Austria’s Lenzing stock tanks as 2022 earnings expected to fall 31%

MADRID (ICIS)–Shares in Lenzing were down 6.5% in European afternoon trading after the Austrian chemicals producer said it expects 2022 earnings to fall 31% compared with 2021, due to a “further deterioration” in market conditions.

Lenzing said it is expects earnings before interest, taxes, depreciation and amortisation (EBITDA) at around €250m in 2022.

In 2021, its EBITDA was €362.9bn on sales of €2.19bn.

Lenzing said it had been affected by “extreme developments” in energy and raw materials prices in the second half of this year.

“Since the third quarter, the market environment has once again deteriorated significantly, and the deteriorating consumer climate is placing an additional burden on Lenzing’s business development,” the company said.

“The operating result in 2022 will be negatively impacted by the devaluation of the US dollar against the euro in the fourth quarter.”

Lenzing issued the profit warning on Monday after the market close, when it ended the day at €60/share.

By 13:35 CET on Tuesday, its stock had fallen to €55.80/share.

The company added that one-off expenses related to a saving programme it started in Q3 will also have a negative impact on EBITDA.

It expects to save €70m annually, it said.

In September, Lenzing had already abandoned its full-year guidance following market volatility.

Among other chemicals, Lenzing is a large producer of fibres. The company is due to release its full-year results for 2022 on 9 March.

Front page picture: Lenzing’s production facilities in Alabama, US
Source: Lenzing