and finishing arena. It is the first Fully Digital Industrial Platform, that today can offer a fully digitalized process in every step of its manufacture. Thanks to the acquisition of 100% of the German finishing and textile printing company KBC and 100% the Italian company GUARISCO by WISE SGR, Imprima is enriched by an international outlook that makes it extremely competitive in the market, which will be reinforced in the coming months with additional acquisitions in Italy and abroad, taking care to maintain best practices in terms of quality and service and the business identity of each company. In this way, Imprima represents a preferred partner for the fashion retailers.
IMPRIMA boasts a Total Water Management guarantee through its own chemical/physical process of water depuration technologies able to reduce the consumption of water up to 90%, avoiding effluents, by circulating it in a virtuous recycling process, for example now needing only 1 liter of water compared to traditionally 12 liters needed in the past.

Pilatus is displaying the PC-24 at the European Business Aviation Convention and Exhibition, taking place in Geneva on May 22-24. This highly versatile jet is able to take off and land on very short runways and unpaved strips due in part to the composite-intensive structure, which makes great use of Hexcel’s composite materials and adhesive.

Hexcel’s HexPly® 8552 woven prepreg in carbon and glass variants is used to manufacture a number of the aircraft components including the belly fairing, which is the largest composite structure on the aircraft. HexPly® 8552 is one of Hexcel’s most successful and widely used prepregs for aircraft programs including commercial aircraft and fighter jets. Hexcel’s Redux® 319 epoxy film adhesive is also used for bonding the composite structures. The PC-24 is in the final stages of its certification program following the first flight of the third and final test aircraft on March 6 2017. The aircraft is scheduled for certification and entry into service in the 4th quarter 2017. Pilatus has so far secured 84 orders for the PC-24, which equates to three years of production.

An exhibit at the recent Ambulatory Surgery Center Association (ASCA) annual meeting in Washington promoted the value of doing business with a Hygienically Clean Healthcare certified launderer. More than 120 attendees learned how the certification verifies laundries’ best management practices (BMPs) and quantifies laundered product cleanliness. The display marked the first such promotion of Hygienically Clean Healthcare to an outpatient medical market. Previous exhibits touted the certification to hospital audiences: the Association for the Healthcare Environment (AHE) and Association for Professionals in Infection Control and Epidemiology (APIC). Like members of those groups, most ASCA participants interviewed were industry customers, but represented a wider variety of professions, including M.D. owners and these job titles:

• Administrator • Business Manager
• CEO, President, CFO, COO
• Chief Medical Officer
• Clinical Coordinator, Director
• Nursing Director
• Regional Director, VP

Roughly 10 percent of the visitors to the Hygienically Clean exhibit on May 3-5 expressed concern about the product and service quality of their linen, uniform and facility services providers. Using a Hygienically Clean certified launderer addresses quality concerns, they were told, as inspectors focus on a facility’s quality assurance manual as the hub of control measures (BMPs) that minimize potential for error. In addition, unlike Healthcare Laundry Accreditation Council (HLAC) certification, Hygienically Clean microbial testing measures finished product quality, enforcing a total microbial content ceiling, including yeasts, molds and bacteria.

Lectra achieved record financial results in 2016: €260.2 million in revenues, rising 10%, and € 26.7 million in net income, an increase of 14%. The Group consolidated its positions in automotive, and fashion and apparel, as well as acquired strong positions in furniture. Lectra has entirely transformed itself and today benefits from its bolstered technological advance, the enhanced expertise of its teams, an extended global footprint, and a refurbished campus.

Looking ahead, Lectra is in a strong position to carry out its new strategy, carefully conceived to empower its customers to step into the Industry 4.0 era. In close collaboration with global customers, Lectra has identified four mega trends that will change the business: the Millennials generation, the digitalization of companies, the emergence of Industry 4.0, and profound changes in China’s economy. Their impact, set to intensify, represents considerable challenges. Lectra’s annual report analyses the implications of these mega trends, and outlines the company’s response.
Helping customers to tackle such challenges, Lectra is gearing up to commercialize Software as a Service (SaaS), leveraged by cloud technology. Its expert knowledge of business combined with ten years’ experience in the industrial Internet of Things and rising investments in R&D, means Lectra is in a formidable position to help its customers seize opportunities in the new industrial age.