08-08-2013 Management Board introduces comprehensive cost savings program SGL2015 in response to the weak business development in the first half year 2013 Half-year report 2013 - Sales increased by 2% to 828 million
- EBITDA before extraordinary effects down 38% to 67 million
- Extraordinary charge of 222 million calculated in accordance with IFRS
- Significant improvement in free cash flow from minus 172 million to minus 46 million
- 2013 guidance modified (published on June 27, 2013): EBITDA 50 60% below comparable previous-year figure of 240 million due to increased competitive pressures from Asia and lack of business recovery in second half year
- Management Board introduces a comprehensive cost savings program: SGL2015
Wiesbaden, August 8, 2013.The overall business development in the first half 2013 was weaker than anticipated. Group sales increased slightly by 2% to 828.2 million (H1/2012: 809.8 million). Adjusted for the sales contribution of the Portuguese acrylic fiber producer Fisipe acquired in 2012, a slight decrease would have been recorded. Due to the weak development in all three Business Areas, Group EBITDA decreased by 38% to 67.3 million (H1/2012: 108.2 million). This corresponds to an EBITDA margin of 8.1% after 13.4% in the previous-year period. Group EBIT before extraordinary effects declined accordingly and amounted to 25.6 million (H1/2012: 69.9 million).
Robert Koehler, CEO of SGL Group: The combination of a cyclical downturn in many of our customer industries, temporary overcapacities especially in our graphite electrodes and specialties businesses as well as project delays in development and start-up phases within the Business Area Carbon Fibers & Composites required a quick response to the changed market and competitive environment. Therefore, as already indicated, we have introduced a comprehensive Group-wide cost savings program SGL2015 to take resolute action.
As required by IFRS, impairment tests for fixed assets and goodwill led to negative non-cash extraordinary effects totaling 153.2 million related to write-downs in the Business Area CFC in the second quarter 2013. Result before tax therefore stood at minus 164.3 million (H1/2012: 40.0 million) and net income at minus 243.0 million (H1/2012: 23.0 million), including extraordinary tax expenses of 68.7 million. Based on an average number of shares of 70.8 million, basic earnings per share dropped to minus 3.43 (H1/2012: 0.33).
Free cash flow significantly improved balance sheet marked by extraordinary effects As of June 30, 2013, total assets decreased by 16% to 2,150.7 million compared to the end of 2012 (December 31, 2012: 2,559.7 million) due to the extraordinary effects in the Business Area CFC, currency effects, write-downs on deferred tax assets and the repayment of the convertible bond due in May 2013. The extraordinary effects also led to a decrease in shareholders' equity to 797.0 million (December 31, 2012: 1,067.0 million) and an equity ratio of 37.1% (December 31, 2012: 41.7%). The repayment of the convertible bond in May 2013 also resulted in a significant reduction of total liquidity. Net financial debt increased to a total of 519.8 million (December 31, 2012: 459.3 million). This corresponds to a gearing of 0.65 as of June 30, 2013, which is above the mid-term target of approximately 0.5. Nevertheless, free cash flow in the reporting period improved significantly to minus 46.4 million (H1/2012: minus 171.6 million) due to substantially reduced cash consumption for working capital requirements and lower cash used in investing activities. Last years' free cash flow was also marked by the Fisipe acquisition.
Segment reporting Performance Products (PP): Impacted by unsatisfactory price developments In the first half year 2013, sales in the Business Area PP at 420.1 million remained virtually at the same level as in the same period of the previous year (H1/2012: 413.1 million) primarily due to the unsatisfactory price developments in graphite electrodes. At 74.4 million, EBITDA in the reporting period was 20% lower than in the same period of the previous year ( 93.1 million). The main reason for this development lies in rising factor costs and simultaneous pricing pressure. Accordingly, the EBITDA margin amounted to 17.7% (H1/2012: 22.5%). Savings from the SGL Excellence initiative amounted to approximately 6 million.
