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% compared to the same period of the prior year. All four business units contributed to the pleasing increase in sales. In parallel, adjusted EBITDA improved by 11.5% to 36.8 million in the reporting period.
Sales development
In the first three months of fiscal 2022, the sales increase of 29.4 million was driven by all four operating business units: Graphite Solutions ( 11.3 million), Carbon Fibers ( 6.6 million), Composite Solutions ( 7.2 million) and Process Technology ( 6.0 million).
In particular, sales to customers in the automotive and semiconductor industries and a significant recovery in the industrial applications segment were key factors in the increase in sales. Sales of the Process Technology business unit to customers in the chemical industry also developed pleasingly. The effects of the war in Ukraine, which has been ongoing since the end of February 2022, had only a little impact on SGL Carbons sales performance in the 1st quarter.
Earnings development
Despite the increasingly difficult market environment in the course of Q1 2022, associated with temporary supply and production bottlenecks at our customers, temporarily interrupted transport routes, and significantly higher energy prices, SGL Carbon was able to keep the adjusted EBITDA margin almost stable year-on-year at 13.6%.
Adjusted EBITDA increased by 11.5% to 36.8 million in the reporting period. Higher capacity utilization in the business units and product mix effects contributed to the improvement in earnings, together with the cost savings achieved as a result of the transformation. By contrast, higher raw material, energy and logistics costs as of end of February 2022 had a negative impact on earnings. The Carbon Fibers business unit was particularly affected by the energy price increases. One-time expenses of 9.2 million in conjunction with energy transactions burdened the Carbon Fibers business unit in the 1st quarter of 2022.
To secure our production and delivery capabilities, around 85% of the energy requirements of the entire SGL Carbon for 2022 are price-hedged.
Adjusted EBITDA and EBIT do not include in total positive one-time effects and special items of 8.5 million, among other things from the termination of a heritable building right to a site no longer in use. Taking into account the one-time effects and special items presented as well as depreciation and amortization of 14.1 million, reported EBIT increased by 83.5% to 31.2 million (Q1 2021: 17.0 million). The net profit for the period developed correspondingly and more than tripled from 6.1 million to 21.4 million in a quarter-on-quarter comparison.
Outlook
The sales and earnings figures for the 1st quarter 2022 confirm the stable demand from our market segments. Price increases and volatility in the availability of raw materials, transportation services and energy were largely offset by savings from the transformation program and pricing initiatives at our customers.
For 2022, we continue to expect volatile raw material and energy prices, which were included in our forecast for 2022 at the time of planning. However, there are uncertainties about the extent and duration to which we and our customers will be affected by the impact of the war in Ukraine or temporary supply chain disruptions due to the lockdowns in China. Therefore, our outlook for fiscal 2022 does not include supply and/or production interruptions at our customers or the impact of a possible energy embargo that cannot be estimated at this time.
Our forecast also implies that factor cost increases can be at least partially passed on to our customers through pricing initiatives. We have also included the revenue and earnings impact from the expiry of a supply contract with a major automobile manufacturer at the end of June 2022 in our forecast.
Thanks to the success of our transformation with leaner structures, clear responsibility for sales and earnings of the business units, an increased customer and market focus, and the sustainable cost savings achieved, we are now significantly more resilient and better prepared to master the current challenges, emphasizes Dr. Torsten Derr, CEO of SGL Carbon SE.
In line with the comments made above, we confirm the sales and earnings guidance. For fiscal year 2022, consolidated sales are expected to be at the prior years level and adjusted EBITDA between 110 - 130 million. Taking into account depreciation and amortization, adjusted EBIT is forecast to be between 50 - 70 million. Furthermore, free cash flow at the end of fiscal 2022 is expected to be significantly below the prior-year level and return on capital employed (ROCE) between 5% and 7%.
Further details on business performance in the 1st quarter of 2022 can be found in the quarterly statement.
Key figures of the first quarter 2022
More from SGL
09/05/2023
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 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
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
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
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
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 will present a new 50k carbon fiber at JEC World 2023. The new SIGRAF...
28/03/2023
Based on their established and long-lasting business relationship SGL Carbon and...
23/03/2023
SGL Carbon demonstrated the resilience of its business model in a challenging ma...
20/03/2023
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
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
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
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 informed the Board of Management of SGL Carbon SE to re...
10/02/2023
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 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
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
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
With around 170 employees, fiber composite components for the automotive industr...
15/09/2022
SGL CARBON SE
Wiesbaden
- ISIN DE00723501 -
Disclosure of material transactio...
15/09/2022
Results Notice regarding the
Repurchase Invitation by
SGL CARBON SE
(the Comp...
14/09/2022
Repurchase Invitation by
SGL CARBON SE
(the Company)
to the holders of its
E...
14/09/2022
Wiesbaden, September 14 2022.SGL Carbon SE (the Issuer or SGL Carbon) today successfully completed the placement of unsubordinated, unsecured convertible bond...
06/09/2022
(07:33 PM) Due to the continued good business development, especially in the Car...
05/09/2022
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...
16/08/2022
Finally live again: From August 22 to 26, 2022, the process industry will meet a...
10/08/2022
SGL Carbon will significantly increase capacities for the production of graphite...
04/08/2022
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...
22/07/2022
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...
26/06/2022
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...
07/06/2022
(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...
02/06/2022
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 ...
24/05/2022
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...
24/05/2022
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...
05/05/2022
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...
14/04/2022
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...
30/03/2022
Composites for a Sustainable World - under this theme the JEC World, the larges...
25/03/2022
(03:00 PM) SGL Carbon SE today signed an agreement on the cancellation of its ex...
24/03/2022
A total of eleven apprentices from Meitingen and six apprentices from Bonn compl...
24/03/2022
Rising demand in almost all market segments led to a 9.5% increase in Group sale...
21/02/2022
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...
08/02/2022
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 ...
02/02/2022
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...
26/01/2022
We make our sustainability efforts measurable. We regularly review our sustainability progress and improve our ESG strategy. In dialog with our stakeholders, we...
26/11/2021
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...
26/11/2021
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...
26/11/2021
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...
22/11/2021
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 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% compared to the same period of the prior year. All four business units contributed to the pleasing increase in sales. In parallel, adjusted EBITDA improved by 11.5% to 36.8 million in the reporting period.
