Home » Markets & News » Company News » SGL Group Announced Results for the First Nine Months

SGL Group Announced Results for the First Nine Months

Following solid growth in the third quarter 2011, year-to-date sales increased by 12 % to EUR 1119,5 million (9M/2010: EUR 1002,2 million). This performance was driven by substantial improvements in the Business Area Graphite Materials & Systems (GMS) and by graphite electrodes in the Business Area Performance Products (PP). Currency adjusted sales increased by 14 %. EBIT (before impairment effects recognized in Q2/2011) increased by 23 % to EUR 124,4 million (9M/2010: EUR 101,5 million). This corresponds to Return on Sales (ROS) of 11,1% (9M/2010: 10,1 %). The strong performance in the first nine months 2011 puts the Group on track to deliver the targeted profitable growth in 2011 with Group sales to increase more than 10 % and EBIT to reach approximately EUR 160 million. The aim is to achieve mid-term ROS target of minimum 12 % in the course of 2012. In Q2/2011, SGL Group performed impairment tests for the Business Units Carbon Fibres & Composite Materials (CF/CM) and Rotor Blades (RB), both part of the Business Area Carbon Fibres & Composites (CFC). The total positive net impairment effect was EUR 4,1 million, and increased the EBIT to EUR 128,5 million in the reporting period. Sales in the Business Area PP increased from EUR 545,2 million to EUR 601,7 million (plus 10 %) due to the continued improvement in graphite electrode volumes resulting from the global growth in electric steel production. As expected, cathode sales in the third quarter 2011 started recovering slightly, however at lower sales prices. The first half year 2011 still reflected the investment pause and destocking in the aluminum industry seen throughout 2010. EBIT amounted to EUR 100 million (9M/2010: EUR 110,5 million), primarily due to lower graphite electrode prices. SGL Excellence savings amounted to approximately EUR 7 million. Start-up costs for the commissioning of the new Malaysian production facility continued to weigh on earnings in the period under review. Accordingly, return on sales at 16,6 % (9M/2010: 20,3 %) prevailed near the level seen already in the first half 2011. Sales in the Business Area GMS increased by 22 % to EUR 351,4 million (9M/2010: EUR 287,2 million). EBIT more than doubled to EUR 68,1 million (9M/2010: EUR 25,5 million), leading to a record ROS of 19,4 % (9M/2010: 8,9 %). Sales in the Business Area CFC decreased by 3 % to EUR 161,4 million (9M/2010: EUR 166,3 million). Excluding the known difficult wind market situation affecting the rotor blade business (SGL Rotec) sales in CFC grew by 7 %. Mainly due to the adverse developments in the wind industry, EBIT in the Business Area CFC (before impairments recorded in Q2/2011) decreased to minus EUR 8,9 million (9M/2010: minus EUR 6,1 million). SGL Excellence savings amounted to EUR 4 million. Excluding SGL Rotec, the Business Area CFC generated a slightly positive EBIT. The ROS deteriorated to minus 5,5 % (9M/2010: minus 3,7 %). Due to the better than expected development in the Business Area GMS and despite the disappointing performance of the business related to the wind industry within the Business Area CFC, SGL Group confirms its guidance for sales growth of more than 10 % in the full year 2011. Furthermore, management confirms the EBIT outlook of approximately EUR 160 million for the full year 2011, resulting in a Group ROS of between 10 – 11 % (11/2011).


Related Supplier

Profiles to follow

To bee seen in

Issue to follow