Not least because of the drastic increase in energy and raw material prices, the result for the period fell to 74.9 million euros, Lenzing announced in the morning. Earnings before depreciation and amortization (EBITDA) fell by 11.6 percent to EUR 263 million compared to the same period of the previous year, earnings per share from EUR 3.77 in the first three quarters of 2021 to EUR 2.16 now.
Adjusted equity rose by 6.9 percent to EUR 2.26 million due to the development of operating earnings and positive currency effects. The adjusted equity ratio is 37.7 percent.
Lenzing has responded to the slump in profits with a savings program that is intended to reduce costs by EUR 70 million annually. “We are experiencing upheavals in the energy and raw materials markets, which are weighing on the consumer climate and significantly restricting our view of short- to medium-term business development,” says CEO Stephan Sielaff. That’s why a program has been started that will reduce costs in the short term and strengthen Lenzing in the long term.
Investments (CAPEX) fell by 15.7 percent to 532 million euros. Lenzing is currently investing more than 200 million euros in China and Indonesia to convert existing capacities for standard viscose into capacities for environmentally friendly special fibers. In Nanjing, Lenzing is working on converting a line for the production of modal fibers. The product portfolio of the Chinese location will consist entirely of special fibers by the end of 2022.
As reported, the company will have a new chief financial officer from January 1: Nico Reiner was appointed the new CFO by the supervisory board. In this position, he succeeds Thomas Obendrauf, who has not extended his contract. Until Nico Reiner joins, Sielaff will continue to perform the duties of CFO on an interim basis.
Source: Nachrichten
