EQS-News

SGL Carbon: Focus on global growth trends pays off

EQS-News: SGL CARBON SE / Key word(s): Quarterly / Interim Statement/Quarter Results SGL Carbon: Focus on global growth trends pays off 08.05.2024 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement.

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SGL Carbon: Focus on global growth trends pays off
 

• Continued growth in the semiconductor business 
• Weak demand for carbon fibers further impacts Group sales and profitability
• Group sales down slightly at €272.6 million (-3.9%), adjusted EBITDA up 5.0% to €42.1 million
• Adjusted EBITDA margin at 15.4% after 14.1% in the same quarter of the previous year
• Outlook for 2024 confirmed

Wiesbaden, May 8, 2024. SGL Carbon had a solid start to the first quarter of 2024. Despite the slight decline in sales of 3.9% to €272.6 million (Q1 2023: €283.7 million), adjusted EBITDA improved by 5.0% to € 42.1 million (Q1 2023: € 40.1 million). Weak demand in the Carbon Fibers business unit in particular have a negative impact on the Group's sales and earnings performance. By contrast, slightly higher sales and, especially, the increase in adjusted EBITDA in the Graphite Solutions and Process Technology business units had a positive effect on the Group's performance.

"Our Graphite Solutions and Process Technology business units performed well in the first three months 2024. Composite Solutions has maintained considerable profitability even after the expiry of a contract with an automotive customer. We are only concerned about the Carbon Fibers division. In addition to weak demand from the wind industry, the increasing price pressure for textile and acrylic fibers is weighing on the business unit," explains CEO Dr. Torsten Derr.

Development of the business units
SGL Carbon’s largest business unit, Graphite Solutions, generated sales of €141.3 million in Q1 2024 and was thus at the previous year's level (Q1 2023: €140.9 million). The continued positive sales development in the semiconductor and LED market segment was almost completely offset by the cyclical decline in demand in the other market segments. Sales with customers from the semiconductor industry increased by €9.8 million or 15.6% to €72.4 million in a three-month comparison. This includes sales with silicon carbide semiconductor customers, whose sales growth amounted to around 35% and now accounts for around two thirds of total semiconductor and LED sales. Based on the changed product mix, the adjusted EBITDA of Graphite Solutions improved by 18.4% to €36.6 million (Q1 2023: € 30.9 million). The adjusted EBITDA margin also increased accordingly from 21.9% to 25.9% quarter-on-quarter.