Sony Pixel Power calrec Sony

Initiated transformation shows effect in sales and earnings 2021 - SGL Carbon tops sales billion again


Rising demand in almost all market segments led to a 9.5% increase in Group sales to 1,007.0 million in fiscal 2021 compared to the previous year (2020: 919.4 million). Almost all business units contributed to the pleasing sales performance. At 50.9%, EBITDApre improved disproportionately to Group sales and amounted to 140.0 million in fiscal 2021 (2020: 92.8 million). Increased sales and the associated higher capacity utilization contributed to the improvement in earnings, together with the cost savings achieved as a result of the transformation initiated at the end of 2020.

We have delivered. The 2021 sales and earnings figures support our forecast, which we raised in mid-2021. Looking back, we have significantly exceeded the financial targets set at the beginning of 2021 and have already realized in 2021 part of the increase in sales and profitability originally expected in 2022. The figures show that we have more than fulfilled our announcements and initiated a comprehensive and successful transformation process at SGL Carbon, says CEO Dr. Torsten Derr.

Earnings development of SGL CarbonThe increase in EBITDApre by 47.2 million to 140.0 million was driven in particular by the Business Units Graphite Solutions ( 24.8 million), Composite Solutions ( 16.8 million) and Carbon Fibers ( 13.1 million). In line with the positive development of the operating business units, the EBITDApre margin also shows a significant improvement from 10.1% to 13.9% in fiscal year 2021.

EBITDApre and EBITpre do not include one-off effects and non-recurring items totaling 30.7 million. The one-off effects are mainly composed of: Income of 19.7 million from the sale of two properties not required for operations, earnings of 18.2 million from the restructuring of pension obligations, and other effects amounting to minus 7.2 million.

Taking into account the described one-off effects and non-recurring items, as well as depreciation and amortization of 60.3 million, reported EBIT amounted to 110.4 million (2020: minus 93.7 million).

Based on the pleasing business performance, the successes of the transformation and non-operating one-off effects and non-recurring items of 30.7 million, the Group returns to positive earnings of 75.4 million in 2021 after three years.

Net financial debt and equityIn fiscal 2021, net financial debt was reduced significantly by 28.0% to 206.3 million compared to the end of 2020 ( 286.5 million). A main driver of this development was the 79.1 million increase in cash and cash equivalents to 220.9 million (Dec. 31, 2020: 141.8 million), based in particular on free cash flow of 111.5 million (2020: 93.9 million). This includes cash inflows from the sale of properties not required for operations in the amount of 30.6 million.

Equity attributable to shareholders of the parent company rose significantly by 150.8 million ( 68.3%) to 371.5 million in the financial year 2021 (December 31, 2020: 220.7 million). Correspondingly, the equity ratio increased to 27.0% (Dec. 31, 2020: 17.5%).

Due to the significantly improved earnings situation, return on capital employed (ROCE) also increased from 1.8% in the previous year to 8.0%.

The primary objective for fiscal year 2021 was to secure the financial stability of SGL Carbon. With the significant reduction in net financial debt by almost one third, the improvement in the equity ratio by almost ten percentage points, and the substantial increase in return on capital, we were able to considerably strengthen SGL Carbons financial base, explains Thomas Dippold, CFO of SGL Carbon.

Development of the Business UnitsAs the largest Business Unit with a 44% share of Group sales, Graphite Solutions contributed 443.6 million to Group sales in 2021 (2020: 407.5 million). The sales increase of 8.9% is based in particular on the positive development of the important market segments Semiconductor & LED as well as Automotive & Transportation. Especially volume as well as margin effects from the product/customer mix led to a significant increase in EBITDApre of 39.3% to 87.9 million in the Graphite Solutions segment.

After a Corona-related difficult previous year, the Carbon Fibers Business Unit increased sales significantly by 11.0% to 337.2 million in 2021 (2020: 303.9 million) and accounted for 33% of Group sales. In particular, sales to automotive customers contributed to the sales plus. The segments EBITDApre also developed positively, rising by 31.6% to 54.5 million (2020: 41.4 million). As of the second half of 2021, the energy-intensive business unit had to cope with drastically increased and volatile energy prices, which could not be fully compensated by cost savings and by passing prices on to customers.

The Composite Solutions Business Unit contributed 122.5 million (2020: 88.6 million) or 12% to Group sales. The year-on-year increase of 38.3% in 2021 is mainly based on higher volumes from existing customer contracts and the ramp-up of new orders from the automotive industry. Correspondingly, EBITDApre of the division developed pleasingly and turned positive for the first time at 12.1 million (2020: minus 4.7 million).

Only the Process Technology Business Unit, with a slight decline in sales of 1.1% to 87.2 million (2020: 88.2 million), was not yet able to participate in the general economic recovery. However, incoming orders in Q4 2021 show a pick-up in demand. Thanks to the success of the transformation initiatives, the Process Technology unit improved EBITDApre from 3.4 million to 4.7 million in 2021 despite a slight decline in sales.

