SGL Carbon got off to a good start in fiscal year 2019. In the first quarter, sales revenue grew significantly by approximately 10 percent to reach 289 million euros. Group recurring EBIT grew to nearly 19 million euros, up approximately 2 million euros compared to the prior year period adjusted for a positive one-time effect of around 4 million euros. The company confirms its guidance for 2019 and continues to expect a mid single digit percentage sales increase and a Group recurring EBIT on the prior year level. As previously guided, a break even consolidated net result is expected. It should be noted in this context that the prior year benefited from a non-cash positive non-recurring item of about 28 million euros resulting from the full consolidation of SGL ACF. In addition, SGL Carbon plans increased expenses in the financial result mainly from the issue of the corporate bond in the amount of 250 million euros in April 2019. Together with the syndicated loan signed in January 2019 in the amount of 175 million euros, the refinancing measures are now completed. Thus, the company is financed until 2023 with respect to existing financial liabilities.Overall, we are satisfied with our start in fiscal year 2019, says Dr. J rgen K hler, CEO of SGL Carbon. We are convinced that we will again perform well this year despite the slowing economic growth across the globe because as the new SGL Carbon, with our focus on e-mobility, energy supply, and digitization, we are more diversified and customer-focused than ever before.
In the first quarter of 2019, sales revenue of SGL Carbon increased significantly by nearly 10 percent to 288.8 (previous year: 263.4) million euros. The increase is primarily attributable to higher deliveries by the business unit Graphite Materials & Systems (GMS). Recurring EBIT decreased by 9 percent to 18.7 (previous year: 20.5) million euros. Adjusted for an income of 3.9 million euros from a land sale in the prior year, recurring EBIT of SGL Carbon improved by 2.1 million euros. This is due to the fact that the decline in earnings in the business unit Composites - Fibers & Materials (CFM) was more than offset by the significant improvements in operating earnings in the business unit GMS and in Corporate. The return on capital employed (ROCE) based on recurring EBIT was 5.0 (previous year: 5.2) percent. In the first quarter of the prior year an adjustment to the fair value of the net assets of the previously proportionally consolidated joint operation with the BMW Group (SGL ACF) was required. This resulted in a positive impact on non-recurring earnings amounting to 28.4 million euros. As a result, EBIT after non-recurring items decreased to 16.3 (previous year: 47.2) million euros. Because of a positive foreign currency effect, net financing result improved from minus 7.0 to minus 6.2 million euros. Mainly due to the non-recurrence of the positive non-recurring item in the prior year, the result from continuing operations before income taxes decreased significantly from 40.2 million euros to 10.1 million euros in the reporting period. Consolidated net result of the period amounted to 8.9 million (previous year: 32.2) million euros.
Composites - Fibers & Materials (CFM): Stable sales revenues; earnings characterized by margin decrease in the Textile Fibers segmentSales revenues in the business unit CFM remained, as expected, on the prior year level of 115.0 million euros (currency adjusted: minus 2 percent). While the market segment Wind Energy recorded strong growth compared to the very weak prior year, the market segment Industrial Applications posted lower sales. Sales in the market segments Automotive, Aerospace and Textile Fibers remained approximately on the prior year level. As anticipated, recurring EBIT reflected the developments seen in the fourth quarter 2018 and reached a break even result at 0.4 (previous year: 9.3) million euros. Accordingly the EBIT margin in the business unit decreased to 0.3 (previous year: 8.1) percent. The main reason for this development was the significant price decrease in acrylonitrile, the raw material for the business in the market segment Textile Fibers. This led to a substantial reduction in the selling prices, while the inventory of raw materials was still valued at higher prices, leading to a temporary margin contraction, which slightly eased in March. The market segment Wind Energy also recorded declining earnings due to a temporary unfavorable product mix. In contrast, the earnings levels in the remaining market segments Automotive, Aerospace and Industrial Applications remained approximately on the prior year level. Return on capital employed (ROCE) based on recurring EBIT of the reporting unit CFM reached 1.8 (previous year: 5.0) percent.
Graphite Materials & Systems (GMS): Very strong increase in sales revenues, particulary in the Semiconductor, LED and Automotive businesses; earnings increased significantly more than proportionately to salesSales revenue in the reporting segment GMS in the first quarter 2019 increased by 17.2 percent (currency adjusted: 14 percent) to 164.2 (previous year: 140.1) million euros. The main drivers for this development were the market segments Semiconductor and LED, which increased their sales substantially more than 50 percent. The market segment Automotive & Transport also grew more than proportionately and increased its sales by more than 40 percent . Substantial growth was also recorded in the market segment Industrial Applications, while the market segment Chemicals posted slight growth. As expected, sales in the market segment Battery & other Energy remained on the prior year level while in the market segment Solar, sales were again limited to below the prior year level to prioritize sales to the Semiconductor and LED industries. In total, recurring EBIT increased substantiall
