(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
Most recent headlines
04/08/2024
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet, a leading technology and service provider for media-rich organizations, a...
30/04/2024
European telecom satellite company SES announced today that it is acquiring rival Intelsat for $3.1 billion. The deal, unanimously approved by both companies...
30/04/2024
Bob Bakish, chief executive of Paramount stepped down on Monday, effective immediately. Bakish, who was a staunch ally of Shari Redstone, controlling shareholde...
30/04/2024
Hotspring said the breakthrough had been achieved through the acceleration of machine learning technology
By Matthew Corrigan
Published: April 30, 2024
Ho...
30/04/2024
Speaking about the deal, Adel Al-Saleh, CEO of SES, said: it will bring value-added, efficient, and reliable offerings for both companies media customers
By Je...
30/04/2024
Paramount said the Office of the CEO is working with its board to develop a comp...
30/04/2024
LOUISVILLE, Ky. In another sign that broadcasters are finally using NextGen TV broadcasts to offer viewers new features instead of simply simulcasting existing ...
30/04/2024
OKLAHOMA CITY The Oklahoma Journalism Hall of Fame will induct Blaise Labbe, a group news director for Sinclair Broadcast Group, May 2 at the 54th Anniversary I...
30/04/2024
ATLANTA and ENGLEWOOD, Colo. Cox Media Group and Dish have ended a dispute over retransmission fees that lasted nearly a year and a half with a new multi-year ...
30/04/2024
Video transport solution provider LTN has announced that it is working with TelevisaUnivision to help the Spanish-language media giant migrate to IP-based video...
30/04/2024
ALAMEDA, Calif. Clear-Com has released details about how it played a pivotal role in the seamless coverage of the recent solar eclipse on April 8, 2024 by NBC K...
30/04/2024
CINCINNATI The E.W. Scripps Company is adding Seth Walters to its sales leadership team as head of CTV sales, effective April 29....
30/04/2024
The force was strong at the Durham Bulls Athletic Park on Saturday night, April 27, 2024, as the night netted the ballpark's first official sellout crowd of...
30/04/2024
Revry, a network celebrating queer culture. said its second annual NewFront presentation will be a cabaret-type spectacle showcasing the spirit of the LGBTQ+ co...
30/04/2024
Family Entertainment Television (FETV) said that the Western series The Life and Legend of Wyatt Earp will be joining the network's afternoon lineup startin...
30/04/2024
Bob Bakish, president and CEO of Paramount Global, will depart the company as Paramount explores a merger, according to numerous published reports. The reports ...
30/04/2024
Value accretive transaction underpinned by 2.4 billion (NPV) of readily executable synergies.
Creating a stronger multi-orbit operator with 60% of revenue in...
30/04/2024
Facebook
Twitter
LinkedIn
Order intake: 5.0 billion, up 47% ( 46% on an organic basis1 )
Sales: 4.4 billion, up 9.8% ( 7.9% on an organic basis)
All f...
29/04/2024
(L-R) Mark Gatiss and Polly Walker on set
Monday 29 April 2024 Further casting is now confirmed for Bookish (6x70), a brand-new drama created by Emmy Award-wi...
29/04/2024
A groundbreaking initiative offering training and mentoring to 30 women journali...
29/04/2024
Even though we've been doing this for over 40 years, a spark of excitement r...
29/04/2024
L3Harris is delivering manpack radios to U.S. Army CH-47 Chinooks as part of the Air-to-Ground Networking Radio program, providing seamless, resilient communica...
29/04/2024
He writes in Defense One: Despite the near-universal acknowledgement throughout the U.S. government and defense industrial base of the criticality of resilient ...
29/04/2024
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
29/04/2024
Codemill aims to revolutionize media workflow efficiency at this years NAB Show by introducing Just-In-Time (JIT) playback technology in Accurate.Video Validate...
29/04/2024
April 29, 2024
-- TF1 Chooses Broadpeak to Power Targeted Advertising for New...
29/04/2024
LOS ANGELES Allen Media Group (AMG) has partnered with LG Electronics to bring 223 Local Now FAST channels to LG's free streaming service, LG Channels, avai...
29/04/2024
OTTAWA Ross Video has announced the introduction of Raiden, a data-driven weather graphics software that combines data gathering, processing, and visualization ...
29/04/2024
Panalux, a leading rental provider of lighting and power solutions for the motion-picture industry and part of Panavision's end-to-end service offerings for...
29/04/2024
Cobalt Iron Inc., a leading provider of SaaS-based enterprise data protection, today announced that it has received a patent on its technology for dynamic autho...
29/04/2024
SDVI, the leading platform provider for cloud-native media supply chains, today announced that Rally Access Workstation, a fully managed solution for editing in...
29/04/2024
Premier Sports, a premium sports broadcaster, has selected QuickLink's Remote Commentary solution for introducing professional, high-quality remote commenta...
29/04/2024
Glookast has chosen Jigsaw24 Media as the only UK channel partner to represent their portfolio of ingest and workflow optimisation products. The agreement, sign...
29/04/2024
Clear-Com played a pivotal role in the seamless coverage of the recent solar eclipse on April 8, 2024. Leveraging its cutting-edge Eclipse HX Digital Matrix i...
29/04/2024
PlayBox Neo will promote its complete range of television channel management, graphic branding and playout solutions to EMEA region media content owners and bro...
29/04/2024
Lingo, RuPaul's word-twisting game show, returns for season two on CBS Friday, May 24. Two episodes air that night, and stream on Paramount Plus, too....
29/04/2024
ESPN and Amazon Prime Video are reportedly close to scoring television rights to the National Basketball Association, according to published reports....
29/04/2024
Judge Judy and Hot Bench, CBS Media Ventures' genre-leading court shows, have been renewed through the 2025-26 TV season in more than 95% of the country, Gr...
29/04/2024
Premier Sports, an Irish-based premium sports broadcaster, has selected QuickLink's Remote Commentary solution for introducing professional, high-quality re...
29/04/2024
The awards celebrate the craft of behind-the-scenes TV talent and the best programmes of 2023
By Matthew Corrigan
Published: April 29, 2024
The awards cel...
29/04/2024
The team at Milk had to create and deliver the VFX and environment work for the royal residences featured in the drama from scratch
By Jenny Priestley
Publis...
29/04/2024
CEO Bob Bakish is expected to leave the company as early as today, with a new leadership committee likely to run the company on an interim basis
By Jenny Pries...
29/04/2024
Albena Ivanova, director, media and entertainment and strategic products at CHAOS talks to TVBEurope about her route into the industry
By TVBEurope Staff
Pub...
29/04/2024
The acquisition gives Grand Technix the opportunity to expand its footprint in the audio visual and broadcast technology sectors
By Jenny Priestley
Published...
29/04/2024
29 04 2024 - Media release Screen Australia announces James J. Robinson's debut feature First Light
First Light
Principal Photography is underway on Firs...
29/04/2024
Capitol Broadcasting recently became the inaugural company honored with inductio...
29/04/2024
Tonight on House of Zwide: Zanele tells a surprised Zola that Faith fully suppor...
29/04/2024
Tonight on Scandal: A line is crossed and a mother starts to lose focusDon't miss Friday, 26 April's riveting episode of South African soapie Scandal! o...
(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.
