The share price of the fiber manufacturer Lenzing fell significantly on Friday – by 7.4 percent to 38.80 euros. The reason is that the company revised its earnings forecast for the 2023 financial year downwards on Thursday evening.
Lenzing AG is now assuming earnings before interest, taxes, depreciation and amortization (Ebitda) of between 270 and 330 million euros. So far the target was in the range of 320 to 420 million euros.
Lenzing justified the change with the difficult situation in the relevant markets: “The recovery expected in the second half of the year in the markets relevant to us has not yet occurred. This makes the early measures we have taken all the more correct. We have already… “We launched an ambitious cost reduction program in November 2022, which delivered the expected results earlier than planned,” said CEO Stephan Sielaff.
In the announcement, Sielaff also spoke of “measures to strengthen profitability and cash flow generation and to exploit growth potential”, which they want to go into in more detail when the results for the third quarter are published on November 3rd. No details were available on Friday: the company could not be reached for comment.
In August, Lenzing presented a deep red half-year result: the bottom line was a loss of 65.8 million euros. In the same period last year, a profit of 72.3 million euros was achieved. Sales fell from 1.29 to 1.25 billion euros. The main problem is the lack of demand for fiber. These are used less in the textile industry because customers buy less clothing.
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