Lenzing AG logo

LNZ - Lenzing AG News Story

€42.7 -0.6  -1.3%

Last Trade - 11:59am

Sector
Basic Materials
Size
Mid Cap
Market Cap £1.04bn
Enterprise Value £1.82bn
Revenue £1.65bn
Position in Universe 345th / 1031

UPDATE 1-Fibres maker Lenzing sees 59% profit fall, drops dividend

Wed 6th May, 2020 7:42am
(Adds CEO, detail)
    VIENNA, May 6 (Reuters) - Austrian fibres producer Lenzing
 LENV.VI  reported a 59% drop in first-quarter net profit on
Wednesday and dropped its dividend as the sector grapples with
oversupply.
    Net profit fell to 17.7 million euros ($19.2 million) on
revenue down 17% to 466.3 million euros for the three months to
March 31, it said.
    Prices for standard viscose fell to an all-time low due to
oversupply, said the company, which produces cellulose fibres
derived from sustainable wood and pulp.
    It also said it would withdraw its dividend proposal of one
euro per share due to the coronavirus crisis. 
    "The COVID-19 crisis has a severe impact on the entire
textile and apparel industry and has further increased the
pressure on prices and volumes," CEO Stefan Doboczky said.
    The company withdrew its 2020 outlook in March.
    Lenzing formed a joint venture to produce protective masks
for the European market in April with Austria's Palmers Textil
AG. 
    The JV, Hygiene Austria LP GmbH, has started to produce
so-called mouth-nose protective masks and surgical protective
masks and plans to produce more than 25 million masks per month,
Lenzing said.
    Construction of new plants in Brazil and Thailand is
progressing according to plan, it said.
    ($1 = 0.9230 euros)

 (Reporting by Kirsti Knolle; editing by Riham Alkousaa and
Jason Neely)
 ((kirsti.knolle@thomsonreuters.com; +43 1 2530 1650 13;))
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