Graphite Materials & Systems (GMS): Cyclical downturn affects business Sales in the Business Area GMS decreased by 17% in the first half year 2013 to 210.1 million (H1/2012: 252.8 million). However, the previous-year period partially still benefited from a high order backlog from 2011. While sales in the Business Unit Process Technology reached the previous-year level, the Business Unit Graphite Specialties had to record a 20% decrease in sales. Demand from the solar, semiconductor, and LED industries have been contracting for some time, this development has continued until now. In addition, the order intake in the previously more stable industrial applications now has also weakened substantially, not least due to the overall economic developments. This cyclical downturn significantly impacted earnings, as production was decisively cut as a result of the low order backlog and to reduce inventory levels. Mainly due to the resulting lower fix cost absorption, but also caused by the intensified competition with corresponding pricing pressure, EBITDA decreased to 21.5 million (H1/2012: 49.1 million). The EBITDA margin amounted to 10.2% (H1/2012: 19.4%). Cost savings from the SGL Excellence initiative amounted to 3 million.
Carbon Fibers & Composites (CFC): Sales further increased In the first half year 2013, sales in the Business Area CFC increased by 37% to 195.8 million (H1/2012: 142.9 million); however, 16%-points
Most recent headlines
17/02/2025
TVBEurope talks to the team who brought a piece of broadcasting history back to life on BBC Wales last night
By Jenny Priestley
Published: February 14, 2025 ...
17/02/2025
Eligible studios will receive the relief directly from their local authorities, with no need to submit a claim
By Matthew Corrigan
Published: February 17, 20...
17/02/2025
As DEI initiatives come under pressure in the USA, supporters of Rise, which promotes diversity in the media and entertainment sector, discuss the continuing im...
17/02/2025
EIB Global loan will partially fund SES's continued O3b mPOWER medium earth orbit (MEO) fleet expansion enabling additional capacity worldwide. O3b mPOWER s...
15/02/2025
At Nielsen, Business Resource Groups (BRGs) play a critical role in nurturing a ...
15/02/2025
Innovation to empower creativity: Explore the latest in Lightroom
Rob Christensen February 15, 2025
0 Comments
Whether you want to remove distracting ...
15/02/2025
Wisycom, a worldwide leader in RF technology and provider of wireless solutions, announces a new distribution agreement with EQUAPHON. An Argentinian profession...
15/02/2025
DPA Microphones, the leading manufacturer of high-quality microphone solutions, is pleased to welcome Nicholas Nick Mariano and Vincent Vince Divine to the ...
15/02/2025
Tuxera, a leading provider of quality-assured file systems and networking solutions, will showcase how Tuxera Fusion SMB enables unprecedented performance for m...
15/02/2025
Bitmovin's latest Video Developer Report indicates an increasing role of AI, the slow adoption of next-generation codecs, and continuing challenges when it ...
15/02/2025
When Michelin Enterprises set out to promote its prestigious Hotel Guide in the new Sleepless in the Kitchen , campaign, veteran German/Slovenian gaffer Robert...
15/02/2025
Formula E, the world's first all-electric racing series, revolutionizing motorsport with cutting-edge technology and a commitment to sustainability has sele...
15/02/2025
Agile Content, a global leader in TV and video technology solutions, announces its rebranding to AgileTV.
The transition to AgileTV stems from a commitment to ...
15/02/2025
Hiltron Communications will promote the latest additions to its range of satellite communication products, systems and supporting services at GovSatCom 2025. Th...
15/02/2025
Following the success of the original Airglow Booklight, DoPchoice debuts a new addition to their inflatable line the Float. This lightweight, inflatable, round...
15/02/2025
LAS VEGAS Marshall Electronics has announced that it will debut its newest camera controller, the RCP Plus, at the 2025 NAB Show at Booth N2649 between April 5 ...
15/02/2025
ATLANTA Gray Media has named Blake Sebo as the next general manager of KTUU and KYES, Gray's NBC and CBS affiliates in Anchorage, Alaska....
15/02/2025
KOKKEDAL, Denmark DPA Microphones will feature its new CORE+ technology for distortion-free microphone sound at the 2025 NAB Show, April 5-9, in Las Vegas....
15/02/2025
SWANSEA, U.K. QuickLink will launch StudioPro-NDI and StudioPro-3, two new models of its QuickLine StudioPro video production platform, at the 2025 NAB Show, Ap...
15/02/2025
Live From 2025 NBA All-Star Game Weekend: After 25 Years, Turner Sports All-In F...
15/02/2025
NASCAR Driver Cam on Max Embraces Cloud-Based Workflow for 2025 Season Chris Brown of WBD Sports says Mobii will play key part in delivering signals from the tr...
14/02/2025
Last month, we officially launched the Spotify Partner Program, a powerful new m...
14/02/2025
From an island off the coast of Lutruwita to the global stage in France SBS & ...
