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LNZ - Lenzing AG News Story

€45.3 0.3  0.7%

Last Trade - 4:35pm

Basic Materials
Mid Cap
Market Cap £1.10bn
Enterprise Value £1.89bn
Revenue £1.68bn
Position in Universe 341st / 1041

UPDATE 1-Lenzing sees no big fibre price recovery in 2015

Tue 24th March, 2015 10:42am
* Confirms 14 mln eur 2014 loss 
    * Cuts 2014 dividend to 1.00 eur/shr 
    * Pushes ahead with cost cuts 
    * CFO says aims at 2015 profit, hard to predict 
 (Adds details, share price, background) 
    VIENNA, March 24 (Reuters) - Austrian fibre maker Lenzing 
 LENV.VI  expects no far-reaching price recovery in the mid 
term, it said on Tuesday, after a market swamped by cheap 
Chinese and Indian viscose pushed it to a 2014 net loss of 14 
million euros ($15.3 million). 
    Lenzing proposed a 1 euro per share dividend, down from 1.75 
euros for 2013. Chief Financial Officer Thomas Riegler said 
Lenzing aimed to make a profit this year, adding it was 
difficult to make any predictions with China restricting 
imports, stocks high and viscose prices stable, but low. 
     Lenzing said it was set to cut costs next year by 160 
million euros compared with 2013, when it started a savings plan 
which includes jobs cuts, better supply contracts and an even 
stronger focus on specialised fibres such as Tencel and Modal. 
    Such products - often mixed with cotton - are used in bed 
linen for clients like furniture giant Ikea, clothes for 
international fashion brands like Zara and in face wipes sold 
across Asia. 
   Lenzing aims to cut costs by 130 million euros this year 
compared with 2013. "If you have to save, it's only right to 
really go for it," said outgoing Chief Executive Peter 
Untersperger, who will be replaced in June.  ID:nL6N0WM3CS  
    Lenzing reiterated its preliminary results.  ID:nL5N0W44WP  
Its stock fell around 3.5 percent to 62.72 euros at 1029 GMT. 
    ($1 = 0.9124 euros) 
 (Reporting by Shadia Nasralla and Angelika Gruber; editing by 
Jason Neely and Michael Shields) 
 ((Shadia.Nasralla@thomsonreuters.com; +43 153 11 2256; +43 664 
390 6505;)) 
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