SGL Carbon with solid development in the first quarter - Outlook for 2021 fully confirmed
12/05/2021
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
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...
15/09/2022
Results Notice regarding the Repurchase Invitation by SGL CARBON SE (EUR 159,300,000 3.0 per cent. convertible notes due 2023 (ISIN DE000A2G8VX7))
Results Notice regarding the Repurchase Invitation by SGL CARBON SE (the Comp...