Lenzing Reports Net Loss in First Half
Lenzing, the Austrian textile fiber producer, reports a net loss of EUR65.8 million in the first half of the year. Despite challenges faced, Lenzing remains optimistic about its recovery prospects.
By Andrea Figueras
Lenzing, the Austrian textile fiber producer, announced a net loss of EUR65.8 million ($72.3 million) in the first half of the year, compared to a net profit of EUR72.3 million in the same period last year. The company's revenue also decreased by 3.4% to EUR1.25 billion.
In the second quarter alone, Lenzing reported a net loss of approximately EUR800,000, a significant improvement compared to the loss of nearly EUR65 million in the first quarter.
Despite these challenges, Lenzing remains optimistic about its recovery prospects. The company acknowledges that the current market environment continues to impact consumer confidence and order levels across various industries. As a result, visibility on future earnings remains limited.
Lenzing also reported a loss before interest and taxes of EUR12 million for the first half of the year. In comparison, the company achieved a profit of EUR95.6 million during the same period last year.
Looking ahead, Lenzing anticipates full-year earnings before interest, taxes, depreciation, and amortization (EBITDA) to range between EUR320 million and EUR420 million. The company also expects growth in demand in the medium and long term.
To mitigate these challenges, Lenzing has initiated a cost-cutting program aimed at reducing working capital and strengthening cash flow. Additionally, the company has successfully completed a capital increase, raising gross proceeds of EUR400 million.