Lenzing says restructuring, currency effects and slow economy to impact earnings
Adjusting its earnings forecast for the year, the Lenzing Group said, it now expects EBITDA to be around 250 million euros.
The company added that restructuring expenses impacting the forecast, result from parts of the savings program that was initiated in the third quarter due to the deterioration in the market environment and the development of earnings. The goal of the program is to reduce the cost base by at least 70 million euros on an annualised basis.
Beyond this one-time effect, the company expects operating results in 2022 will be negatively impacted by the devaluation of the US dollar against the euro in the fourth quarter.
Also Lenzing was increasingly affected by the extreme developments on the global energy and raw material markets in 2022. In particular since the third quarter, the market environment has once again deteriorated significantly and the deteriorating consumer climate is placing an additional burden on the company’s business development.
The results of the Lenzing Group for the 2022 financial year will be published on March 9, 2023.