As expected, sales in the Corporate segment were down year-on-year at 16.5 million (2020: 31.2 million), partly due to lower rental income resulting from the sale of non-operating properties. Despite the 14.7 million decrease in sales, EBITDApre for the segment fell
See more stories from sgl

More from SGL


SGL Carbon reports best operating result in more than ten years - transformation successfully completed

SGL Carbon demonstrated the resilience of its business model in a challenging ma...


Best apprentice in Germany at SGL's Meitingen site

For many years, SGL Carbon has been providing vocational training in a wide range of occupations, whether at our sites in Bonn, Meitingen, Willich, Innkreis, or...


SGL Carbon welcomes trade minister in Muir of Ord as recruitment drive continues

On 06 March 2023, SGL Carbon's fiber production plant in Muir of Ord has welcomed Trade Minister Ivan McKee as he tours the Highlands meeting businesses mak...


SGL Carbon sold its business activities at the Gardena site (USA)

As part of the realignment of SGL Carbon, strategic options were developed for all Business Units. In this context, the site network of the Business Unit Compos...


SGL apprentices support the sheltered workshop Dominikus-Ringeisen-Werk

Last December, apprentices at SGL Carbon in Meitingen again had a small sales booth at the Christmas market. The proceeds have now been donated to the Dominikus...


Dr. h.c. Susanne Klatten resigns as Chairwoman of the Supervisory Board of SGL Carbon SE at the end of the next Annual General Meeting

Dr. h.c. Susanne Klatten informed the Board of Management of SGL Carbon SE to re...


Spotlight on dual training: US experts at SGL Carbon in Meitingen

On February 10, 2023, SGL Carbon welcomed a US delegation in Meitingen to learn about the dual training program in Germany. The delegation, a total of 19 manufa...


SGL Carbon: Moody's rating upgrade

SGL Carbon SEs corporate family rating was raised from B3 to B2 by the renowned rating agency Moodys Investors Services . The rating of the guaranteed senior s...


Stumbling block in memory of forced labor laid in Meitingen

At the former Siemens-Plania in Meitingen, a predecessor company of todays SGL Carbon, a total of more than 200 foreign prisoners of war and civilian workers we...


SGL Carbon successfully overcomes current challenges

After 270.9 million in Q1 2022 and 278.9 million in Q2, SGL Carbon increased its consolidated sales to 304.1 million in Q3 2022. After nine months, this corr...


10 years of the Ort im Innkreis site - SGL Carbon's Austrian plant celebrates anniversary

With around 170 employees, fiber composite components for the automotive industr...


Disclosure of material transactions with related parties in accordance with section 111c German Stock Corporation Act (Aktiengesetz)

SGL CARBON SE Wiesbaden - ISIN DE00723501 - Disclosure of material transactio...


Repurchase Invitation by SGL CARBON SE (EUR 159,300,000 3.0 per cent convertible bonds due 2023 (ISIN DE000A2G8VX7))

Repurchase Invitation by SGL CARBON SE (the Company) to the holders of its E...


SGL Carbon SE - successful placement of 101.9 million convertible bonds due 2027

Wiesbaden, September 14 2022.SGL Carbon SE (the Issuer or SGL Carbon) today successfully completed the placement of unsubordinated, unsecured convertible bond...


Adhoc notification: SGL Carbon SE increases sales and earnings guidance again for the current fiscal year 2022

(07:33 PM) Due to the continued good business development, especially in the Car...


SGL Carbon trains its own junior staff: 23 new apprentices in Bonn and Meitingen

SGL Carbon continues to focus on training its own young talents. This year, SGL Carbon GmbH in Meitingen is training two industrial mechanics, two cutting machi...


SGL Carbon celebrates the return of personal encounters and a product anniversary at ACHEMA 2022

Finally live again: From August 22 to 26, 2022, the process industry will meet a...


SGL Carbon expands capacities for graphite products for use in the semiconductor industry

SGL Carbon will significantly increase capacities for the production of graphite...


SGL Carbon remains on track

Despite uncertain general conditions in the first six months 2022, SGL Carbons business model is proving its resilience. After 270.9 million in Q1 2022, SGL Ca...


Exchange between SGL apprentices and employees of the Dominikus Ringeisen plant

On July 12, 2022, six apprentices who are currently completing their first year of training at SGL Carbon or at Brembo SGL, a joint venture belonging to SGL, vi...


Meitingen site of SGL Carbon celebrates 100th anniversary

It all started with electric street lighting in Berlin, as well as electrically conductive components for electric trains and the melting of steel - the industr...


