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06.05.2020

Lenzing’s performance impacted by historically difficult market environment

  • Fiber prices and demand under pressure due to COVID-19 crisis
  • Measures to maintain operations and to protect employees, customers and suppliers implemented successfully
  • Hygiene competence center established to produce personal protective equipment in the fight against COVID-19 pandemic
  • Strategic investment projects in Brazil and Thailand progressing according to plan
  • Management Board proposes not to distribute a dividend for 2019 – AGM rescheduled for June 18, 2020

In a historically difficult market environment with increased pressure on prices and volumes resulting from the COVID-19 crisis, the Lenzing Group held its ground well in the first quarter of 2020. Thanks to a diversified business model and its global footprint on the one hand, and the disciplined implementation of the sCore TEN corporate strategy on the other, the effect on the revenue and earnings development was partially offset.

  • Fiber prices and demand under pressure due to COVID-19 crisis
  • Measures to maintain operations and to protect employees, customers and suppliers implemented successfully
  • Hygiene competence center established to produce personal protective equipment in the fight against COVID-19 pandemic
  • Strategic investment projects in Brazil and Thailand progressing according to plan
  • Management Board proposes not to distribute a dividend for 2019 – AGM rescheduled for June 18, 2020

In a historically difficult market environment with increased pressure on prices and volumes resulting from the COVID-19 crisis, the Lenzing Group held its ground well in the first quarter of 2020. Thanks to a diversified business model and its global footprint on the one hand, and the disciplined implementation of the sCore TEN corporate strategy on the other, the effect on the revenue and earnings development was partially offset.

In the first quarter of 2020, revenue declined by 16.7 percent in comparison with the prior-year quarter and amounted to EUR 466.3 mn. The main reason was the development of prices for standard viscose (due to significant overcapacity in the market) and other standard fibers. The impact of the COVID-19 crisis further increased pressure on prices and volumes. The prices for standard viscose dropped to a new all-time low of 9,150 RMB/ton by March 31 – up to 33 percent lower than in the prior-year quarter. The comparatively positive development of the specialty fiber business and slightly higher demand for fibers in the medical and hygiene segments partially offset the decline in revenue. The share of specialty fibers increased from 47.3 percent in the first quarter of the previous year to 60.9 percent. The earnings development reflects the decline in revenue: EBITDA (earnings before interest, tax, depreciation and amortization) decreased by 24.3 percent to EUR 69.6 mn. The EBITDA margin declined from 16.4 percent to 14.9 percent. Net profit for the period was down 58.6 percent to EUR 17.7 mn. Earnings per share amounted to EUR 0.84 compared with EUR 1.65 in the first quarter of the previous year.

More information:
Lenzing AG
Source:

Lenzing AG

(c) HeiQ
17.12.2019

HeiQ and Standard Fibers to announce next generation bio-based “starts cool, stays cool” fabric technology at Heimtextil

Swiss textile innovator HeiQ adds bio-based thermofunctional polymer products to their HeiQ Smart Temp family for a full range of intelligent thermoregulation triggered by body heat. The newly introduced products add dual-action cooling at contact to the already successful dynamic evaporative cooling technology.

Launched in 2011, HeiQ Smart Temp was a pioneer in intelligent thermoregulation technology for textiles. Continuous refinements of this product range have allowed HeiQ to be the go-to solution provider as its technologies offer not only industry-leading dynamic evaporative cooling performance, but also ease of application and a friendly price point for brand partners. The latest breakthrough with cool touch technology allows consumers to touch, feel and understand the technology at point-of-sale, and ensures thermal comfort at all times by providing the benefits of cool at contact and continuous evaporative cooling. It is currently optimized for use on home textile products such as mattress ticking and bed linens. All HeiQ Smart Temp products are Oeko-Tex® Class 1-4 conform, bluesign® and USDA BioPreferred pending.

Swiss textile innovator HeiQ adds bio-based thermofunctional polymer products to their HeiQ Smart Temp family for a full range of intelligent thermoregulation triggered by body heat. The newly introduced products add dual-action cooling at contact to the already successful dynamic evaporative cooling technology.

Launched in 2011, HeiQ Smart Temp was a pioneer in intelligent thermoregulation technology for textiles. Continuous refinements of this product range have allowed HeiQ to be the go-to solution provider as its technologies offer not only industry-leading dynamic evaporative cooling performance, but also ease of application and a friendly price point for brand partners. The latest breakthrough with cool touch technology allows consumers to touch, feel and understand the technology at point-of-sale, and ensures thermal comfort at all times by providing the benefits of cool at contact and continuous evaporative cooling. It is currently optimized for use on home textile products such as mattress ticking and bed linens. All HeiQ Smart Temp products are Oeko-Tex® Class 1-4 conform, bluesign® and USDA BioPreferred pending.

As the demand for thermo-functional polymer applications continues to grow, HeiQ created HeiQ Iberia to focus on this product development. There are three new products (two more in the pipeline) in the range that all provide instant cooling from a bio-based thermo-functional polymer, and each product is optimized to perform on specific items such as mattress ticking or bedding accessories. By adding a new category of products to the range, HeiQ now has a broad range of intelligent thermoregulation solutions for home textile market. HeiQ is launching these products for home textiles with their partner Standard Fiber at Heimtextil Frankfurt (7-10 January 2020).

“We have more and more business developing around temperature-regulating technologies”, says Sandy Gray, CEO at Standard Fiber LLC. “To support our mission of continuously introducing new technologies and innovations to our customers, we are excited to work with HeiQ and present HeiQ Cool Touch technologies to our customers to elevate and differentiate their products in the market”.

More information:
HeiQ Standard fibers
Source:

HeiQ