18 Nov 2013
Consistent execution of cost savings program “SGL2015” in reaction to challenging environment
Nine months report 2013
Sales decreased 4% yoy due to price pressure in graphite electrodes and cyclical downturn in graphite specialties
EBITDA before non-recurring charges down to €89.5 million
Nonrecurring charges of €179.4 million in 9M/2013 consisting of extraordinary effects (Q2/2013) and restructuring expenses (Q3/2013)
Significant improvement in free cash flow from minus €159.4 million to minus €16.1 million
Guidance confirmed for FY 2013: EBITDA 50 - 60% below comparable prior year figure of €240 million
First measures of Group-wide comprehensive cost savings program SGL2015 in the process of implementation
Wiesbaden, November 18, 2013. The overall business development of SGL Group – The Carbon Company – in the first nine months of the fiscal year 2013 developed in line with the June guidance. Resulting from the continued price pressure in graphite electrodes and the cyclical downturn in graphite specialties, Group sales declined by 4% to €1,209.7 million. Due to the adverse development in all three Business Areas, Group EBITDA decreased by 52% to €89.5 million (9M/2012: €188.6 million) and the EBITDA margin to 7.4% (9M/2012: 15.0%). Group EBIT before non-recurring charges declined to €28.0 million (9M/2012: €130.3 million). Group-wide savings from SGL2015 amounted to approximately €34 million, of which approximately €19 million were attributable to the SGL Excellence initiative.
Robert Koehler, CEO of SGL Group: “The implementation of our Group-wide cost savings program SGL2015, which was initiated in August, is proceeding as planned. Initial measures are already in the process of being implemented. By the end of 2015, we intend to generate savings of approximately €150 million, approximately €50 million of which will already be realized in 2013. Despite the fact that the business development is far below our original expectations, we have been able to improve free cash flow by more than €140 million within the last 12 months.“
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About SGL Group – The Carbon Company
SGL Group is one of the world’s leading manufacturers of carbon-based products and materials. It has a comprehensive portfolio ranging from carbon and graphite products to carbon fibers and composites. SGL Group’s core competencies are its expertise in high-temperature technology as well as its applications and engineering know-how gained over many years. These competencies enable the Company to make full use of its broad material base. SGL Group’s carbon-based materials combine several unique properties such as very good electrical and thermal conductivity, heat and corrosion resistance as well as high mechanical strength combined with low weight. Due to industrialization in the growth regions of Asia and Latin America and increased substitution of traditional with innovative materials, there is a growing demand for SGL Group’s high-performance materials and products. Products from SGL Group are used predominantly in the steel, aluminum, automotive and chemical industries as well as in the semiconductor, solar and LED sectors and in lithium-ion batteries. Carbon-based materials and products are also being used increasingly in the wind power, aerospace and defense industries.
With 45 production sites in Europe, North America and Asia as well as a service network covering more than 100 countries, SGL Group is a company with a global presence. In 2012, the Company’s workforce of around 6,700 employees generated sales of €1,709 million. The Company’s head office is located in Wiesbaden.
Further information on the SGL Group can be found online at: www.sglgroup.com
Important note:
This press release may contain forward-looking statements based on the information currently available to us and on our current projections and assumptions. By nature, forward-looking statements involve known and unknown risks and uncertainties, as a consequence of which actual developments and results can deviate significantly from these forward-looking statements. Forward-looking statements are not to be understood as guarantees. Rather, future developments and results depend on a number of factors; they entail various risks and unanticipated circumstances and are based on assumptions which may prove to be inaccurate. These risks and uncertainties include, for example, unforeseeable changes in political, economic, legal, and business conditions, particularly relating to our main customer industries, such as electric steel production, to the competitive environment, to interest rate and exchange rate fluctuations, to technological developments, and to other risks and unanticipated circumstances. Other risks that in our opinion may arise include price developments, unexpected developments connected with acquisitions and subsidiaries, and unforeseen risks associated with ongoing cost savings programs. SGL Group does not intend or assume any responsibility to revise or otherwise update these forward-looking statements.