Lenzing 3Q 20 - Minor earnings beat, more upbeat management
Lenzing's 3Q 20 were again weighed down by lower fibre prices, but results came in slightly ahead of our and consensus estimates on the back of a higher share of specialty fibre sales and lower negative biological asset revaluations. Sales receded by 27% in the wake of a 24% viscose price decline that partially also weighed of viscose+ priced speciality fibres. Costs also dropped on all levels, with the company having achieved EUR 50 mn in savings (including short-term work, other temporary measures) in 1-3Q so far. The financial results remained in the red following the increase in net debt to EUR 823 mn from EUR 401 mn at the beginning of the year.Lenzing is engaged in supplying the global textile and nonwovens industries with man-made cellulose fibers and is a supplier in many business-to-business markets. The portfolio ranges from dissolving pulp, standard and specialty cellulose fibers to high-quality plastic polymer products and engineering services. Co.'s operations are divided into three segments: Fibers, which produces and markets man-made cellulose fibers for the textile and nonwovens industry; Plastics, which produces weaving, labelling films, laminates and woven fabrics; Engineering, which implement projects, supply plant and equipment and provide services arond the world.
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