The Austrian fiber producer Lenzing AG drew conclusions from the current adverse conditions on Monday evening. “In view of the drastically deteriorated development of the market environment in the current quarter, the Lenzing Group is suspending its forecast for earnings development in the 2022 financial year,” the company said in an ad hoc announcement. The development in the coming months can only be estimated to a limited extent “due to the extremely low visibility on the demand side and the high volatility of energy and raw material costs”. In view of the numerous uncertainties, “the achievement of the medium-term forecast for 2024 is also at risk”.
CEO Stephan Sielaff justified the decision: “We are currently experiencing unprecedented distortions in the energy and commodity markets, which are weighing on consumer confidence and severely limiting our view of short- to medium-term business development,” he said in a statement. However, the group can “build on a solid and future-oriented strategy as well as high-quality and innovative products”, emphasized Sielaff and was correspondingly confident for the future: “The long-term growth prospects for our wood-based, biodegradable special fibers are still positive”.
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