Lenzing responds with savings program to earnings development
The Lenzing Group was increasingly affected by the extreme developments in global energy and raw material markets in the first three quarters of 2022, in line with the impact on the whole of manufacturing industry. The market environment deteriorated sharply, especially during the course of the third quarter, and the worsening consumer climate placed additional pressure on Lenzing’s business performance.
- Revenue in the first three quarters up 24 percent – significant deterioration in market environment impacts earnings performance
- 2022 earnings in the range of current market expectations
- Reorganization and cost reduction program of EUR 70 mn launched
- Supervisory Board appoints new Chief Financial Officer – Nico Reiner succeeds Thomas Obendrauf as of January 1, 2023 (see here)
The war in Ukraine, China’s zero-Covid policy and the sharp rise in inflation have had a significant impact on the global economy. In July, the International Monetary Fund downgraded its growth expectations for the current calendar year to 3.2 percent. This deterioration in the market environment is also increasingly affecting the consumer climate as well as sentiment in industries relevant for Lenzing. As a consequence, business prospects worsened significantly in the third quarter.
The Lenzing Interim Report 01-09/2022 is available on the company website.