Sony Pixel Power calrec Sony

SGL Carbon: Focus on global growth trends pays off

08/05/2024

SGL Carbon had a solid start to the first quarter of 2024. Despite the slight decline in sales of 3.9% to 272.6 million (Q1 2023: 283.7 million), adjusted EBITDA improved by 5.0% to 42.1 million (Q1 2023: 40.1 million). Weak demand in the Carbon Fibers business unit in particular have a negative impact on the Groups sales and earnings performance. By contrast, slightly higher sales and, especially, the increase in adjusted EBITDA in the Graphite Solutions and Process Technology business units had a positive effect on the Groups performance.

Our Graphite Solutions and Process Technology business units performed well in the first three months 2024. Composite Solutions has maintained considerable profitability even after the expiry of a contract with an automotive customer. We are only concerned about the Carbon Fibers division. In addition to weak demand from the wind industry, the increasing price pressure for textile and acrylic fibers is weighing on the business unit, explains CEO Dr. Torsten Derr.

Development of the business unitsSGL Carbons largest business unit, Graphite Solutions, generated sales of 141.3 million in Q1 2024 and was thus at the previous years level (Q1 2023: 140.9 million). The continued positive sales development in the semiconductor and LED market segment was almost completely offset by the cyclical decline in demand in the other market segments. Sales with customers from the semiconductor industry increased by 9.8 million or 15.6% to 72.4 million in a three-month comparison. This includes sales with silicon carbide semiconductor customers, whose sales growth amounted to around 35% and now accounts for around two thirds of total semiconductor and LED sales. Based on the changed product mix, the adjusted EBITDA of Graphite Solutions improved by 18.4% to 36.6 million (Q1 2023: 30.9 million). The adjusted EBITDA margin also increased accordingly from 21.9% to 25.9% quarter-on-quarter.

The Process Technology business unit confirmed the positive development of the previous year with an increase in sales of 3.4% to 33.0 million (Q1 2023: 31.9 million). Major projects for international customers and a good order situation in the service business in particular led to this pleasing increase. Based on higher capacity utilization and an attractive product mix, Process Technologys adjusted EBITDA improved by 40.8% to 6.9 million (Q1 2023: 4.9 million). The adjusted EBITDA margin developed correspondingly positively from 15.4% in the same quarter of the previous year to 20.9% in Q1 2024.

Sales in the Carbon Fibers business unit amounted to 57.6 million in Q1 2024, which was below the prior-year quarters figure of 63.7 million. The decline is due in particular to the continued weak demand from the wind industry and the associated capacity adjustment in the carbon fiber business. In addition, there was increasing price pressure in the textile and acrylic fiber market segments in the first three months of 2024 due to a global capacity overhang for these products. Accordingly, the adjusted EBITDA of Carbon Fibers fell by 9.5 million quarter-on-quarter to minus 5.2 million (Q1 2023: 4.3 million). It should be noted that the adjusted EBITDA includes an earnings contribution of around 4.4 million from companies accounted for At-Equity.

Revenue in the Composite Solutions business unit declined slightly to 37.1 million in Q1 2024 (Q1 2023: 39.8 million or -6.8%). The decline is due to the expiry of a project-related supply contract with an automotive customer. The division develops and produces customized vehicle components made from various composite materials for automotive customers in Europe and North America. As a result of the slightly lower volumes, the adjusted EBITDA of Composite Solutions decreased by 0.4 million or 6.8% year-on-year to 5.5 million (Q1 2023: 5.9 million), but maintained its adjusted EBITDA margin of 14.8%, unchanged from the same quarter of the previous year.

Debt, equity and capitel expenditureAt 117.2 million as at March 31, 2024, net financial debt remained at the same level as at the end of previous year (December 31, 2023: 115.8 million). The leverage factor remained unchanged at 0.7. Due to the positive Group result, the equity ratio increased slightly compared to the end of the 2023 financial year to 42.0% (31.12.2023: 41.1%).

The investment volume in the first quarter of 2024 amounted to 23.9 million and was therefore significantly higher than the depreciation and amortization of 13.3 million.

Around two thirds of our investment volume in the first three months of 2024 was invested in expanding our production capacities for graphite components for the semiconductor industry. The local expansion of our machinery is therefore progressing steadily. In addition, we have invested around 6 million in the construction of a new production hall for our joint venture BSCCB to create additional production capacity for this highly profitable business, explains Thomas Dippold, CFO of SGL Carbon.

OutlookIn line with the course of business in the first three months of 2024, we confirm our sales and earnings outlook for the 2024 financial year. Consolidated sales for the 2024 financial year are expected to be at the previous years level and adjusted EBITDA between 160 million and 170 million.

Further details on business development in Q1 2024 can be found in the Quarterly Statement.

Key figures of the first quarter 2024
LINK: https://www.sglcarbon.com/en/newsroom/news/press-report/sgl-carbon-foc...
See more stories from sgl

More from SGL

13/12/2024

Disclosure of material transactions with related parties in accordance with Section 111c of the German Stock Corporation Act (AktG)

SGL CARBON SE Wiesbaden - ISIN DE00723501 - Disclosure of material transactio...

