Structural Effects Propel Sales Revenues and Earnings for SGL Carbon’s Composites – Fibers & Materials

August 13 2018

Following the good first quarter 2018, SGL Carbon has continued its dynamic development during the second quarter. Augmented by high positive one-time effects, sales revenues and earnings rose substantially above prior year level. Nearly half of the sales growth of approximately 22 percent was driven by the strong organic sales increase in the market segments mobility, digitization, chemicals and industrial applications. Consequently, recurring Group EBIT nearly doubled to reach 44 million euros (including IFRS effects of about 11 million euros). Due to the increased operating profit, a significantly improved net financing result and fair value adjustments of 28.1 million euros in the first quarter, the consolidated net result significantly increased to 47.3 million euros. Due to the good development in the first half-year, SGL Carbon slightly increases its guidance for sales revenues and recurring EBIT. Additionally, the guidance for the net result from continuing operations is raised. SGL Carbon now anticipates a low to middle double-digit million euro range.

Composites – Fibers & Materials (CFM): Structural effects drive sales revenues and earnings

The business unit CFM increased its sales revenues by 27 percent (currency adjusted by 30 percent), to reach 223.7 (previous year: 176.2) million euros. Above all, main drivers were structural effects resulting from the full consolidation of the former at-equity accounted joint ventures Benteler-SGL and the former partially consolidated joint venture SGL ACF. This more than offset the sale of the former fully consolidated joint venture SGL Kumpers. Operationally, sales growth was driven mainly by the market segments aerospace, automotive and industrial applications. Sales in the textile fibers segment remained on the prior year level, while sales in the wind segment declined. Recurring EBIT increased by 40 percent to 17.3 (previous year: 12.4) million euros. The highest earnings growth was recorded in the market segment automotive, primarily resulting from the full consolidation of SGL Composites (previously SGL ACF and Benteler-SGL). While earnings in the aerospace and textile fibers segments were at a similar level as in the previous year, the segments wind and industrial applications recorded declines. The return on capital employed (ROCE) based on recurring EBIT in reporting segment CFM amounted to 5.3 percent (previous year: 5.2 percent).

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