14/02/2025
The future of electro-optical/infrared (EO/IR) land systems is evolving so that ...
14/02/2025
Here are 5 reasons why you should attend ISE 2025
Discover more about Calrec: Learn more about Calrec's legacy of innovation in broadcast audio solutions ...
14/02/2025
World Radio Day: On the same wavelength
By Graham Murray, International Sales Manager at Calrec
To mark World Radio Day, Calrec's International Sales Ma...
14/02/2025
DALLAS and TYSONS, Va. Tegna has concluded a broadcast rights agreement that makes Tegna's KFAA in Dallas the exclusive local television partner of the Dall...
14/02/2025
Amazon's Prime Video has released a new app for Apple TV that the streamer said delivers an improved streaming experiences with faster scrolling, improved s...
14/02/2025
CLEVELAND Telos Alliance announced a software update for its Axia Quasar XR and SR line of audio-over-IP (AoIP) mixing consoles and will show the offering at th...
14/02/2025
Puget Systems Returns to HPA Tech Retreat 2025 with New Analysis Tools for Puge...
14/02/2025
Glass Animals: Tour of Earth Uses Blackmagic Live Production Workflow
Brie Clayton February 14, 2025
0 Comments
80six deploys Blackmagic URSA Broadcas...
14/02/2025
A dispute between Paramount and Youtube TV that would have pulled CBS stations and Paramount's cable channels from the streaming service has been temporaril...
14/02/2025
Colourist Deidre (Dee) McClelland details how she helped shape the distinct look and feel of whimsical Oscar-nominated stop-motion film, Memoir of a Snail
By C...
14/02/2025
BitFire said it intends to introduce forward-looking services that simplify the launch of live production workflows, and enhance real-time collaboration
By Jen...
14/02/2025
The claim by the liquidators is the latest twist in the ongoing saga of the companys collapse at the end of 2021
By Matthew Corrigan
Published: February 14, ...
14/02/2025
A carriage dispute between YouTube TV and Paramount could come to a head today (Feb. 13), with the virtual pay TV provider threatening to pull all of the progra...
14/02/2025
ENGLEWOOD CLIFFS, N.J. LG Electronics USA has opened a new in-house, state-of-the-art virtual production studio at its 360,000-square-foot North American headqu...
14/02/2025
NEW YORK In a bid to help local broadcasters find new ways of monetizing their content, the Coalition for Innovative Media Measurement (CIMM) and TVB have relea...
14/02/2025
WASHINGTON Three Democratic U.S. Senators have sent a stern letter blasting FCC Chair Brendan Carr for the weaponization of the agency for attacking broadcast...
14/02/2025
Years after launching the streaming service Apple TV+ in November of 2019, Apple has finally released a version of its steaming app for Android devices....
14/02/2025
FOOTHILL RANCH, Calif. Red Digital Cinema will make its V-RAPTOR [X] and KOMODO-X camera systems available with Nikon's premier Z Mount, providing filmmaker...
14/02/2025
DAYTONA, Fla. The Fox Sports production of this year's Daytona 500 will see the addition of a few new tech elements and the continued unfolding of the broad...
14/02/2025
Watch Bryson Battles Blind Audition on The Voice Get a Four-Chair Turn Michael Bubl said the Boston Conservatory at Berklee musical theater senior might have...
14/02/2025
2025 Daytona 500: FOX Sports Looks To Ride Super Bowl LIX Momentum Into NASCAR S...
14/02/2025
14 Feb 2025
VEON's Kyivstar and the Come Back Alive Foundation Raise USD 2....
14/02/2025
Max Renews THE PITT, Starring Noah Wyle, For A Second Season
Max
Warner Bros. Television Group
The Pitt
New Episodes Of The Medical Drama From John...
14/02/2025
This year, Technicolor proudly celebrates 110 years of shaping the magic of cinema pioneering color, visual effects, and innovation that bring unforgettable l...
14/02/2025
NBA All-Star: More Games, More Teams, More Music, More Sound From the Court Turner Sports' team will deploy familiar tech to capture all the audio By Dan D...
14/02/2025
LIV Golf Continues To Innovate With Drones, Data-Driven Graphics, and All-Access...
08-08-2013 Management Board introduces comprehensive cost savings program SGL2015 in response to the weak business development in the first half year 2013 Half-year report 2013 - Sales increased by 2% to 828 million
