SGL Group Posted Good First Half-Year Results – Strategic Realignment Essentially Implemented

SGL Group/DE delivered good results for the first half of 2017. Sales and profitability have improved substantially. Sales from continuing operations amounted to EUR 435,3 (prior year period: 379,4 million), up by nearly 15 % year-on-year. Market segments energy, digitization and industrial applications were the main growth drivers. Both business units Composites – Fibers & Materials (CFM) and Graphite Materials & Systems (GMS) contributed double-digit growth rates. Recurring EBIT increased significantly to EUR 22,5 million (prior year period: EUR 9,6 million). Return on capital employed (ROCE) based on recurring EBITDA improved to 9,8 % (prior year period: 8,3 %). In August 2017, SGL Group signed an agreement to sell its cathodes, furnace linings and carbon electrodes business to funds advised by Triton. The two parties agreed on an enterprise value of EUR 250 million. After deducting standard debt-like items, mainly pension provisions, as well as other customary adjustments, the transaction will result in cash proceeds of more than EUR 230 million. The closing for this sale as well as for the sale of the graphite electrode business to Showa Denko are expected this year. With these two transactions, the former business unit Performance Products (PP) has been sold at a total enterprise value of EUR 600 million and approx. EUR 130 million above its book value on 30 June 2016.

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