Against the backdrop of a slowing global economy, SGL Carbon held up well in the first half of 2019. Sales revenue grew by approximately 6 percent compared to the previous year to reach 562 million euros. Adjusted for a positive one-time effect of around 4 million euros in the prior year, Group recurring EBIT reached nearly 38 million euros, approximately 2 million euros below prior year's first half. Recurring EBIT in the business unit Composites - Fibers & Materials (CFM) decreased significantly, whereas business unit Graphite Materials & Systems (GMS) substantially increased its recurring EBIT. SGL Carbon therefore confirms its guidance for the fiscal year 2019 and anticipates a mid-single-digit percentage sales increase and a group recurring EBIT on the prior year level. As previously guided, a break-even consolidated net result is expected. In this context, it should be noted that the prior fiscal year benefited from a non-cash positive non-recurring item of about 28 million euros resulting from the full consolidation of SGL ACF. In addition, for the year 2019 the company plans increased expenses in the financial result from the refinancing measures implemented lately.
Despite a cooling global economy, demand for our solutions continued to be high, especially in the digitization, energy and chemicals markets," says Dr. J rgen K hler, CEO of SGL Carbon. As expected, business unit GMS will continue to perform on the high prior year level. Following the weak performance of our CFM business unit during the first half of the year, we have initiated comprehensive measures to improve results. Overall, we confirm our guidance for the fiscal year.
In the first quarter of 2019, sales revenue of SGL Carbon increased by 6.1 percent to 561.5 (previous year: 529.3) million euros. The increase is primarily attributable to higher deliveries and price increases in the business unit GMS. Although recurring EBIT decreased by 14.5 percent to 37.8 (previous year: 44.2) million euros, the prior-year period included an income of 3.9 million euros from a land sale. Adjusted for this effect, recurring EBIT of SGL Carbon decreased by 6 percent. The decline in earnings in the business unit CFM could not be offset by the improvements in operating earnings in the business unit GMS and in Corporate. The return on capital employed (ROCE) based on recurring EBIT was 4.6 (previous year: 6.0) percent. EBIT after non-recurring items decreased to 33.5 (previous year: 71.0) million euros, mainly due to high positive non-recurring item in the previous year. In the first half of the prior year an adjustment to the fair value of the net assets of the previously proportionally consolidated joint operation with the BMW Group (SGL ACF) was required. This resulted in a positive impact on non-recurring earnings amounting to 28.4 million euros. Because of the positive non-recurring item in the prior year and a decreased net financing result in the reporting period, the result from continuing operations before income taxes decreased significantly from 57.3 million euros to 14.8 million euros in the reporting period. Consolidated net result of the period amounted to 10.1 million (previous year: 47.3) million euros.
Composites - Fibers & Materials (CFM): Temporarily unfavorable product mix, postponement of project billings and a weak first quarter in the market segment Textile Fibers characterize first half yearSales revenue in the business unit CFM at 219.4 million euros remained, as expected, close to the prior year level (currency adjusted: minus 3 percent). While the market segment Wind Energy recorded strong growth compared to the very weak prior year, the market segment Industrial Applications posted lower sales due to the weakening global economy. The market segment Aerospace also remained below the prior year level due to different timings of project billings. Sales in the market segments Automotive and Textile Fibers remained close to the prior year level. Recurring EBIT in the second quarter improved slightly compared to the weak first quarter, primarily reflecting the improvement in the market segment Textile Fibers. However, recurring EBIT in the first half 2019 reached 2.8 (previous year: 17.3) million euros and was substantially below the prior year level. Accordingly, the EBIT margin in the business unit decreased to 1.3 (previous year: 7.7) percent. The main reason for this development was lower earnings in the market segments Automotive and Aerospace, caused by a temporary unfavorable product mix respectively different timing of project billings. The market segment Wind Energy also recorded declining earnings due on one hand to a delivery pushback into the second half of this year based on external factors, and on the other hand to a temporary unfavorable product mix. The earnings decline in the market segment Textile Fibers is attributable to the unfavorable margin development in the first quarter, which already improved in the second quarter. The earnings improvement in the market segment Industrial Applications was not able to compensate for above developments. Return on capital employed (ROCE) based on recurring EBIT of the reporting unit CFM reached 0.9 (previous year: 5.3) percent.
Graphite Materials & Systems (GMS): Strong increase of sales revenue in most market segments; earnings grew more than proportionately Sales revenue in the reporting segment GMS in the first half 2019 increased by 12 percent (currency adjusted: 9 percent) to 321.0 (previous year: 288.0) million euros. The main drivers for this development were the market segments Semiconductor and LED, which increased their sales double-digit. The market segment Automotive & Transport also grew more than proportionately and increased its sales by more than 30 percent. Strong growth of 10 percent was also recorded in the market segments Ind
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SGL CARBON SE
Wiesbaden
- ISIN DE00723501 -
Disclosure of material transactio...
Against the backdrop of a slowing global economy, SGL Carbon held up well in the first half of 2019. Sales revenue grew by approximately 6 percent compared to the previous year to reach 562 million euros. Adjusted for a positive one-time effect of around 4 million euros in the prior year, Group recurring EBIT reached nearly 38 million euros, approximately 2 million euros below prior year's first half. Recurring EBIT in the business unit Composites - Fibers & Materials (CFM) decreased significantly, whereas business unit Graphite Materials & Systems (GMS) substantially increased its recurring EBIT. SGL Carbon therefore confirms its guidance for the fiscal year 2019 and anticipates a mid-single-digit percentage sales increase and a group recurring EBIT on the prior year level. As previously guided, a break-even consolidated net result is expected. In this context, it should be noted that the prior fiscal year benefited from a non-cash positive non-recurring item of about 28 million euros resulting from the full consolidation of SGL ACF. In addition, for the year 2019 the company plans increased expenses in the financial result from the refinancing measures implemented lately.
