(06:28 PM) In accordance with international accounting standards (IAS 36), SGL Carbon SE is obliged to perform both regular and event-driven impairment tests. In preparation for the 2015 financial statements, SGL Carbon SE has identified a need to recognize impairment losses on fixed and other intangible assets in the Group consolidated statements of approximately €75 to €85 million in the reporting segment Performance Products. The impairment losses relate exclusively to the graphite electrode business.
The reason for these non-cash impairment charges, which will be included in the Group consolidated financial statements as of December 31, 2015, is the reduced expectation for graphite electrode pricing in the planning period compared to the prior year.
In combination with the impairment charges as described above, the already known restructuring expenses ranging between €80 and €85 million (mainly due to the announced production facility shutdown in Frankfurt-Griesheim, Germany), as well as the losses of the now divested Aerostructures activities of HITCO in the range of €85 to €95 million, SGL Carbon SE’s net consolidated loss 2015 should range between €275 and €295 million (2014: net consolidated loss of €247 million).
The earnings guidance for the development of the 2015 Group EBIT before non-recurring charges (substantial increase compared to 2014) continues to be valid. This will range between €30 and €35 million (2014: €3 million).
SGL Carbon SE will publish its annual report 2015 on March 23, 2016.
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 42 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 2014, the Company’s workforce of around 6,300 employees generated sales of €1,336 million. The Company’s head office is located in Wiesbaden.
Listing: Amtlicher Markt / Prime Standard / Frankfurter Wertpapierbörse
(Official Market / Prime Standard / Frankfurt Stock Exchange)
Company's seat: Wiesbaden
This 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.