SGL Carbon takes decisive countermeasures in the crisis - comparatively solid business development in the third quarter
13/11/2020
In order to sustainably strengthen the profitability and competitiveness of SGL Carbon, the Board of Management has resolved an extensive restructuring program with planned earnings improvement measures totaling more than 100 million until 2023 (compared to the base year 2019). It includes a planned socially compatible reduction in personnel of more than 500 employees as well as substantial reduction in indirect spend. From today's perspective, costs of approx. 40 million are anticipated for the implementation of the program, of which a little more than half is expected to be recognized in profit and loss in the fourth quarter of 2020.
For the full year 2020, SGL Carbon continues to expect Group sales revenues to decline by 15% to 20% and operating recurring Group EBIT to record a slightly positive result. However, outlook for Group net result is reduced to minus 130 to 150 million due to the above-mentioned measures.
Like many other companies, the corona pandemic is also having a significant impact on us. In addition, we also see structural changes in some of our markets, such as in the automotive and aerospace sector. Thanks to decisive countermeasures, we are managing the crisis relatively well operationally. In addition, with our restructuring program, we have laid the foundation for the sustainable transformation of the company towards a leaner, profitable and successful SGL Carbon", explains Dr. Torsten Derr, CEO of SGL Carbon.
Group business development influenced by the Corona pandemic, structural changes in some markets and a positive one-off effectSGL Carbons sales revenues in the third quarter at 227 million were around 10% higher than in the previous quarter. At around 15 million, operating EBIT before non-recurring items was significantly better than in the previous quarter, which was weak due to the pandemic.
In the nine-month period, however, sales fell significantly by almost 18% (no currency effect) to 683.5 million (9M/2019: 832.4 million), primarily due to the weaker business development caused by the pandemic as well as expected declines in Battery & other Energy (GMS) and capacity adjustments in Textile Fibers (CFM). Accordingly, recurring EBIT in the reporting period fell by 38% to 33.9 million (9M/2019: 54.2 million). This includes a positive one-off effect of 8.5 million from the compensation agreement with the buyer of a former business unit (Showa Denko).
The net financial result improved significantly in the nine-month period to minus 23.4 million (previous year: minus 32.6 million). The result from continuing operations before income taxes changed significantly from minus 59.4 million in the prior year period to plus 1.4 million in the reporting period, as the previous year contained an impairment loss of around 75 million. After taxes, the consolidated net result for the reporting period was minus 3.9 million compared to minus 74.5 million in the same period of the previous year.
Free cash flow improved significantly to approx. 44 million in 9M/2020 (9M/2019: minus 9.6 million). As a result, liquidity developed very positively to approx. 167 million as of September 30, 2020, due to strict spend control and non-capital market related funding measures (year-end 2019: 137 million).
Business development by segmentComposites - Fibers & Materials (CFM): Second quarter marked the trough in sales and earnings development - significant recovery in the third quarterWhile the first quarter 2020 in the reporting segment CFM was still relatively unaffected by the Corona crisis, the effects were clearly visible in the second quarter 2020. Fortunately, the negative effects eased again in the third quarter, so that the development - particularly in earnings - was substantially better than expected at the half year mark. Compared to the previous quarter, CFM sales revenue increased by 20% to 97.7 million. Recurring EBIT even increased significantly from minus 1.9 million to 8.8 million. Compared to the third quarter of 2019, however, sales revenue decreased by approx. 11% while recurring EBIT improved significantly from minus 4.6 million in Q3/2019 to 8.8 million in Q3/2020.
In a nine-month comparison, sales revenue declined by approximately 14% (no meaningful currency effect) to 283.4 million. The largest percentage decline was recorded in the loss-making market segment Textile Fibers. This is due to the fact that, as part of the earnings improvement measures, SGL Carbon had at the end of 2019 started to convert one acrylic fiber line to precursor and to idle two acrylic fiber lines. Corona-related declines were recorded in the market segments Automotive and Industrial Applications. In contrast, business with the wind energy sector increased by more than 60% and thus again developed more favorably than initially anticipated. The Aerospace business remained relatively stable on a low level.
