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 market and an increasingly challenging economic environment. Group sales decreased slightly by 46.8 million (minus 4.1%) to 1,089.1 million (previous year: 1,135.9 million). At 168.4 million, adjusted EBITDA, a key performance indicator for the Group, was also down slightly (minus 2.5%) compared to the previous year ( 172.8 million) but was clearly within the forecast range for 2023 of 160 to 180 million.
While the positive sales development of the Graphite Solutions ( 53.5 million to 565.7 million), Process Technology ( 21.6 million to 127.9 million) and Composite Solutions ( 0.8 million to 153.9 million) business units had a positive effect, the Carbon Fibers business unit had a negative impact on Group sales with a sales decline of 122.3 million to 224.9 million.
Demand for carbon fibers for the wind industry fell dramatically at the beginning of 2023. Construction activities for offshore wind turbines, in which our carbon fibers are needed, almost came to a standstill. High raw material costs and interest rates as well as low acceptance prices and high regulatory barriers are currently making the construction of new wind parks almost unprofitable, particularly in Europe. This has also hit our business unit Carbon Fibers (CF) hard. Accordingly, CFs sales and earnings declined significantly. Nevertheless, the record results of the three other SGL business units almost completely compensated for this downturn, meaning that we still achieved our targets for 2023, explains CEO Dr. Torsten Derr.
Earnings development of SGL CarbonThe contribution of the individual business units to SGL Carbons adjusted EBITDA reflects the sales development already described. Despite the volume-related drop in adjusted EBITDA of the reporting segment Carbon Fibers from 43.2 million in 2022 to 7.2 million in the reporting period (minus 36.0 million), adjusted Group EBITDA decreased by only 4.4 million (minus 2.5%) to 168.4 million. The drop in the adjusted EBITDA of CF was offset by the positive EBITDA development of the three other business units: Graphite Solutions ( 15.5 million to 134.0 million), Process Technology ( 12.5 million to 22.4 million) and Composite Solutions ( 2.2 million to 22.2 million).
Despite the decline in demand and the associated decrease in earnings at Carbon Fibers, the adjusted EBITDA margin even improved slightly year-on-year from 15.2% to 15.5% in 2023 thanks to the good results of the other business units.
The weak business development of Carbon Fibers led to an impairment loss of 44.7 million on the assets of this business unit in the first half of 2023, which accounted for the majority of the one-off effects and special items of minus 52.9 million in 2023. Taking into account the one-off effects and special items as well as depreciation and amortization of 58.9 million (previous year: 60.8 million), reported EBIT amounted to 56.6 million in 2023 (previous year: 120.9 million).
The financial result worsened by 7.4 million year-on-year to minus 34.2 million (previous year: minus 26.3 million). This is due in particular to higher interest expenses for financial liabilities and pensions amounting to minus 30.7 million (previous year: minus 24.3 million). Due to the business development described above as well as the non-operating one-off effects and special items, in particular the impairment in the CF segment ( 44.7 million), consolidated net income decreased to 41.0 million in 2023 (previous year: 126.9 million). It should be noted that the consolidated net income includes tax income of 19.3 million (previous year: 31.3 million). This development is mainly due to valuation adjustments on deferred tax assets in the amount of 31.0 million based on the good business performance combined with positive earnings prospects in the USA (previous year: 41.8 million).
Net financial debt and equityAs in previous years, net financial debt continued to decrease in the 2023 financial year and amounted to 115.8 million as of December 31, 2023 (previous year: 170.8 million), which corresponds to a reduction of 32.2% compared to the previous year. This is due in particular to the increase in free cash flow to 95.6 million (previous year: 67.8 million). The leverage factor was 0.7 after 1.0 in 2022.
At 87.1 million, investments (capex) in intangible assets and property, plant and equipment in 2023 were around 64.7% higher than in the previous year ( 52.9 million) and significantly higher than depreciation and amortization of 58.9 million. Almost two thirds of these investments were allocated to Graphite Solutions and in particular in the expansion of production capacities for specialty graphite products for high-temperature processes, which are required in the semiconductor, LED and solar industries. Equity attributable to shareholders of the parent company increased slightly by 6.3% to 605.3 million in the 2023 financial year (previous year: 569.3 million). The equity ratio increased accordingly to 41.1% (previous year: 38.5%). At 11.3%, the return on capital employed (ROCE calculated on adjusted EBIT) remained constant at the previous years level.
Development of the business unitsIn fiscal year 2023, the largest business unit Graphite Solutions (GS) accounted for 51.9% or 565.7 million of SGL Carbons consolidated sales (previous year: 45.1% I 512.2 million). The 10.4% increase in sales is based on the dynamic development of the important Semiconductor & LED market segment, particularly in the area of silicon carbide-based high-performance semiconductors. Accordingly, sales with customers in the Semiconductor/LED market segment increased by 40.1% compared to the previous year and now ac
More from SGL
26/04/2024
Once again this year, SGL Carbon opened its doors to interested children and young people. On the occasion of the German Girls and Boys Day, which took place on...
22/03/2024
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
(10:15 AM) Wiesbaden, March 21, 2024. The CEO of SGL Carbon SE, Dr. Torsten Derr...
21/03/2024
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
Seven young professionals completed their vocational training at SGL Carbon in M...
06/03/2024
The sale of the so-called angel curls once again proved to be a big seller at th...
28/02/2024
As of March 1, 2024, Dr. Denis Hinz will become new Head of SGL Carbons Carbon F...
23/02/2024
(06:11 PM) Wiesbaden, February 23, 2024. The Board of Management of SGL Carbon S...
23/02/2024
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
In cooperation with the Bavarian leading-edge cluster MAI Carbon of Composites U...
31/01/2024
The supply capability of SGL Carbon, a leading international supplier of carbon-...
18/01/2024
The Munich-based company E-Works Mobility, which specializes in the development ...
04/01/2024
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
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
SGL Carbon took second place in the Products and Applications category at the AV...
02/11/2023
Due to the better-than-expected sales and earnings development of the business u...
25/10/2023
The expansion of production capacities is a significant milestone for the Brembo...
12/09/2023
SGL Carbon and Brembo agreed to expand production capacities for the joint ventu...
07/09/2023
SGL Carbon continues to focus on training its own junior staff and welcomes 32 n...
05/09/2023
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
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
Despite the increasingly difficult economic environment, SGL Carbon was able to ...
27/07/2023
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
(04:40 PM) Wiesbaden, July 24, 2023. According to preliminary figures for H1 202...
10/07/2023
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
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
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
(07:38 AM) Wiesbaden, June 21 2023. The Management Board of SGL Carbon SE (the I...
21/06/2023
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
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...
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 market and an increasingly challenging economic environment. Group sales decreased slightly by 46.8 million (minus 4.1%) to 1,089.1 million (previous year: 1,135.9 million). At 168.4 million, adjusted EBITDA, a key performance indicator for the Group, was also down slightly (minus 2.5%) compared to the previous year ( 172.8 million) but was clearly within the forecast range for 2023 of 160 to 180 million.
