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Perceptible weakening in Lenzing Fibers
25 Aug '08
4 min read
According to expectations, business development was positive even if there were first signs of impact from the weakening European economy. The first half of the segment Engineering's business year was characterized by strong order bookings from the fiber industry due to continued investment activity.
Outlook:
The unfavorable economic development that started in the USA clouds expectations for the global economy. The current business year will see the start-up of more production capacity for cellulose fibers in Asia. The global undersupply of the past two years will therefore give way to a phase of overcapacity. The weak dollar and turbulent raw material and energy markets will add further pressure.
The Lenzing Group will counter the increasingly difficult market situation in its core business fibers with a high-quality product portfolio with less susceptibility to cyclical volatility and further orientation towards specialty products. The company will thereby maintain its global market leadership. However, margins in the fiber business will inevitably decline in the further course of the business year.
Segments Plastics will have to face challenges in the second half of the business year. Segment Engineering is expected to have a good and stable business development. Results for business year 2008 are expected to be on par with the very good results of the past years. It is, however, rather likely that the record result of 2007 will not be reached.
Outlook:
The unfavorable economic development that started in the USA clouds expectations for the global economy. The current business year will see the start-up of more production capacity for cellulose fibers in Asia. The global undersupply of the past two years will therefore give way to a phase of overcapacity. The weak dollar and turbulent raw material and energy markets will add further pressure.
The Lenzing Group will counter the increasingly difficult market situation in its core business fibers with a high-quality product portfolio with less susceptibility to cyclical volatility and further orientation towards specialty products. The company will thereby maintain its global market leadership. However, margins in the fiber business will inevitably decline in the further course of the business year.
Segments Plastics will have to face challenges in the second half of the business year. Segment Engineering is expected to have a good and stable business development. Results for business year 2008 are expected to be on par with the very good results of the past years. It is, however, rather likely that the record result of 2007 will not be reached.
Lenzing Aktiengesellschaft
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