(3:20 pm) In light of the uncertainties surrounding the further development, the duration as well as the impacts of the Covid-19 pandemic, on April 1, 2020, the Board of Management of SGL Carbon SE decided to suspend the guidance for the fiscal year 2020 as published in the Annual Report 2019. Based on preliminary Group results for the second quarter 2020 the Board of Management has today assessed the outlook for the second half of the year.
At the beginning of the second quarter 2020, business development particularly in the business unit Composites - Fibers & Materials (CFM) was still dominated by the pandemic protection measures in place in Europe and North America as well as a sharp initial decline in volumes. In the further course of the second quarter, own measures to adapt to the effects of the pandemic were accompanied by a beginning volume recovery. As a consequence, the preliminary results for the second quarter 2020 do not look as weak as anticipated at the presentation of the quarterly statement as of March 31, 2020 (Group sales to decline substantially double-digit compared to the prior year level, negative recurring EBIT1). In fact, while Group sales has likely declined by approx. 25% compared to the prior year level of approx. 273 million, recurring EBIT is likely to have remained at break-even level in the second quarter 2020. The liquidity position at approx. 150 million at the end of the second quarter 2020 has remained stable compared to the end of the prior quarter and thus continues to be above the level at year-end 2019 (approx. 137 million).
While the global economic backdrop continues to remain fragile and dominated by Covid-19, the outlook for the second half of the year is becoming more and more consistent. Therefore under specific assumptions, which remain tentative, an outlook can once again be presented for the fiscal year 2020. In particular, a second pandemic wave and an associated further decline in demand due to a recession is not taken into account in the current forecast for the full year.
Accordingly, SGL Carbon expects Group sales to decline year-over-year by 15% to 20% (Group sales 2019: 1,087 million) and a slightly positive operating recurring EBIT for the full year 2020.
As already communicated since the beginning of this year, SGL Carbon has been working on various additional funding options independent from the capital markets. Some of these measures have been successfully completed or substantially advanced in the past weeks. These will increase Group recurring EBIT in a low double-digit million amount in the form of one-time effects, presumably mainly in the third quarter.
Consequently, Group net result from continuing operations for fiscal year 2020 is expected in a similar magnitude as before the Covid-19 pandemic outbreak (negative low double-digit million amount) despite a lower operating Group recurring EBIT.
To take into account the reduced operating earnings expectations and in the context of a conservative free cash flow management, capital expenditures will be further reduced in the current year to approx. 60 million (Guidance in March 2020: 70-80 million) and thus below the level of depreciation.
Thanks to the successful execution of additional non-capital market related funding options mentioned above, the March 2020 guidance of a mid double-digit million increase in net debt at year-end 2020 compared to year-end 2019 can be more or less confirmed despite substantially lower operating earnings expectations. The increase in net debt can largely be attributed to the payment of the purchase price for SGL Composites USA (the carbon fiber plant of our former joint venture with BMW in Moses Lake, Washington, U.S.), in the amount of 62 million U.S. Dollar, which is due at the end of this year.
Accordingly, a comfortable liquidity position is expected at year-end 2020 despite the purchase price payment due in the fourth quarter 2020. In addition, the syndicated loan in the amount of 175 million continued to remain available and undrawn.
The detailed interim report on the first half year 2020 will be published on August 13, as planned.
1The use of KPIs in this notification is aligned to the annual report 2019. There were no changes to the scope of consolidation or to valuation methods compared to the previous guidance.
About SGL CarbonSGL Carbon is a technology-based company and world leader in the development and production of carbon-based solutions. Its high-quality materials and products made from specialty graphite and composites are used in industrial sectors that determine the future: automotive, aerospace, solar and wind energy, semiconductor and LEDs as well as in the production of lithium-ion batteries and other energy storage systems. In addition, SGL Carbon develops solutions for chemical and industrial applications.
In 2019, SGL Carbon SE generated sales of around 1.1 billion euros. The company has approx. 5,100 employees at 31 locations in Europe, North America, and Asia.
Materials, products and solutions from SGL Carbon are embedded in the major topics of the future: sustainable mobility, new energies and cross-industry digitization. Further developments in these areas demand more intelligent, more efficient, networked and sustainable solutions. This is where the entrepreneurial vision of SGL Carbon evolves around: contributing to a smarter world.
Further information on SGL Carbon can be found at www.sglcarbon.com/press.
Additional Information:ISIN: DE0007235301 / DE000A2G8VX7
Listing: Amtlicher Markt / Prime Standard / Frankfurter Wertpapierb rse
(Official Market / Prime Standard / Frankfurt Stock Exchange)
OTC in Germany: Berlin, D sseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
Companys seat: Wiesbaden
Important note:To the extent that our press release contains forward-loo
More from SGL
03/09/2026
With the start of the new apprenticeship year, young talent has once again begun their professional careers at SGL Carbon's sites in Germany. Recently, the ...
26/08/2026
Discussions at the Meitingen site on competitiveness, energy supply, and fuel cell technology
Bertram Brossardt, CEO of the Bavarian metal and electrical emplo...
06/08/2026
SGL Carbon's consolidated sales in the first half of 2026 totaled 394.2 million, down 13.0% from the prior year (H1 2025: 453.2 million). On the one hand,...
03/08/2026
SGL Carbon and X-energy today announced a binding agreement to double SGL's production capacity for medium-grain isotropic graphite ( NBG-18 ), a specialize...
30/07/2026
As part of its traditional graduation ceremony, SGL Carbon honored the achievements of a total of twelve young professionals who successfully completed their ap...
