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 million, which was slightly below the prior-year level at minus 4.8% (9M 2023: 821.7 million). Adjusted for currency and structural effects, Group sales decreased by 3.6%. Adjusted EBITDA, an important key figure for the Group, remained at a comparable level of 127.6 million in the reporting period (9M 2023: 130.0 million). Despite the slight decrease in sales, the adjusted EBITDA margin improved from 15.4% in Q1 and 16.7% in Q2 to 16.9% in Q3 and amounted to 16.3% after nine months (9M 2023: 15.8%). The reasons for the improved adjusted EBITDA margin are, in particular, product mix effects in the Graphite Solutions and Process Technology business units. By contrast, the ongoing weakness in demand and the associated price pressure for carbon and textile fiber products in the Carbon Fibers business unit continued to weigh on the Groups sales and earnings development.
Even with our diversified product portfolio, we can no longer completely withdraw from the generally weak economic environment. In addition, there was a decline in demand for specialty graphite products for the semiconductor industry in the third quarter. In particular, our products for the manufacture of silicon carbide-based semiconductors are suffering from the restrained demand for electric vehicles on the customer side, explains CEO Dr. Torsten Derr. While the last 18 months were characterized by enormous demand for silicon carbide semiconductors and insufficient production capacities, the market has cooled down significantly. Due to a lack of demand from the automotive industry, our semiconductor customers have significantly reduced order volumes. We do not expect to see a significant upturn in demand for our specialty graphite products until the sales figures for electric vehicles pick up again.
Based on the adjusted EBITDA of 127.6 million and taking into account depreciation and amortization of 41.0 million (9M 2023: 43.3 million) and one-off effects as well as non-recurring items of minus 18.3 million (9M 2023: minus 47.2 million), EBIT after nine months of 2024 will be 68.3 million (9M 2023: 39.5 million). The one-off effects and non-recurring items result, among other things, from the restructuring measures at Carbon Fibers and the Battery Solutions business line as well as from expenses for a strategy project. When comparing with the previous year, it should be noted that the first nine months of 2023 were disproportionately affected by an impairment loss on the assets of Carbon Fibers ( 44.7 million).
Development of the business unitsAfter nine months in 2024, sales in the Graphite Solutions business unit stagnated at 412.5 million, the same level as in the prior-year period (9M 2023: 418.4 million). While sales in this business unit had still grown slightly by 1.3% in the first half of 2024, the slowdown in demand in the Semiconductor & LED market segment weighed on Q3 2024. The reason for the weakening demand for our graphite products is the significantly lower-than-expected decline in electric vehicles, which in particular use silicon carbide semiconductors. Our products are needed to manufacture silicon carbide-based semiconductors, meaning that the market development of these semiconductors has a direct impact on our business. Looking at the first nine months of 2024 as a whole, slight sales increases in the Semiconductor & LED and Automotive & Transport market segments were offset by the decline in demand in the other market segments.
Adjusted EBITDA at Graphite Solutions increased by 4.8% to 104.3 million (9M 2023: 99.5 million) despite the lower level of sales. This is mainly due to the change in the product mix compared with the first nine months of the previous year. Despite the decline in demand in Q3 2024, overall production capacity used for our silicon carbide semiconductor customers was higher than in the previous year. Accordingly, the adjusted EBITDA margin improved year-on-year to 25.3% (9M 2023: 23.8%).
Process Technology generated sales of 106.2 million and continued its positive business performance with an 11.0% increase in sales in a nine-month comparison. This is also reflected in the adjusted EBITDA, which increased from 17.5 million in the same period of the previous year to 25.6 million (+46.3%). Higher capacity utilization and positive product mix effects led to an improvement in the adjusted EBITDA margin from 18.3% in the first nine months of 2023 to 24.1% in the reporting period.
The Carbon Fibers business units sales for the first nine months of 2024 amounted to 157.1 million, significantly below the figure of 179.6 million for the prior-year period. The decline is due in particular to the continued weak demand from the wind industry and to the increasing competitive pressure resulting from global overcapacities for carbon and textile fibers.
