Sales in SGL’s Composites – Fibers & Materials Business Improved

Sales in the business unit Composites – Fibers & Materials (CFM) rose by 5% to 331.9 million Euros in fiscal year 2017 (2016: 317.4 million euros). The increase in sales revenue was mainly driven by the industrial applications market segment, followed by the automotive and textile fibers market segments. EBIT before non-recurring items also increased slightly to reach 22.7 million euros (2016: 20.1 million euros). This was due, in particular, to better capacity utilization in the carbon fiber plant in Muir of Ord (Scotland) on the back of stronger demand in the market segment industrial applications, operational improvements at Benteler-SGL, and better earnings in the aerospace segment. The EBIT margin was 6.8% (2016: 6.3%). Sales in the business unit CFM is expected to rise by approximately 25% as a result of the acquisitions. Adjusted for currency and structural changes, this corresponds to growth in the mid-to-high single-digit range. Sales with the automotive industry should more than double, primarily due to the full consolidation of the former joint ventures with Benteler (Benteler-SGL) and BMW (SGL ACF). However, sales from the wind energy industry should decrease by about one quarter, owing to the deconsolidation of the former joint venture with Kumpers. EBIT in this business unit is expected to improve noticeably due to the additional contribution to earnings resulting from the full consolidation of the former joint venture SGL ACF and increasing volume demand. These will be partially offset by negative currency effects and higher development costs. For identifying growth opportunities in the South African Carbon Fiber, Carbon Fiber Prepreg and Fabric Market: Trends, Forecast and Competitive Analysis, please visit http://www.lucintel.com/south-african-carbon-fiber-2018.aspx