September 27, 2018 / 1:31 PM / 3 months ago

INTERVIEW-Lenzing sticks to earnings guidance after of U.S. expansion halt

VIENNA, Sept 27 (Reuters) - Austria’s Lenzing expects its 2018 earnings to not be negatively affected by its decision to halt a major expansion project in the United States and also does not expect substantial impairments, its Chief Executive said on Thursday.

The cellulose fibres producer decided to stop the construction of a $322 million plant in Mobile, Alabama for the time being. It said the step was necessary due to a surge in construction costs and likely rising tariffs in the wake of the trade tensions between the U.S. and China.

“We now have neither a profit warning for 2018, neither a change in our earnings, nor do we face a write-off,” Chief Executive Stefan Doboczky told Reuters.

$1 = 0.8560 euros Editing by Thomas Seythal

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