VIENNA, Aug 5 – Fibres producer Lenzing swung to a loss in the January-June period as low prices and weak demand hit its business.
The Austrian group booked a loss of 14.4 million euros ($17.0 million) in the first half of 2020 after reaching a profit of 76.8 million euros last year.
Net debt increased to 809.3 million euros by the end of June, up from 511.4 million at end-December, it said. Lenzing is facing a pricing decline in its core commodity, viscose, and crumbling demand in its main end-market textiles but is investing in new production capacities, which is increasing its debt levels.
It said late on Tuesday it expects its revenue and operating performance in the third and fourth quarters to exceed those it reported in the second quarter.
($1 = 0.8467 euros) (Reporting by Kirsti Knolle Editing by Michelle Martin)