Sony Pixel Power calrec Sony

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

23/03/2023

SGL Carbon demonstrated the resilience of its business model in a challenging market environment and was again able to improve sales and earnings in fiscal year 2022 following 2021. All four business units contributed to this success.

Sales in fiscal 2022 increased by 12.8% year-on-year to 1,135.9 million (previous year: 1,007.0 million). The rise in sales was mainly due to both volume effects and the successful implementation of pricing initiatives to compensate higher raw material, energy and transport prices. At 23.4%, adjusted EBITDA (EBITDApre) improved at a higher rate than sales and amounted to 172.8 million in fiscal 2022 (previous year: 140.0 million). Increased sales and the associated higher capacity utilization also contributed to the improvement in earnings, as well as focusing on market segments with higher margin potential.

We also delivered in 2022. The sales and earnings figures for 2022 confirm the successful transformation of our SGL Carbon. In the last two years, we increased our sales by 23.5% and even improved our EBITDApre by 86.2%. EBITDApre margin in 2022 is 15.2%. As a result, we have almost achieved our medium-term targets for 2025 set in 2020 by the end of 2022. A great success for the entire SGL workforce, says CEO Dr. Torsten Derr.

Earnings development of SGL CarbonThe increase in EBITDApre by 32.8 million to 172.8 million was mainly driven by the Graphite Solutions business unit (+ 30.6 million). The Composite Solutions (+ 7.9 million) and Process Technology (+ 5.2 million) business units also contributed to the improvement in profitability. Although the Carbon Fibers business unit was able to offset the loss of a lucrative supply contract with an automotive customer in terms of sales with new orders from the wind energy sector, but these sales showed a significantly lower margin level. Accordingly, EBITDApre of this business unit decreased by 11.2 million to 43.2 million (previous year: 54.5 million).

Taking into account net one-off effects and non-recurring items of 8.9 million (previous year: 30.7 million) and depreciation and amortization of 60.8 million (previous year: 60.3 million), reported EBIT amounted to 120.9 million (2021: 110.4 million). This corresponds to an increase of 9.5%.

As a result of the pleasing business performance, the successes of the transformation and non-operating one-off effects and non-recurring items ( 8.9 million), a positive Group's net profit of 126.9 million (previous year: 75.4 million) was achieved in 2022. It should be noted that consolidated net income includes tax income of 31.3 million (previous year: minus 6.2 million). This development is mainly due to valuation adjustments on deferred tax assets amounting to 41.8 million, based on the good business development combined with positive earnings prospects in the USA. Current tax expenses amounted to 11.4 million in 2022 (previous year: 11.9 million).

Net financial debt and equityIn fiscal 2022, net financial debt was reduced significantly by 17.2% to 170.8 million compared with the end of 2021 ( 206.3 million). The main reason for the decrease is the repayment of financial liabilities in the amount of 29.0 million. Free cash flow decreased from 111.5 million to 67.8 million in 2022. In this context, it should be taken into account that in the previous year, free cash flow included cash inflows of 30.6 million from the sale of land not required for operations.

After 2021, the equity ratio increased again to 38.5% at the end of 2022 (previous year: 27.0% I 2020: 17.5%). Due to the significantly improved earnings situation, the return on capital employed (ROCE) also rose from 8.0% in the previous year to 11.3% in 2022.

In fiscal year 2022, we further improved SGL Carbons financial structure. As a result of the reduction in net debt, the leverage ratio at the end of 2022 was 1.0, compared to 1.5 as of December 31, 2021. We are particularly proud of the early refinancing of our convertible bond in September 2022. The fast placement of the new convertible bond in a volatile market environment has shown that investors trust us again. This is also evidenced by the upgrade of Moodys Corporate Family Rating from B3 to B2 at the beginning of this year, explains Thomas Dippold, CFO of SGL Carbon.

Development of the business unitsAs the largest business unit with a share of Group sales of around 45%, Graphite Solutions contributed 512.2 million to Group sales in 2022 (previous year: 443.6 million). The 15.5% increase in sales is based in particular on the positive development of the important market segments Semiconductor & LED and Industrial Applications. Compared to the previous year, sales to customers in the semiconductor & LED industry increased by 49.6%, driven in particular by increasing demand of materials and components for the production of silicon carbide-based high-performance semiconductors. Combined with the increase in sales, GS EBITDApre improved by 34.8% to 118.5 million (previous year: 87.9 million). Accordingly, the EBITDApre margin increased from 19.8% to 23.1%. Volume effects due to higher sales as well as margin effects from the product and customer mix had a positive impact. Especially the higher sales with customers from the semiconductor industry should be taken into account.

In fiscal 2022, the Process Technology(PT)business unit benefited from the good order situation in recent months and increased its sales by 21.9% to 106.3 million. The main clients of the PT business unit are customers from the chemical industry. The positive development of PT is also reflected in EBITDApre which rose from 4.7 million in the same period of the previous year to 9.9 million. Higher capacity utilization and the successful passing on of increased raw material costs led to an improvement in the EBITDApre margin from 5.4% to 9.
LINK: https://www.sglcarbon.com/en/newsroom/news/press-report/sgl-carbon-rep...
See more stories from sgl

More from SGL

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...

14/09/2022

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...

14/09/2022

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...

06/09/2022

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...

05/09/2022

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...