November 7, 2018 / 7:15 AM / 9 days ago

Austria's Lenzing posts 27 pct drop in 9-month core profit on price pressure

VIENNA, Nov 7 (Reuters) - Austrian fibres producer Lenzing AG posted a 27 percent fall in nine-month core profit on Wednesday due to higher input costs and lower prices for some of its textiles.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at 290.6 million euros ($332.56 million) on revenue of 1.64 billion euros.

“The Lenzing group is currently operating in a challenging environment. Against this background, we are satisfied with the solid business development,” Chief Executive Stefan Doboczky said in a statement.

The acquisition of the remaining 30 percent of Chinese subsidiary Lenzing (Nanjing) Fibers Co (LNF) will weigh on its full-year net profit with a 21 million euro hit, according to Lenzing.

The group said it expected full-year results to be lower than in the last two years.

For 2019, the company forecast the standard viscose market to remain under pressure because of oversupply and high raw material prices. The specialty fibre business is expected to continue its good run, it said. ($1 = 0.8738 euros) (Reporting by Kirsti Knolle; Editing by Subhranshu Sahu)

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