Idle production capacities and the associated lack of fixed cost absorption as well as declining margins for commodity products led to a further deterioration in the adjusted EBITDA of the Carbon Fibers. The adjusted EBITDA of the Carbon Fibers business unit fell to minus 7.9 million in the first nine months of 2024 (9M 2023: 3.2 million). It should be noted that the adjusted EBITDA of the Carbon Fibers business unit includes an earnings contribution of 11.6 million from the joint venture BSCCB, which is accounted for At-Equity (9M 2023: 14.1 million). Excluding this contribution from the At-Equity accounted BSCCB, the adjusted EBITDA of Carbon Fibers would have been minus 19.6 million (9M 2023: minus 10.5 million).
SGL Carbon assumes that demand for carbon fibers will not recover in the coming months and that the realizable prices for these products
More from SGL
19/11/2024
(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
The Supervisory Board of SGL Carbon SE decided in its meeting today to appoint A...
07/11/2024
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
In March 2024, SGL Carbon informed the public that CEO, Dr. Torsten Derr, will n...
12/09/2024
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
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
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
In the voting rights notification published today, Dr. Susanne Klatten informed ...
11/06/2024
On June 8, we celebrated the 90th anniversary of Dr. Schnabel GmbH at our Limbur...
27/05/2024
It will soon be that time again: ACHEMA, the worlds most important trade show fo...
15/05/2024
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 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
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
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
(10:15 AM) Wiesbaden, March 21, 2024. The CEO of SGL Carbon SE, Dr. Torsten Derr...
21/03/2024
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
Seven young professionals completed their vocational training at SGL Carbon in M...
06/03/2024
The sale of the so-called angel curls once again proved to be a big seller at th...
28/02/2024
As of March 1, 2024, Dr. Denis Hinz will become new Head of SGL Carbons Carbon F...
23/02/2024
(06:11 PM) Wiesbaden, February 23, 2024. The Board of Management of SGL Carbon S...
23/02/2024
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
In cooperation with the Bavarian leading-edge cluster MAI Carbon of Composites U...
31/01/2024
The supply capability of SGL Carbon, a leading international supplier of carbon-...
18/01/2024
The Munich-based company E-Works Mobility, which specializes in the development ...
04/01/2024
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
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
SGL Carbon took second place in the Products and Applications category at the AV...
02/11/2023
Due to the better-than-expected sales and earnings development of the business u...
25/10/2023
The expansion of production capacities is a significant milestone for the Brembo...
12/09/2023
SGL Carbon and Brembo agreed to expand production capacities for the joint ventu...
07/09/2023
SGL Carbon continues to focus on training its own junior staff and welcomes 32 n...
05/09/2023
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
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
Despite the increasingly difficult economic environment, SGL Carbon was able to ...
27/07/2023
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
(04:40 PM) Wiesbaden, July 24, 2023. According to preliminary figures for H1 202...
10/07/2023
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
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
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
(07:38 AM) Wiesbaden, June 21 2023. The Management Board of SGL Carbon SE (the I...
21/06/2023
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
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 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
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
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
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
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...
29/03/2023
SGL Carbon will present a new 50k carbon fiber at JEC World 2023. The new SIGRAF...
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 million, which was slightly below the prior-year level at minus 4.8% (9M 2023: 821.7 million). Adjusted for currency and structural effects, Group sales decreased by 3.6%. Adjusted EBITDA, an important key figure for the Group, remained at a comparable level of 127.6 million in the reporting period (9M 2023: 130.0 million). Despite the slight decrease in sales, the adjusted EBITDA margin improved from 15.4% in Q1 and 16.7% in Q2 to 16.9% in Q3 and amounted to 16.3% after nine months (9M 2023: 15.8%). The reasons for the improved adjusted EBITDA margin are, in particular, product mix effects in the Graphite Solutions and Process Technology business units. By contrast, the ongoing weakness in demand and the associated price pressure for carbon and textile fiber products in the Carbon Fibers business unit continued to weigh on the Groups sales and earnings development.
