•  Lenzing expects EBITDA of approximately EUR 250 mn for the 2022 financial year
  •  Savings program accelerated; restructuring expenses included in 2022 result 
  •  Social plan for the Lenzing site already negotiated and resolved 

Lenzing – The Lenzing Group, the world’s leading supplier of specialty fibers for the textile and nonwovens  industries, is adjusting its earnings forecast for the 2022 financial year due to one-off effects related to the  accelerated savings program as well as currency effects and a further deterioration of the market environment.  Lenzing expects its earnings before interest, tax, depreciation and amortization (EBITDA) to be around  EUR 250 mn. 

The restructuring expenses result from parts of the savings program that was initiated in the third quarter due to  the deterioration in the market environment and the development of earnings. The goal of the program is to  reduce the cost base by at least EUR 70 mn on an annualized basis. Due to the accelerated progress, the  restructuring expenses will already be included in the 2022 results. 

As part of this cost reduction program, a social plan for the Lenzing site has been negotiated and resolved  together with the works council. Implementation of the social plan will begin in the first quarter of 2023. 

Beyond this one-time effect, the operating result in 2022 will be negatively impacted by the devaluation of the  US dollar against the euro in the fourth quarter.  

Lenzing, like the entire manufacturing industry, was increasingly affected by the extreme developments on the  global energy and raw material markets in 2022. In particular since the third quarter, the market environment has  once again deteriorated significantly and the deteriorating consumer climate is placing an additional burden on  Lenzing’s business development. 

Strategy remains unchanged 

The long-term trend towards sustainable products remains unaffected by short-term economic distortions.  Therefore, Lenzing sees itself confirmed in its long-term corporate strategy and will continue to drive growth with  sustainably produced fibers and the implementation of its ambitious climate and sustainability goals, including  the transformation to a circular economy model. 

The results of the Lenzing Group for the 2022 financial year will be published on March 09, 2023.