Sony Pixel Power calrec Sony

SGL Carbon with solid development in the first quarter - Outlook for 2021 fully confirmed

12/05/2021

SGL Carbons consolidated sales amounted to 241.5 million in the first quarter (Q1/2020 246.8 million), representing a slight decline of 2%. Currency adjusted, sales were on a par with the prior-year level. SGL Carbons sales performed differently across the customer industries in the first quarter. In the Automotive lightweight construction sector and in the Semiconductor industry, the company benefited from a recovery in economic activity. In contrast, especially the development in the late-cyclical graphite business for Industrial Applications as well as SGL Carbon's solutions business for the Chemical Industry continued to suffer from pandemic-related weaknesses. However, the order intake in the Chemicals segment in recent months is showing signs of a noticeable recovery.

On the earnings side, the company was able to further improve its key figures in the first quarter. EBITDA pre rose by 14% to 33.0 million in the reporting period (Q1/2020 29.0 million). EBIT also increased significantly to 17.0 million compared to 6.4 million in the first quarter of 2020. In addition, the company now also achieved a positive net result of 6.1 million again compared to minus 4.3 million in the prior-year period.

The consistent further implementation of the restructuring and transformation program made a contribution to the positive earnings development. It is proceeding according to plan in all areas. With a total of over 700 measures in the areas of purchasing, personnel, operations and service functions, we are making steady progress across all sites. As part of the restructuring, headcount will be reduced as well. More than 60% of the planned personnel measures were already implemented at the end of the quarter.

In addition, SGL Carbon continued to clearly focus on improving liquidity and reducing debt in the first quarter. As a result, liquidity of 168.6 million as of March 31, 2021 developed positively compared to the end of the year ( 141.8 million). Free cash flow from continuing operations was positive at 24.1 million. SGL Carbons net financial debt decreased by 5% to 271.5 million as of March 31, 2021 (year-end 2020 286.5 million).

"Our first quarter results show that we are delivering despite the continued headwinds in some of our markets. One key element of this progress is our global restructuring and transformation program, in which we are making very good progress. Also operationally, there are already some areas at SGL Carbon that are seeing increasing demand again and are now coming strengthened out of the crisis. In addition, we are now pursuing a clear margin before volume strategy with which we are focusing on profitability. We fully confirm our guidance for the full year 2021," explains Dr. Torsten Derr, CEO of SGL Carbon.

Profitability improvedThe financial result improved from minus 9.4 million in Q1/2020 to minus 6.4 million in the reporting period. In particular, lower interest expenses for pensions and lower effects for the compounding of liabilities, as well as foreign currency valuations of intercompany loans led to this positive development.

Due to the increase in EBIT and the improved financial result, earnings before income taxes increased from minus 3.0 million in the prior-year period to 10.6 million in the reporting period.

Segment ReportingSince January 1, 2021, SGL Carbon has been managing its operating business in four business units, each having a homogeneous business model and clearly defined responsibility for earnings. The former reporting segment Composites - Fibers & Materials (CFM) has been broken down into the units Carbon Fibers (CF) and Composite Solutions (CS). The former reporting segment Graphite Materials & Systems (GMS) has been split into Graphite Solutions (GS) and Process Technology (PT). The reporting segments as presented below directly derive from the new business units.

Reporting segment Graphite Solutions (GS): Dynamic demand from the semiconductor sector Sales development in the reporting segment Graphite Solutions (GS) in the first quarter of 2021 was slightly below the previous years level by around 3% (currency adjusted no change) at 108.3 million, but slightly above our expectations.

The Battery & Other Energy market segment showed stable development compared with the previous year. In addition, an expected positive sales and earnings effect of around 9 million is included in this market segment in the first quarter of 2021 from the early termination of a contract. The contract termination agreed in March will lead to a corresponding compensation payment, which will be received in the second quarter. The LED & Semiconductor market segment was able to increase sales significantly. In contrast, demand from the Industrial Applications market segment declined significantly in the first quarter of 2021.

Compared with the good prior-year quarter (Q1/2020 20.8 million), EBITDA pre increased by 10% to 22.9 million in the reporting quarter, mainly as a result of the financial compensation. This led to a temporary increase in the EBITDA margin to 21.1% (Q1/2020 18.6%). In line with the sales development, the Battery & Other Energy and LED & Semiconductor market segments recorded an increase in earnings, while earnings in the Automotive & Transportation market segment increased due to productivity improvements. All other market segments recorded a decline in earnings compared to the prior-year quarter due to lower demand.

