(06:57 PM) SGL Carbon SE has completed a challenging fiscal year 2014. As already anticipated in our March 2014 press conference, Group EBIT in 2014 declined substantially compared to the prior year due to the adverse development in graphite electrode pricing and despite the improvement in most other businesses. Nevertheless, according to preliminary results, the Company has slightly surpassed market expectations with a small single digit positive EBIT (before non-recurring effects) in the full year 2014.
This slightly positive EBIT (before non-recurring effects) will be significantly burdened by impairment charges, particularly relating to HITCO Carbon Composites, which was classified as asset held for sale in June 2014 and for which we have received an updated appraisal. In addition we anticipate further SGL2015 restructuring charges beyond the forecasted mid double digit million range, especially in the reporting segment Carbon Fibers & Materials (CFM). From today’s point of view, these additional restructuring and impairment charges could reach approximately €105 million altogether. Including potential tax implications of the extraordinary charges, SGL Group expects a Group net loss of approximately €250 million in the full year 2014 (2013: net loss of €317 million).
Further details on the 2014 results and guidance for fiscal year 2015 will be provided with the publication of our annual report on March 18, 2015.
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 43 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 2013, the Company’s workforce of around 6,300 employees generated sales of €1,477 million. The Company’s head office is located in Wiesbaden.
Further information on SGL Group can be found in SGL Group’s newsroom at www.sglgroup.com/press or at www.sglgroup.com.
Additional Information:
ISIN: DE0007235301
Listing: Amtlicher Markt / Prime Standard / Frankfurter Wertpapierbörse (Official Market / Prime Standard / Frankfurt Stock Exchange)
Company's seat: Wiesbaden
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.