Austrian fibres producer Lenzing lowered its 2019 targets as it reported a slight third-quarter miss due to a challenging market environment with historically low viscose prices.
Lenzing said it now expects its 2019 results to be slightly below the previous year, having previously said earnings would be similar to those of 2018.
The group’s revenue dropped to 529.4 million euros ($586.3 million), while its earnings before interest and taxes (EBIT) came in at 47.9 million euros. Analysts had expected the metrics to come in at 534.9 million euros and 51.3 million euros, respectively.
The very challenging and volatile market environment in general, paired with trade disputes between the major economic blocks and a high level of uncertainty in the textile value chain, significantly impacts Lenzing’s earnings visibility, the company said.
Global fibre demand has weakened in the third quarter as trade conflicts have caused uncertainty throughout the textile value chain, Lenzing said.
Capacity expansions for standard viscose, coupled with the sluggish demand, caused prices to reach a new historic low in the third quarter, Lenzing added.
In specialty fibres, however, the company said it expects a comparatively positive development.
(Source: REUTERS)
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