Reporting segment Process Technology (PT): Incoming orders from the Chemical Industry point to recoverySales in the reporting segment Process Technology (PT) declined significantly in the first quarter by 16% (currency adjusted minus 18%) to 19.3 million (Q1/2020 23.0 million). The main reason for this was the decline in order intake from all three regions (Asia, Europe and North America) in the p
LINK: https://www.sglcarbon.com/en/company/press/press-information/press-rep...
See more stories from sgl

More from SGL

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...

16/08/2022

SGL Carbon celebrates the return of personal encounters and a product anniversary at ACHEMA 2022

Finally live again: From August 22 to 26, 2022, the process industry will meet a...

10/08/2022

SGL Carbon expands capacities for graphite products for use in the semiconductor industry

SGL Carbon will significantly increase capacities for the production of graphite...

04/08/2022

SGL Carbon remains on track

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

Exchange between SGL apprentices and employees of the Dominikus Ringeisen plant

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

Meitingen site of SGL Carbon celebrates 100th anniversary

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

Adhoc notification: SGL Carbon raises sales and earnings guidance for 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

fitforJOB! 2022 in Augsburg

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

After Moody's, Standard & Poor's also upgrades SGL Carbon's rating

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

Great approval at this year's Annual General Meeting of SGL Carbon

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 continues dynamic business development in Q1 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

"The team spirit in the group has grown"

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...

25/03/2022

Adhoc notification: Termination of a heritable building right to a non-operating property

(03:00 PM) SGL Carbon SE today signed an agreement on the cancellation of its ex...

24/03/2022

Congratulations to our apprentices in Meitingen and Bonn on their successful completion of training

A total of eleven apprentices from Meitingen and six apprentices from Bonn compl...

24/03/2022

Initiated transformation shows effect in sales and earnings 2021 - SGL Carbon tops sales billion again

Rising demand in almost all market segments led to a 9.5% increase in Group sale...

21/02/2022

SGL Carbon supports "DigitalSchoolStory" project at Meitingen secondary school

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

CO2 reduction of 50% by 2025

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

Anniversary year for SIGRAFLEX

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

ESG in focus

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

Excellent trainees at SGL Carbon in Bonn

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

Rdiger Krieger becomes new plant manager of our Meitingen site

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

Rdiger Krieger as new plant manager of Meitingen

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

SGL Carbon receives SPE Innovation Award for glass fiber leaf spring

On November 10, 2021, the Automotive Division of the Society of Plastics Engineers (SPE ) in Michigan hosted its 50th annual Automotive Innovation Awards Gala, ...

11/11/2021

SGL Carbon - Q3 2021 also confirms the encouraging upward trend

Following consolidated sales of 241.5 million in Q1 2021 and 255.2 million in Q2 2021, Q3 2021 confirms SGL Carbons encouraging sales performance with 246.8 ...

10/11/2021

SGL Carbon opens new apprenticeship center at its site in Nowy Scz, Poland

At the beginning of September 2021, SGL Graphite Solutions Polska sp. z o.o. in Nowy S cz held the opening ceremony for a new apprenticeship center. As part of...

28/09/2021

SGL Carbon installs photovoltaic system at its site in Ort im Innkreis, Austria

SGL Carbon now produces its own green electricity at its site in Ort im Innkreis. A photovoltaic system was installed on the roof of the plant. In cooperation w...

07/09/2021

SGL Carbon puts additional state-of-the-art soft felt line into operation

SGL Carbon is expanding and modernizing its soft felt production. The company invested a single digit million euros in the last two years into an additional car...

23/08/2021

SGL Carbon invests into modernization of its Morganton site

SGL Carbon is modernizing its production for porous and extruded graphite investing around million 10 USD at its site in Morganton, North Carolina, USA until th...

12/08/2021

SGL Carbon delivers strong first half of 2021 - transformation program and improving order situation show first successes

While the past fiscal year 2020 was still characterized by a Corona-related slum...

12/05/2021

SGL Carbon with solid development in the first quarter - Outlook for 2021 fully confirmed

SGL Carbons consolidated sales amounted to 241.5 million in the first quarter (...

10/03/2021

Adhoc notification: SGL Carbon receives 42.9 million euros funding under IPCEI for graphite anode materials (GAM) in lithium-ion batteries

(09:24 AM) SGL Carbon GmbH, a 100% subsidiary of SGL Carbon SE, today received a...