19/11/2024

Adhoc notification: Andreas Klein appointed as the new CEO of SGL Carbon SE

(11:18 AM) Wiesbaden, November 19, 2024. The Supervisory Board of SGL Carbon SE decided in its meeting today to appoint Andreas Klein as Chief Executive Officer...

19/11/2024

SGL Carbon: Andreas Klein appointed as new CEO of SGL Carbon SE. Expansion of the board to three members.

The Supervisory Board of SGL Carbon SE decided in its meeting today to appoint A...

07/11/2024

SGL Carbon: Improved profitability despite slightly lower sales

Weak demand in some of our customer markets is increasingly hindering SGL Carbons sales growth. After nine months in 2024, SGL Carbon generated sales of 781.9 ...

08/10/2024

SGL Carbon: CEO Dr. Torsten Derr joins SCHOTT AG at the end of his contract with SGL Carbon

In March 2024, SGL Carbon informed the public that CEO, Dr. Torsten Derr, will n...

12/09/2024

Start of training: SGL Carbon welcomes 34 new trainees in Germany.

SGL Carbon is committed to training its own junior staff. At the Meitingen, Bonn and Willich sites, a total of 34 apprentices have started their careers in rece...

08/08/2024

SGL Carbon shows stability in a difficult market environment

Q2 2024 confirms SGL Carbons solid business development in an increasingly volatile market environment. After 272.6 million in Q1 and 265.4 million in Q2, SGL...

26/07/2024

Congratulations to newly trained specialists at SGL Carbon

Nine talented young professionals completed their vocational training at SGL Carbon in Meitingen from the beginning of June to mid-July, achieving an overall gr...

26/06/2024

Clarification on the voting rights notification of Dr. Susanne Klatten dated June 25, 2024

In the voting rights notification published today, Dr. Susanne Klatten informed ...

11/06/2024

90 years of Dr. Schnabel GmbH - SGL's Limburg site has every reason to celebrate

On June 8, we celebrated the 90th anniversary of Dr. Schnabel GmbH at our Limbur...

27/05/2024

Experience inspiration. Master challenges. With SIGRAFLEX and SIGRAFINE at ACHEMA 2024

It will soon be that time again: ACHEMA, the worlds most important trade show fo...

15/05/2024

Celebrating 80 years of success in Morganton

On May 15th, we celebrate the 80th anniversary of the SGL Carbon site in Morganton, North Carolina. The entire SGL Morganton family came together to celebrate t...

08/05/2024

SGL Carbon: Focus on global growth trends pays off

SGL Carbon had a solid start to the first quarter of 2024. Despite the slight decline in sales of 3.9% to 272.6 million (Q1 2023: 283.7 million), adjusted EBI...

26/04/2024

Career insights instead of everyday school life

Once again this year, SGL Carbon opened its doors to interested children and young people. On the occasion of the German Girls and Boys Day, which took place on...

22/03/2024

SGL Carbon achieves annual targets for 2023 and invests more in growth markets

In fiscal year 2023, SGL Carbon achieved the sales and earnings targets set at the beginning of the year despite the drop in demand from the important wind mark...

21/03/2024

Adhoc notification: SGL Carbon: CEO Dr. Torsten Derr will not extend his contract

(10:15 AM) Wiesbaden, March 21, 2024. The CEO of SGL Carbon SE, Dr. Torsten Derr...

21/03/2024

SGL Carbon CEO Dr. Torsten Derr will not extend his contract

The CEO of SGL Carbon SE, Dr. Torsten Derr, informed the Chairman of the Supervisory Board today that he will not extend his contract, which expires on May 31, ...

18/03/2024

Young professionals successfully complete vocational training at SGL's Meitingen site

Seven young professionals completed their vocational training at SGL Carbon in M...

06/03/2024

Another fundraising campaign by Meitingen apprentices in aid of the Dominikus-Ringeisen-Werk

The sale of the so-called angel curls once again proved to be a big seller at th...

28/02/2024

SGL Carbon appoints Dr. Denis Hinz as new Head of the Business Unit Carbon Fibers

As of March 1, 2024, Dr. Denis Hinz will become new Head of SGL Carbons Carbon F...

23/02/2024

Adhoc notification: SGL Carbon evaluates strategic options for the Business Unit Carbon Fibers

(06:11 PM) Wiesbaden, February 23, 2024. The Board of Management of SGL Carbon S...

23/02/2024

SGL Carbon evaluates strategic options for the Business Unit Carbon Fibers

SGL Carbon SE is currently evaluating various strategic options for the Business Unit Carbon Fibers (CF). These include a possible partial or complete divestmen...

06/02/2024

Innovation Day in Wackersdorf: SGL Carbon and partner companies present the latest developments in fiber composite technology

In cooperation with the Bavarian leading-edge cluster MAI Carbon of Composites U...

31/01/2024

SGL Carbon builds on diverse natural graphite supply chains and remains a reliable partner for its customers

The supply capability of SGL Carbon, a leading international supplier of carbon-...

18/01/2024

Technology partnership with E-Works Mobility - SGL Carbon supplies battery case made of glass fiber reinforced plastic

The Munich-based company E-Works Mobility, which specializes in the development ...

