Declining Sales and Earnings at Linz Textil
Linz Textil announced its first quarter results. The outlook is rather negative.
Sales of Linz Textil Group declined by 5.0% to € 42.3m to € 40.2m. Earnings before Taxes were down to € 1.7m (after € 3.5m in the first quarter of 2011). According to Linz Textil, the first quarter of 2012 cannot be fully compared with the reference period. Last year, an exceptionally strong rise in prices and a relatively low supply was observed.
Total assets declined slightly. Linz Textil´s equity quota rose to 78% after 76%. For 2012, Linz Textil expects not to reach the same results of 2011. In the second quarter the company anticipates a decline in demand. Moreover, margins are expected to decrease. As a result, Linz Textil forecasts declining earnings.
At the end of the first quarter 2012, Linz Textil employed 646 workers. One year ago, the staff number totaled 677.