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LNZ - Lenzing AG News Story

€41.2 -1.7  -3.9%

Last Trade - 2:58pm

Basic Materials
Mid Cap
Market Cap £1.03bn
Enterprise Value £1.81bn
Revenue £1.65bn
Position in Universe 348th / 1040

UPDATE 1-Lenzing lowers 2019 outlook due to weak market, low viscose prices

Wed 6th November, 2019 7:19am
(Adds outlook, details)
    Nov 6 (Reuters) - Austrian fibres producer Lenzing  LENV.VI 
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,
    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.
  ($1 = 0.9029 euros) 

 (Reporting by Zuzanna Szymanska in Gdansk; Editing by Tom Hogue
and Louise Heavens)
 ((zuzanna.szymanska@thomsonreuters.com; + 48 58 778 52 86;))
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