Sony Pixel Power calrec Sony

SGL Carbon's business performance after nine months confirms the announced stabilization and investment year

02/11/2023

Due to the better-than-expected sales and earnings development of the business units Graphite Solutions, Process Technology and Composite Solutions, SGL Carbons consolidated sales for the first nine months amounted to 821.7 million (9M 2022: 853.9 million) and were only slightly (3.8%) below the previous years level. As a result, the continued weak business development of the Carbon Fibers unit can almost be compensated at group level. Accordingly, the adjusted EBITDA of the Group also decreased only slightly by 4.5% to 130.0 million (9M 2022: 136.1 million).

Graphite Solutions (GS) is the Groups largest sales driver after nine months in 2023 with a 9.4% increase in sales to 418.4 million (9M 2022: 382.5 million). The rise in sales is based on business with customers from the semiconductor industry and here in particular on the high demand for graphite components for the silicon carbide-based semiconductor business. Overall, sales in the Semiconductor and LED market segment rose by 38.5% to 189.0 million in the first nine months of 2023.

The two business units Process Technology (PT) and Composite Solutions (CS) developed above expectations. With an increase in sales of 24.3%, PT contributed 95.7 million and CS 114.3 million (+3.0%) to the groups sales. CS was able to fully compensate the loss of sales due to the divestment of the business in Gardena (USA). Overall, the sales of the three business units GS, PT and CS increased by 57.9 million in a nine-month comparison. In contrast, sales and result of the Carbon Fibers (CF) business unit declined. Due to the continued insufficient demand from the wind industry, CFs sales decreased by 89.4 million or 33.2% to 179.6 million (9M 2022: 269.0 million). In the previous year, CF still benefited from the profitable automotive business in the first six months before the i3 contract ended as planned in the first half of 2022.

Earnings situation

The sales development is also reflected in SGL Carbons adjusted EBITDA (EBITDApre). Compared to the first nine months of the previous year, adjusted EBITDA was 4.5% lower at 130.0 million (9M 2022: 136.1 million). The development of the adjusted EBITDA of GS, PT and CS had a positive effect, whereas CF burdened the earnings development.

Changes in volume and product mix led to a stronger increase in adjusted EBITDA at GS of 18.5% to 99.5 million (9M 2022: 84.0 million) compared to sales growth (+9.4%). PT also performed positively, with adjusted EBITDA more than doubling to 17.0 million (9M 2022: 7.5 million). CS also made a positive contribution to the Groups adjusted EBITDA with an increase of 1.8 million (+12.2%) to 16.6 million (9M 2022: 14.8 million). On the other hand, the adjusted EBITDA of CF decreased significantly from 42.7 million to 3.2 million after nine months in 2023. Due to the lack of demand from the wind industry, the production capacity utilisation of CF dropped, so that production capacities had to be reduced and idle capacity costs burdened the result.

Taking into account depreciation and amortisation of 43.3 million, adjusted EBIT (EBITpre) after nine months amounted to 86.7 million (9M 2022: 92.2 million). The one-off effects and non-recurring items not included in the adjusted EBIT in the first nine months totalled minus 47.2 million, of which 44.7 million resulted from the impairment in the CF at the end of the first half of the year. EBIT decreased accordingly from 100.0 million to 39.5 million.

Including the slightly weaker financial result of minus 24.7 million (9M 2022: minus 22.7 million) and the income tax of 9.0 million (9M 2022: 7.8 million), the consolidated result for the first nine months 2023 amounts to 5.3 million (9M 2022 70.6 million).

Net financial debt and equity

Based on the re-financing completed in the 2nd and 3rd quarters of 2023, including the issuance of a convertible bond ( 118.7 million), the drawdown of an existing term loan ( 75 million) and the early repayment of the corporate bond (outstanding nominal value 240.0 million), financial debt (nominal) decreased to 316.0 million as at 30 September 2023 (31.12.2022: 398.1 million). Including cash and cash equivalents of 149.4 million, net financial debt also decreased slightly by 2.5% to 166.6 million (31.12.2022: 170.8 million).

Free cash flow after nine months in financial year 2023 amounts to 35.0 million and is significantly higher than the previous years figure ( 22.7 million). This was achieved despite investments of 59.1 million, which far exceeded depreciation and amortisation, and which SGL Carbon primarily used to expand production capacities for graphite components used in the semiconductor industry. Besides internal funding, customer prepayments were used for this investments, of which almost 40 million were collected already in the current financial year and are to be used quickly for further capacity expansion.

Despite the impairment in Carbon Fibers of 44.7 million in H1 2023, shareholders equity increased slightly to 599.1 million as at 30 September 2023 (31.12.2022: 569.3 million). This corresponds to an equity ratio of 42.5% (31.12.2022: 38.5%).

Based on the business performance in the first nine months 2023 and the currently prevalent market environment, SGL Carbon confirms its sales and earnings forecast 2023 and expects adjusted EBITDA to be rather at the lower end of the given range. Following strong sales and earnings growth in the last two years, the company had forecasted Group sales at the previous years level and adjusted EBITDA (EBITDApre) between 160 million and 180 million for the stabilisation and investment year 2023.

Further details on business development and outlook can be found in the Group interim statement on the first nine months of 2023.

Key figures of the third quarter 2023
LINK: https://www.sglcarbon.com/en/newsroom/news/press-report/sgl-carbons-bu...
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...