The Lenzing Group has suspended its earnings guidance for the 2022 financial year due to drastic deterioration of the market environment in the current quarter.
The company said in a release that further course of the 2022 financial year can only be estimated to a limited extent due to extremely low visibility on the demand side and high volatility of energy and raw material costs.
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 is very well positioned, we will also overcome today’s economic turmoil,” said Stephan Sielaff, CEO of the Lenzing Group.
The company added that war in Ukraine, China’s zero-covid policy and the significant rise in inflation have had a significant impact on the global economy.
The company further said that the International Monetary Fund lowered its growth expectations for the current calendar year to 3.2 percent 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,” Lenzing said.
The Lenzing Group’s results for the first three quarters of the current financial year will be published on November 03, 2022.