The supplier of wood-based specialty fibers for the textile and nonwovens industries, Lenzing Group, has suspended its guidance for the development of earnings in the 2022 financial year in view of the drastic deterioration of the market environment in the current quarter (Q3/2022). The further course of the 2022 financial year can only be estimated to a limited extent due to the extremely low visibility on the demand side and the high volatility of energy and raw material costs.
The war in Ukraine, China’s zero-covid policy and the substantial rise in inflation have had a significant impact on the global economy. The International Monetary Fund (IMF), Washington, DC/USA, lowered its growth expectations for the current calendar year to 3.2% in July 2022. This drastically deteriorated market environment is also increasingly burdening the consumer climate as well as the sentiment in the industries relevant to Lenzing AG, Lenzing/Austria. As a result, the expectations regarding the business outlook declined significantly once again according to current surveys.
Based on current assumptions for energy and raw material costs, the company also sees the achievement of its medium-term guidance for 2024 at risk. In light of the current distortions in the energy and raw material markets and their impact on consumer climate, Lenzing sees itself confirmed in its long-term corporate strategy and will continue to drive specialty fiber growth and the implementation of its climate and sustainability goals, including the transformation to a circular economy model.