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The surplus was 6.1 million euros, as the company listed in the SDAX small cap index announced on Wednesday in Wiesbaden. A year earlier, SGL Carbon had posted a loss of 4.3 million euros. Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) rose by around 14 percent to 33 million euros, thanks in part to the austerity measures. The company confirmed its annual targets.
“Our results in the first quarter show that we are delivering – despite the ongoing headwinds in some of our markets,” said CEO Torsten Derr. The global restructuring and transformation program plays an important role in this, and the company is making very good progress. But operationally there are also some areas that would see increasing demand again and that would now come out of the crisis stronger than before.
In order to make the carbon fiber specialist more profitable again, the management plans to cut 500 jobs, among other things. At the end of March, SGL Carbon had 4746 employees – around two percent less than at the end of 2020. In addition, the plan adopted in autumn should result in extensive savings in material costs. Overall, earnings improvements of over 100 million euros per year are targeted by 2023.
In the first quarter, revenues shrank by 2.1 percent to 241.5 million euros. While SGL Carbon has benefited from an upturn in the economy in the area of lightweight automotive construction and the semiconductor industry, the late-cycle graphite business for industrial applications and the demand for solutions for the chemical industry continue to suffer from a pandemic-related weakness. The incoming orders in the last few months, however, indicate a noticeable recovery in the chemical industry.
In the current year, revenues should continue to increase slightly to 920 to 970 million euros. The management board expects earnings before interest, taxes, depreciation and amortization (adjusted Ebitda) adjusted for restructuring costs between 100 and 120 million euros, after 92.8 million euros in 2020. However, the group’s annual deficit should improve most significantly: from a three-digit million loss it should go up to a margin of minus 20 million euros to break even.
The car manufacturers BMW and VW as well as BMW are major shareholders of SGL Carbon Susanne Klatten involved through its holding company Skion.
The SGL share is temporarily 0.64 percent in the red at 6.27 euros in XETRA trading.
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