Recurring EBIT improved from minus 1.8 million in the prior year period to 10.6 million in the first nine months 2020. The substantially improved results in the wind energy business and the positive effects from the earnings improvement measures implemented at th
LINK: | https://www.sglcarbon.com/en/company/press/press-information/press-rep... |
See more stories from sgl |
More from SGL
22/03/2024
SGL Carbon achieves annual targets for 2023 and invests more in growth markets
In fiscal year 2023, SGL Carbon achieved the sales and earnings targets set at the beginning of the year despite the drop in demand from the important wind mark...
21/03/2024
Adhoc notification: SGL Carbon: CEO Dr. Torsten Derr will not extend his contract
(10:15 AM) Wiesbaden, March 21, 2024. The CEO of SGL Carbon SE, Dr. Torsten Derr...
21/03/2024
SGL Carbon CEO Dr. Torsten Derr will not extend his contract
The CEO of SGL Carbon SE, Dr. Torsten Derr, informed the Chairman of the Supervisory Board today that he will not extend his contract, which expires on May 31, ...
18/03/2024
Young professionals successfully complete vocational training at SGL's Meitingen site
Seven young professionals completed their vocational training at SGL Carbon in M...
06/03/2024
Another fundraising campaign by Meitingen apprentices in aid of the Dominikus-Ringeisen-Werk
The sale of the so-called angel curls once again proved to be a big seller at th...
28/02/2024
SGL Carbon appoints Dr. Denis Hinz as new Head of the Business Unit Carbon Fibers
As of March 1, 2024, Dr. Denis Hinz will become new Head of SGL Carbons Carbon F...
23/02/2024
Adhoc notification: SGL Carbon evaluates strategic options for the Business Unit Carbon Fibers
(06:11 PM) Wiesbaden, February 23, 2024. The Board of Management of SGL Carbon S...
23/02/2024
SGL Carbon evaluates strategic options for the Business Unit Carbon Fibers
SGL Carbon SE is currently evaluating various strategic options for the Business Unit Carbon Fibers (CF). These include a possible partial or complete divestmen...
06/02/2024
Innovation Day in Wackersdorf: SGL Carbon and partner companies present the latest developments in fiber composite technology
In cooperation with the Bavarian leading-edge cluster MAI Carbon of Composites U...
31/01/2024
SGL Carbon builds on diverse natural graphite supply chains and remains a reliable partner for its customers
The supply capability of SGL Carbon, a leading international supplier of carbon-...
18/01/2024
Technology partnership with E-Works Mobility - SGL Carbon supplies battery case made of glass fiber reinforced plastic
The Munich-based company E-Works Mobility, which specializes in the development ...
04/01/2024
The climate-friendly carbon fiber from SGL Carbon - up to 50% less CO2 emissions
SGL Carbon relies on climate-friendly manufacturing processes in the production of its own carbon fibers. By using renewable energy, the carbon footprint of SGL...
22/11/2023
Janine Kretzschmar honored as top apprentice with Gnter Schwank Prize
This years prestigious G nter Schwank Prize goes to our former apprentice Janine Kretzschmar. She completed her training at the Meitingen site as a process mech...
20/11/2023
Second place at the AVK Innovation Award 2023 in the Products and Applications category
SGL Carbon took second place in the Products and Applications category at the AV...
02/11/2023
SGL Carbon's business performance after nine months confirms the announced stabilization and investment year
Due to the better-than-expected sales and earnings development of the business u...
25/10/2023
Ceremonial laying of the foundation stone at Brembo SGL Carbon Ceramic Brakes (BSCCB) at the SGL Carbon site in Meitingen
The expansion of production capacities is a significant milestone for the Brembo...
12/09/2023
Joint venture Brembo SGL Carbon Ceramic Brakes (BSCCB) to expand production capacity in Germany and Italy
SGL Carbon and Brembo agreed to expand production capacities for the joint ventu...
07/09/2023
SGL Carbon trains its own junior staff: 32 new apprentices start at Meitingen, Bonn and Willich sites
SGL Carbon continues to focus on training its own junior staff and welcomes 32 n...
05/09/2023
Safety Day 2023 at SGL Carbon: A day dedicated to safety
As the health of employees is a top priority at SGL Carbon, the second global Safety Day was held at all sites at the end of August. To raise awareness of safet...
10/08/2023
Successful completion of training at SGL's Meitingen site
With an overall grade point average of 2.0, ten apprentices completed their vocational training at SGL Carbon in Meitingen this summer. The young skilled worker...