Adhoc notification: SGL Carbon raises sales and earnings guidance for 2022

(09:00 AM) Based on the good business development in all four Business Units as well as the mostly successful passing on of increased costs for raw materials, e...


fitforJOB! 2022 in Augsburg

On 21.05.2022, the IHK and the Handwerkskammer held the exhibition for the first time after 2019 again in presence. With about 3000 interested visitors and 155 ...


After Moody's, Standard & Poor's also upgrades SGL Carbon's rating

Standard & Poors Global Ratings (S&P) raises its long-term rating for SGL Carbon to B- and its issue rating on its financial instruments to B. The outlook for t...


Great approval at this year's Annual General Meeting of SGL Carbon

Due to Corona, our Annual General Meeting (AGM) was again held virtually in the head office in Wiesbaden on May 17, 2022. Registered shareholders were able to v...


SGL Carbon continues dynamic business development in Q1 2022

SGL Carbon generated consolidated sales of 270.9 million in Q1 2022 (Q1 2021: 241.5 million). This corresponds to an increase of 29.4 million or 12.2% compar...


"The team spirit in the group has grown"

Arousing the viewers interest right at the beginning of a video - the students of Class 10e of the Realschule Meitingen clearly demonstrated this during their f...


Adhoc notification: Termination of a heritable building right to a non-operating property

(03:00 PM) SGL Carbon SE today signed an agreement on the cancellation of its ex...


Congratulations to our apprentices in Meitingen and Bonn on their successful completion of training

A total of eleven apprentices from Meitingen and six apprentices from Bonn compl...


Initiated transformation shows effect in sales and earnings 2021 - SGL Carbon tops sales billion again

Rising demand in almost all market segments led to a 9.5% increase in Group sale...


SGL Carbon supports "DigitalSchoolStory" project at Meitingen secondary school

Tomorrows working world will be largely characterized by digital tools and digital communication. In a new type of project, the students of Class 10e at the Rea...


CO2 reduction of 50% by 2025

As an energy-intensive company, SGL Carbon has a special responsibility to reduce CO2 emissions. Therefore, one of our key ESG targets is to reduce our own CO2 ...


Anniversary year for SIGRAFLEX

SIGRAFLEX is our product brand for flexible graphite for use as a versatile and reliable sealing material for the chemical industry and many other sectors as we...


ESG in focus

We make our sustainability efforts measurable. We regularly review our sustainability progress and improve our ESG strategy. In dialog with our stakeholders, we...


Excellent trainees at SGL Carbon in Bonn

Our SGL site in Bonn looks back on a long tradition as a successful training company and also offers new training courses time and again. A new branch with a pr...


Rdiger Krieger becomes new plant manager of our Meitingen site

As of January 17, 2022, R diger Krieger has succeeded Markus Partik as manager of the SGL Carbon site in Meitingen. In addition, he also took over the managemen...


Rdiger Krieger as new plant manager of Meitingen

As of January 17, 2022, R diger Krieger has succeeded Markus Partik as manager of the SGL Carbon site in Meitingen. In addition, he also took over the managemen...


SGL Carbon receives SPE Innovation Award for glass fiber leaf spring

On November 10, 2021, the Automotive Division of the Society of Plastics Engineers (SPE ) in Michigan hosted its 50th annual Automotive Innovation Awards Gala, ...


SGL Carbon - Q3 2021 also confirms the encouraging upward trend

Following consolidated sales of 241.5 million in Q1 2021 and 255.2 million in Q2 2021, Q3 2021 confirms SGL Carbons encouraging sales performance with 246.8 ...


SGL Carbon opens new apprenticeship center at its site in Nowy Scz, Poland

At the beginning of September 2021, SGL Graphite Solutions Polska sp. z o.o. in Nowy S cz held the opening ceremony for a new apprenticeship center. As part of...


SGL Carbon installs photovoltaic system at its site in Ort im Innkreis, Austria

SGL Carbon now produces its own green electricity at its site in Ort im Innkreis. A photovoltaic system was installed on the roof of the plant. In cooperation w...


SGL Carbon puts additional state-of-the-art soft felt line into operation

SGL Carbon is expanding and modernizing its soft felt production. The company invested a single digit million euros in the last two years into an additional car...


SGL Carbon invests into modernization of its Morganton site

SGL Carbon is modernizing its production for porous and extruded graphite investing around million 10 USD at its site in Morganton, North Carolina, USA until th...


SGL Carbon delivers strong first half of 2021 - transformation program and improving order situation show first successes

While the past fiscal year 2020 was still characterized by a Corona-related slum...


SGL Carbon with solid development in the first quarter - Outlook for 2021 fully confirmed

SGL Carbons consolidated sales amounted to 241.5 million in the first quarter (...


Adhoc notification: SGL Carbon receives 42.9 million euros funding under IPCEI for graphite anode materials (GAM) in lithium-ion batteries

(09:24 AM) SGL Carbon GmbH, a 100% subsidiary of SGL Carbon SE, today received a...