Press Releases 2004


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	Press Releases

November 11, 2004

SGL Carbon determines a Cost-Cutting Program in Administration

Cost reductions totaling € 11 million over the next three years
Elimination of nearly 150 administrative jobs worldwide

Wiesbaden, November 11, 2004. SGL Carbon has launched a worldwide cost-cutting program for administrative functions with focus on IT operations, Accounting, and Personnel Administration. The Company intends to generate annual savings of approximately € 11 million beginning in 2006 by streamlining processes and eliminating nearly 150 jobs. The restructuring costs for the overall cost-cutting program amount between € 5 and € 6 million, of which € 3.5 million incur already in 2004. Over the past two years, SGL Carbon has replaced its 15 different, historically acquired IT systems with a uniform SAP platform at a cost of nearly € 20 million. The uniform company-wide IT landscape that is now in place makes short- and medium-term synergies in global administrative processes possible. This leads to sustained job cutbacks in the mentioned administrative functions. A total of 50 jobs will already be eliminated in 2004, with a further reduction of nearly 90 jobs in 2005 and the remainder following in 2006.

SGL Carbon will divest its IT subsidiary as part of the cost-cutting program. Corresponding discussions are already being carried out with potential purchasers. The Company will readjust human resource capacities, which had been built up specifically for the IT harmonization, back to normal IT requirements through the sale of the IT subsidiary. The IT employees required for this step will remain with the Company and integrated within the organization.

This additional cost-cutting program, focused exclusively on administrative functions, is contributing to further sustained cost reductions within the Company. The already announced cost reduction programs, generating savings of € 40 million, less € 10 million in costs, focus largely on the Company’s production processes and functions.

Forward-looking statements:
This press release contains forward-looking statements. These statements reflect the current belief of SGL Carbon’s management as well as assumptions made by, and information available to, the SGL Group. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual future results and developments could differ materially from those set forth in these statements due to various factors. These factors include changes in the general economic and competitive situation, particularly in SGL Carbon’s businesses and markets; changes resulting from acquisitions and the subsequent integration of companies; and changes resulting from restructuring measures. In addition, future results and developments could be affected by the performance of financial markets; fluctuations in exchange rates; changes in national and supranational law, particularly with regard to tax regulations; and other risks and uncertainties, including those detailed in SGL Carbon’s filings with the U.S. Securities and Exchange Commission. SGL Carbon assumes no obligation to update forward-looking statements.