Lenzing Company News - Profit warning for 2019 on weak viscose, US impairment
Yesterday evening Lenzing issued a profit warning due to weak fundamentals for viscose prices, which hit an all-time-low in December 2019, when they averaged CNY 9,792/t, and the impairment of engineering works at the mothballed 90 kt lyocell plant construction project in the U.S. Management published preliminary, unaudited 2019 results of sales of EUR 2.11 bn, down 3% yoy, EBITDA of EUR 327 mn (-14% yoy) and net income before minorities of EUR 114 mn (down 23% yoy). These preliminary results are not only below guidance but undershoot our and consensus expectations by a wide margin.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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