04/01/2024

The climate-friendly carbon fiber from SGL Carbon - up to 50% less CO2 emissions

SGL Carbon relies on climate-friendly manufacturing processes in the production of its own carbon fibers. By using renewable energy, the carbon footprint of SGL...

22/11/2023

Janine Kretzschmar honored as top apprentice with Gnter Schwank Prize

This years prestigious G nter Schwank Prize goes to our former apprentice Janine Kretzschmar. She completed her training at the Meitingen site as a process mech...

20/11/2023

Second place at the AVK Innovation Award 2023 in the Products and Applications category

SGL Carbon took second place in the Products and Applications category at the AV...

02/11/2023

SGL Carbon's business performance after nine months confirms the announced stabilization and investment year

Due to the better-than-expected sales and earnings development of the business u...

25/10/2023

Ceremonial laying of the foundation stone at Brembo SGL Carbon Ceramic Brakes (BSCCB) at the SGL Carbon site in Meitingen

The expansion of production capacities is a significant milestone for the Brembo...

12/09/2023

Joint venture Brembo SGL Carbon Ceramic Brakes (BSCCB) to expand production capacity in Germany and Italy

SGL Carbon and Brembo agreed to expand production capacities for the joint ventu...

07/09/2023

SGL Carbon trains its own junior staff: 32 new apprentices start at Meitingen, Bonn and Willich sites

SGL Carbon continues to focus on training its own junior staff and welcomes 32 n...

05/09/2023

Safety Day 2023 at SGL Carbon: A day dedicated to safety

As the health of employees is a top priority at SGL Carbon, the second global Safety Day was held at all sites at the end of August. To raise awareness of safet...

10/08/2023

Successful completion of training at SGL's Meitingen site

With an overall grade point average of 2.0, ten apprentices completed their vocational training at SGL Carbon in Meitingen this summer. The young skilled worker...

03/08/2023

SGL Carbon with solid business performance at Group level. Confirmation of the full-year guidance for 2023.

Despite the increasingly difficult economic environment, SGL Carbon was able to ...

27/07/2023

Two new logistics halls at the SGL sites in Innkreis, Austria

On July 21, 2023, a 500 m logistics hall was inaugurated at SGL Carbons Austrian site in Ort im Innkreis, including an adjoining hall of approximately 150 m f...

24/07/2023

Adhoc notification: Balance sheet impairment in the Carbon Fibers Business Unit. SGL Carbon SE confirms full-year guidance 2023

(04:40 PM) Wiesbaden, July 24, 2023. According to preliminary figures for H1 202...

10/07/2023

Successful completion of the refinancing of SGL Carbon

Just two years ago, SGL Carbons net debt amounted to 287 million with a leverage of 3.1. Today, SGL Carbon reports that it has successfully completed its refin...

07/07/2023

Andreas Klein to become new Head of Business Unit Graphite Solutions

Effective October 1, 2023, Andreas Klein will become Head of SGLs largest Business Unit Graphite Solutions, succeeding Burkhard Straube. Mr. Klein holds a degr...

06/07/2023

Great interest in training at SGL Carbon in Meitingen

To mark the 75th anniversary of apprenticeships at the Meitingen site, the first Apprenticeship Day was held on July 4. With around 170 visitors to the SGL Carb...

21/06/2023

Adhoc notification: SGL Carbon SE to issue approx. 120 million convertible bonds due 2028

(07:38 AM) Wiesbaden, June 21 2023. The Management Board of SGL Carbon SE (the I...

21/06/2023

SGL Carbon SE - successful placement of 118.7 million convertible bonds due 2028

Wiesbaden, June 21 2023. SGL Carbon SE (the Issuer or SGL Carbon) today successfully completed the placement of unsubordinated, unsecured convertible bonds du...

09/05/2023

Annual General Meeting approves all items on the agenda

The shareholders of SGL Carbon SE approved all agenda items at the Annual General Meeting on May 9, 2023. The Annual General Meeting, which was held virtually, ...

05/05/2023

SGL Carbon with solid business development in Q1 2023

SGL Carbon generated Group sales of 283.7 million in Q1 2023 (Q1 2022: 270.9 million). This corresponds to an increase of 12.8 million or 4.7% compared to th...

04/05/2023

Girls' and Boys'Day at the SGL sites in Bonn and Meitingen

On the occasion of Girls and BoysDay in Germany on April 27, 2023, we opened our doors in Bonn and Meitingen to interested children and young people who wanted ...

03/05/2023

Alexander Miehling as new site manager of Meitingen

Effective May 01, 2023, Alexander Miehling has succeeded R diger Krieger as site manager of SGL Carbon in Meitingen, as well as taking over the management of SG...

28/04/2023

SGL Carbon consolidates site network

As part of the realignment of SGL Carbon, clear profitability criteria were defined for all four Business Units and strategic options were developed. The path o...

19/04/2023

Successful completion of training at SGL sites in Bonn and Meitingen

Our apprentices at the Bonn and Meitingen sites achieved excellent exam results. A total of 17 apprentices from this years graduating class completed their voca...