The Austrian fiber manufacturer Lenzing AG will have to take write-downs in the three-digit million range in the 2023 financial year.
On Tuesday evening, the company announced that the “annual evaluation of the valuation of assets” had revealed a need for impairment, which would require special write-downs of up to 480 million euros. The reasons for this are “on the one hand, ongoing uncertainties in the economic environment” and “on the other hand, continued increased raw material and energy costs as well as increased discount rates due to the changed interest rate environment,” explained the group.
The non-cash special depreciation would impact earnings before interest and taxes (EBIT) in the current financial year, but not earnings before interest, taxes, depreciation and amortization (EBITDA), the fiber producer emphasized.
The company therefore continues to expect EBITDA for 2023 to be within the previous forecast range of 270 to 330 million euros. Specifically, a result in the region of around 300 million euros is now expected. The group plans to present its complete business figures for the past year on March 15th.