Lenzing challenged

Fiber giant remains in the red

Lenzing AG continues to struggle with a challenging market environment.(Bild: Pressefoto Scharinger/Daniel Scharinger)

At minus 593 million euros, Lenzing AG posted a high loss in the last financial year - now things are slowly looking up again. The fiber giant was able to increase sales in the first quarter of 2024, but earnings after taxes remained in the red.

"Business development is heading in the right direction. However, we cannot speak of a sustainable recovery in the markets," says Lenzing CEO Stephan Sielaff, who reports continued "high price pressure in the fiber business".

A fire at the Lenzing site had caused a lot of excitement in recent weeks and also slightly disrupted operations, but the start to the new financial year was nevertheless encouraging for the fiber giant. This is because demand for the globally active group's specialty fibers is good. Environmentally friendly fibers are not only increasingly in demand in the textile and clothing industry, but also in the hygiene and medical sectors.

Sales of Lenzing AG rose to EUR 658.4 million in the first quarter, while earnings after tax remained in negative territory - at minus EUR 26.9 million. Nevertheless, this already represents an increase: after the first quarter of 2023, earnings after tax were still reported at minus EUR 64.9 million.