Lenzing suspends 2022 guidance due to limited market visibility and high volatilityof energy and raw material market

September 19, 2022

  • Global market environment deteriorates significantly in current quarter: high inflation negatively impacts consumer climate
  • Strategic focus remains unchanged

The war in Ukraine, China’s zero-covid policy and the significant rise in inflation have had a significant impact on the global economy. The International Monetary Fund lowered its growth expectations for the current calendar year to 3.2 % in July. This drastically deteriorated market environment is also increasingly burdening the consumer climate as well as the sentiment in the industries relevant to Lenzing. 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, Lenzing also sees the achievement of its medium-term guidance for 2024 at risk.

“We are currently experiencing unprecedented distortions in the energy and raw material markets, which are burdening consumer climate and significantly limiting our visibility on short to medium-term business development. Lenzing can build on a solid and forward-looking strategy as well as high-quality and innovative products. The long-term growth prospects for our wood-based, biodegradable specialty fibres remain positive. We are a champion of sustainability and well on our way to transforming the global industry from a linear to a circular economy model. Lenzing is very well positioned, we will also overcome today’s economic turmoil”, says Stephan Sielaff, CEO of the Lenzing Group,

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 ambitious climate and sustainability goals, including the transformation to a circular economy model.

The Lenzing Group’s results for the first three quarters of the current financial year will be published on Thursday, November 03, 2022.

www.lenzing.com