Lenzing satisfied despite drop in revenue and earnings
10/05/2018
The company has reported revenue of €550.3 million for the first three months of the year, a 6.1% drop year on year. “This drop is mainly attributable to less favourable currency exchange rates,” it said.
Its earning during the period fell 24.8% to €101.6 million, which Lenzing said was mainly due to softening prices for commodity viscose and increasing costs for key raw materials.
Stefan Doboczky, chief executive of Lenzing, said: “Following the record year of 2017, Lenzing began the expected challenging 2018 financial year with a decline in revenue and earnings. Market headwinds were clearly noticeable in the first quarter but still we are pleased with the solid results given the more demanding market environment.”
Another factor that contributed to Lenzing’s drop in earnings was the more than doubling of its capital expenditures. This was due to investments made to expand its production capacities for specialty fibres in Heiligenkreuz and Burgenland, both in Austria, and in Mobile, Alabama, in the US. The group is also expanding and modernising its dissolving pulp plants in Lenzing, Austria and Paskov, Czech Republic.
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