03/08/2023
SGL Carbon with solid business performance at Group level. Confirmation of the full-year guidance for 2023.
Despite the increasingly difficult economic environment, SGL Carbon was able to ...
27/07/2023
Two new logistics halls at the SGL sites in Innkreis, Austria
On July 21, 2023, a 500 m logistics hall was inaugurated at SGL Carbons Austrian site in Ort im Innkreis, including an adjoining hall of approximately 150 m f...
24/07/2023
Adhoc notification: Balance sheet impairment in the Carbon Fibers Business Unit. SGL Carbon SE confirms full-year guidance 2023
(04:40 PM) Wiesbaden, July 24, 2023. According to preliminary figures for H1 202...
10/07/2023
Successful completion of the refinancing of SGL Carbon
Just two years ago, SGL Carbons net debt amounted to 287 million with a leverage of 3.1. Today, SGL Carbon reports that it has successfully completed its refin...
07/07/2023
Andreas Klein to become new Head of Business Unit Graphite Solutions
Effective October 1, 2023, Andreas Klein will become Head of SGLs largest Business Unit Graphite Solutions, succeeding Burkhard Straube. Mr. Klein holds a degr...
06/07/2023
Great interest in training at SGL Carbon in Meitingen
To mark the 75th anniversary of apprenticeships at the Meitingen site, the first Apprenticeship Day was held on July 4. With around 170 visitors to the SGL Carb...
21/06/2023
Adhoc notification: SGL Carbon SE to issue approx. 120 million convertible bonds due 2028
(07:38 AM) Wiesbaden, June 21 2023. The Management Board of SGL Carbon SE (the I...
21/06/2023
SGL Carbon SE - successful placement of 118.7 million convertible bonds due 2028
Wiesbaden, June 21 2023. SGL Carbon SE (the Issuer or SGL Carbon) today successfully completed the placement of unsubordinated, unsecured convertible bonds du...
09/05/2023
Annual General Meeting approves all items on the agenda
The shareholders of SGL Carbon SE approved all agenda items at the Annual General Meeting on May 9, 2023. The Annual General Meeting, which was held virtually, ...
05/05/2023
SGL Carbon with solid business development in Q1 2023
SGL Carbon generated Group sales of 283.7 million in Q1 2023 (Q1 2022: 270.9 million). This corresponds to an increase of 12.8 million or 4.7% compared to th...
04/05/2023
Girls' and Boys'Day at the SGL sites in Bonn and Meitingen
On the occasion of Girls and BoysDay in Germany on April 27, 2023, we opened our doors in Bonn and Meitingen to interested children and young people who wanted ...
03/05/2023
Alexander Miehling as new site manager of Meitingen
Effective May 01, 2023, Alexander Miehling has succeeded R diger Krieger as site manager of SGL Carbon in Meitingen, as well as taking over the management of SG...
28/04/2023
SGL Carbon consolidates site network
As part of the realignment of SGL Carbon, clear profitability criteria were defined for all four Business Units and strategic options were developed. The path o...
19/04/2023
Successful completion of training at SGL sites in Bonn and Meitingen
Our apprentices at the Bonn and Meitingen sites achieved excellent exam results. A total of 17 apprentices from this years graduating class completed their voca...
29/03/2023
SGL Carbon expands material portfolio with new carbon fiber for high-strength pressure vessels
SGL Carbon will present a new 50k carbon fiber at JEC World 2023. The new SIGRAF...
28/03/2023
SGL Carbon to Supply Key Graphite Components for Wolfspeed Silicon Carbide Production Facilities
Based on their established and long-lasting business relationship SGL Carbon and...
23/03/2023
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...
20/03/2023
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...
08/03/2023
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...
17/02/2023
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...
15/02/2023
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...
14/02/2023
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...
10/02/2023
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...
06/02/2023
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...
18/11/2022
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...
03/11/2022
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...
27/09/2022
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...
15/09/2022
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...
15/09/2022
Results Notice regarding the Repurchase Invitation by SGL CARBON SE (EUR 159,300,000 3.0 per cent. convertible notes due 2023 (ISIN DE000A2G8VX7))
Results Notice regarding the Repurchase Invitation by SGL CARBON SE (the Comp...