SGL Group’s First Quarter of 2018 Better than Expected

May 14 2018

SGL Group completed the first quarter of 2018 better than expected. Due to positive one-time effects and a good operational development sales revenues and earnings rose substantially. Group sales were at 263 million euros, and therefore up by about 22 percent year-on-year. Slightly more than half of the sales growth related to structural effects and the initial adoption of IFRS 15. Key drivers of the operational sales increase were the improved performance of the market segments automotive, semiconductors and LED, chemicals as well as industrial applications. Recurring Group EBIT doubled to reach about 21 million euros. Due to one-time effects occasioned by fair value adjustments of 26.7 million euros, the consolidated net result significantly increased to 32.2 million euros. As indicated in the ad hoc notification of April 24, 2018, SGL Group now expects a consolidated net result in the lower double-digit million euro range for full year 2018.

Composites – Fibers & Materials (CFM): Sales revenues and earnings driven by structural effects

Reporting segment CFM increased its sales revenues by 22.9 percent (currency adjusted by 26 percent), to reach 115.0 (previous year: 93.6) million euros. Above all, main drivers were structural effects such as the full consolidation of the former joint ventures Benteler-SGL and SGL ACF. In contrast, the sale of the share in the former joint venture SGL Kumpers reduced sales revenues. Operationally, the sales growth was driven mainly by the market segments industrial applications, automotive and aerospace. Sales in the textile fibers and wind segments declined compared to prior year level. Recurring EBIT increased by 17.7 percent to 9.3 (previous year: 7.9) million euros. The highest earnings improvement was recorded in the market segment automotive, primarily resulting from the full consolidation of SGL Composites (previously SGL ACF). While earnings in aerospace and textile fibers segment were at a similar level as in the previous year, the segments wind and industrial applications posted slightly lower EBIT.

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