23/07/2026
SGL Carbon has further expanded its photovoltaic capacity at its Ort im Innkreis site in Austria. With the commissioning of new PV carports, the sites solar sys...
22/05/2026
At its Meitingen site, SGL Carbon has implemented two key projects to further de...
20/05/2026
At the Annual General Meeting held on May 20, 2026, the shareholders of SGL Carb...
07/05/2026
In the first quarter 2026, SGL Carbon generated consolidated sales of 184.5 million, which was 49.8 million, or 21.3%, lower than in the prior year (Q1 2025: ...
13/04/2026
The Girls' Research Camp is part of the Technology - Future in Bavaria edu...
19/03/2026
The discontinuation of loss-making business activities as part of the restructur...
17/03/2026
Last Friday, the first Plant Fire Department Training Week in Bavaria successf...
15/01/2026
The SGL Carbon site in Bonn has a long tradition of training. For many years, young talent has been successfully trained here, regularly achieving excellent exa...
15/01/2026
The JEC Composites Innovation Awards annually honor the most innovative and ambi...
15/01/2026
X-energy Reactor Company, LLC ( X-energy ) and SGL Carbon LLC ( SGL ) have signed a 10-year framework agreement to provide graphite for the deployment of X-ener...
21/11/2025
Wiesbaden, November 21, 2025. The SGL Carbon site in Meitingen has reason to celebrate as one of its trainees received a special award. Elias Stemmer was honore...
18/11/2025
SGL Carbon and the renowned Link ping University inaugurated an advanced coating...
11/11/2025
This year, SGL Carbons Willich site is celebrating a special anniversary. For 30...
06/11/2025
After nine months of fiscal year 2025, SGL Carbon generated sales of 652.9 million, down 16.5% on the previous year (9M 2024: 781.9 million). This is attribut...
30/10/2025
The SGL Carbon site in Bonn has a long tradition of training. For many years, young talent has been successfully trained here, regularly achieving excellent exa...
22/10/2025
Over the past few months, a photovoltaic system has been installed on a three-he...
14/10/2025
Last week, the 4th global Safety Day took place at all SGL Carbon sites.
This years Safety Day focused on hazardous substances. Various information events, wor...
08/10/2025
Great success for the SGL Carbon site in Willich: one of the companys trainees has been honored by the Chamber of Industry and Commerce (IHK) for the Middle Low...
15/09/2025
After months of intensive planning and implementation, Brembo SGL Carbon Ceramic...
08/09/2025
The company continues to focus on its own training programs. Recently, 20 new ap...
11/08/2025
A total of six young trainees successfully completed their vocational training a...
07/08/2025
Increasing uncertainty about the future development of global trade, tariff incr...
05/08/2025
In early July, Tras Ltd., a Japan-based company, unveiled the new natural fiber body for the Toyota Hilux, which will compete in the Asia Cross Country Rally in...
01/08/2025
How does a customer request become a finished product? Around 120 school student...
23/07/2025
Two visits, one common goal: integration and exchange. The youth representatives...
24/06/2025
SGL Carbon is expanding its product portfolio with a new battery felt for redox flow batteries. The innovative electrode material, marketed under the name SIGRA...
21/05/2025
At todays Annual General Meeting, the shareholders of SGL Carbon SE discharged the Board of Management and Supervisory Board for the 2024 fiscal year and approv...
13/05/2025
On Wednesday, May 7, 2025, a representative of the Ford Motor Company visited the SGL Carbon site in Ort im Innkreis, Austria, to present the prestigious Q1 Awa...
08/05/2025
As expected, continued weak demand from key sales markets and declining economic...
05/05/2025
As part of the restructuring of its loss-making Carbon Fibers business unit, SGL Carbon has decided to close its production site in Lavradio (Portugal). Lavradi...
29/04/2025
Participants in the 2025 Research Camp at SGL Carbon and the Technische Hochschu...
25/03/2025
In the period from mid-January to mid-February, five young professionals success...
20/03/2025
Increasingly weaker demand from key sales markets over the course of 2024 is slo...
24/02/2025
Ten school students from Meitingen secondary school had the opportunity to gain ...
21/02/2025
On February 19, 2025, Julia Herting, the Site Manager of SGL Carbon in Bonn, signed a declaration of intent, marking an important step in contributing to climat...
18/02/2025
(05:02 PM) Wiesbaden, February 18, 2025. The Board of Management of SGL Carbon S...
18/02/2025
The Board of Management of SGL Carbon SE today decided, with the approval of the...
04/02/2025
As a technology-based company and one of the worlds leading companies in the development and production of carbon-based solutions, SGL Carbon opts for innovativ...
30/01/2025
The supply capability of SGL Carbon, a leading international supplier of carbon-...
13/12/2024
SGL CARBON SE
Wiesbaden
- ISIN DE00723501 -
Disclosure of material transactio...
19/11/2024
(11:18 AM) Wiesbaden, November 19, 2024. The Supervisory Board of SGL Carbon SE decided in its meeting today to appoint Andreas Klein as Chief Executive Officer...
19/11/2024
The Supervisory Board of SGL Carbon SE decided in its meeting today to appoint A...
07/11/2024
Weak demand in some of our customer markets is increasingly hindering SGL Carbons sales growth. After nine months in 2024, SGL Carbon generated sales of 781.9 ...
(3:20 pm) In light of the uncertainties surrounding the further development, the duration as well as the impacts of the Covid-19 pandemic, on April 1, 2020, the Board of Management of SGL Carbon SE decided to suspend the guidance for the fiscal year 2020 as published in the Annual Report 2019. Based on preliminary Group results for the second quarter 2020 the Board of Management has today assessed the outlook for the second half of the year.
