SGL GROUP IR Press Releases


SITEMAP PRINT CONTACT DEUTSCH SEARCH

PRESS




	Press Releases

February 12, 2003

SGL Carbon: Preliminary Figures for 2002

Debt reduction and free cash flow well above expectations
Profit from operations close to break-even due to provisions for antitrust risks, restructurings and additional inventory reduction

Wiesbaden, February 12, 2003. The SGL Carbon Group has significantly exceeded its goals for 2002, as announced in March 2002 under its five-point program to increase enterprise value. According to preliminary unaudited figures, net financial liabilities were reduced by roughly €100 million to around €430 million by the end of 2002 - significantly beating the original target of a reduction of at least 5% to below €500 million. The improvement in free cash flow by more than €100 million is also significantly above the target of €60 million.

Earnings after adjustments in line with earlier guidance
The SGL Carbon Group recorded preliminary revenue for fiscal 2002 of around €1.1 billion (2001: €1.2 billion).

The Company has increased its existing provisions for the fine imposed on Graphite Specialties in December 2002 by €22 million. SGL Carbon believes that the €28 million fine imposed by the European Commission is unjustified and will file an appeal with the European Court.

In Q4/2002, the Company's focus on reducing financial debt, improving working capital and strengthening cash flow affected profit from operations in the period. The reductions in costs generated by restructuring and workforce reduction measures, which exceeded forecasts significantly, additionally required a non-cash revaluation of inventories at year-end also affecting profit from operations. Together with the aforementioned 22 Mio. € non-cash provision, SGL Carbon's profit from operations will be around break-even point in 2002. Without these special non cash effects, the Company's full year 2002 profit from operations is in line with estimates given at the nine-months reporting. SGL Carbon will present its audited figures for 2002 at the annual financial press conference in Frankfurt am Main on March 13, 2003.

A confident outlook for 2003
The restructurings and measures to boost efficiency have significantly reduced the Company's cost base, allowing it to move forward in 2003. Therefore, despite the continuing economic downturn the Company expects a strong improvement in profit from operations.

Important Notice:
This press release contains forward-looking statements as defined in the US Private Securities Litigation Reform Act of 1995. It contains forward-looking statements and information relating to sales and earnings figures, based on currently available information. Actual future results and trends could differ materially from those set forth in such statements due to various factors. Such factors include unforeseeable alterations in electric steel production, the possibility of changing economic and competitive conditions, changes in currency rates, technological developments, unanticipated developments relating to recently acquired businesses and Group companies, unforeseen difficulties relating to the investigations by the European antitrust authorities and to the now completed investigation by the Canadian and U.S. antitrust authorities and the civil actions related to these investigations and other risks and uncertainties, including those detailed in the Company's filings with the U.S. Securities and Exchange Commission. SGL Carbon does not intend to update these forward-looking statements, and does not assume any obligation to do so.