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  • EQS Group

    As expected, SGL Carbon’s second quarter impacted by Corona pandemic – Sales and recurring EBIT significantly decreased in first half of 2020

    * Sales in the second quarter approximately 23 percent below prior-year period; Group recurring EBIT of around 2 million euros was slightly better than anticipated at the presentation of the results of the first quarter 2020 * Group sales in the first half year 2020 at almost 457 million euros and thus around 19 percent below the prior-year period; decrease in sales due to pandemic-related overall weaker business development as well as expected declining developments in the market segments Battery & other Energy (GMS) and Textile Fibers (CFM) * Group recurring EBIT down approximately 71 percent to 11 million euros * As a result of measures taken at an early stage and contrary to the normal seasonal trend, cash and cash equivalents at nearly 154 million euros as of June 30, 2020 developed very positively compared to the end of 2019 * According to the full year forecast published on July 28, 2020, SGL Carbon expects Group sales to decline by 15 to 20 percent and a slightly positive operating recurring EBIT * Torsten Derr, CEO of SGL Carbon: "My ambition is to achieve lasting success with SGL Carbon. Over the past two months, we have been conducting a comprehensive analysis of our processes, structures and markets. Based on this, we will identify the options that will enable us to sustainably increase our profitability. The Corona pandemic is forcing us to act even faster."As expected, the second quarter of SGL Carbon was impacted by the Corona pandemic, but not to the extent predicted in May when the quarterly statement for the period ended March 31, 2020 was published. Sales in the three months as per end of June decreased approximately 23 percent year-on-year, whereas Group recurring EBIT was at around 2 million euros and thus higher than anticipated. In total, SGL Carbon reached Group sales of 457 million euros in the first half year. This corresponds to a decrease of around 19 percent year-on-year. The decline is due to a pandemic-related overall weaker business development as well as expected declining developments in the market segments Battery & other Energy (GMS) and Textile Fibers (CFM) due to capacity adjustments. Group recurring EBIT was down approximately 71 percent to 11 million euros.On July 28, 2020, SGL Carbon published a forecast for the full year 2020 under certain assumptions. Accordingly, the company anticipates Group sales to decline by 15 to 20 percent compared to the prior year. The operating recurring Group EBIT is expected to develop slightly positive. In particular, a second pandemic wave and an associated further decline in demand due to a recession is not taken into account in the current forecast. As a result of measures taken at an early stage and contrary to the normal seasonal trend, cash and cash equivalents at nearly 154 million euros as of June 30, 2020 developed very positively compared to 137 million euros at the end of 2019."My ambition is to achieve lasting success with SGL Carbon. Over the past two months, we have been conducting a comprehensive analysis of our processes, structures and markets," says Dr. Torsten Derr, CEO of SGL Carbon. "Based on this we will identify the options that will enable us to sustainably increase our profitability. The Corona pandemic is forcing us to act even faster."In the first half year 2020, sales of SGL Carbon fell significantly by almost 19 percent to 456.5 (previous year: 561.5) million euros. Recurring EBIT decreased by 71 percent to 10.8 (previous year: 37.8) million euros. The return on capital employed (ROCE) based on recurring EBIT was 1.7 (previous year: 4.6) percent. After non-recurring items, EBIT in the first half year 2020 decreased to 5.7 (previous year: 33.5) million euros. Net financing result improved to minus 15.8 (previous year: minus 18.7) million euros. Due to the reduced EBIT, the result from continuing operations before income taxes decreased to minus 10.1 (previous year: 14.8) million euros. Consolidated net result of the period amounted to minus 13.8 (previous year: 10.1) million euros.Composites – Fibers & Materials (CFM): Sales revenue in the second quarter impacted by Corona pandemic; recurring EBIT decreased by one million to 1.8 million euros in the first half of 2020In the business unit CFM, the effects of the Corona pandemic were clearly visible only since the second quarter. From April to July 2020, sales declined by approximately 22 percent year-over-year and recurring EBIT turned slightly negative. Based on the half year period, sales in CFM declined by approximately 15 percent (currency adjusted: minus 16 percent) to 185.7 (previous year: 219.4) million euros. The largest percentage decline was recorded in the market segment Textile Fibers, where one acrylic fiber line was converted to precursor and two acrylic fiber lines were idled since the end of 2019 as part of earnings improvement measures. Corona-related declines were recorded in the market segments Automotive and Aerospace. In contrast, business with the wind energy industry doubled and thus developed more favorable than initially anticipated. Industrial Application remained relatively stable and close to the prior year level. Recurring EBIT in the first half year 2020 declined from 2.8 million euros in the prior year period to 1.8 million euros in the reporting period due to the Corona related slight loss in the second quarter 2020. The substantially improved results in the wind energy business were more than offset by the approximately 4 million euros lower earnings contribution from At-Equity accounted investments. The reason for the lower At-Equity earnings are temporary production stops at both sites of Brembo SGL between end of March and end of April 2020. EBIT margin in the business unit CFM declined to 1.0 (previous year: 1.3) percent. Return on capital employed (ROCE) based on recurring EBIT of the reporting unit CFM was at minus 1.5 (previous year: plus 0.9) percent. The negative ROCE results from the calculation method employing recurring EBIT for the last twelve months.Graphite Materials & Systems (GMS): Decline in sales revenue in all market segments except Semiconductors; decline in EBIT by approximately 51 percent to 24.3 million eurosThe initial impacts from the Corona pandemic were visible in the business unit GMS only since the second quarter 2020 as well. Compared to the prior year quarter, sales declined by almost 23 percent and EBIT by approximately 47 percent. In the first half year, sales of GMS declined by approximately 21 percent (no material currency impact) to 258.0 (previous year: 325.8) million euros due to lower revenues in all market segments except Semiconductors, which grew by a low double digit percentage. Compared to the record earnings level in the prior year period of 50.0 million euros, recurring EBIT decreased by approximately 51 percent to 24.3 million euros. The IRFS 15 effect alone contributed 9 million euros to the earnings decline. The EBIT margin deteriorated to 9.4 (previous year: 15.3) percent. In line with the development in sales, almost all market segments recorded an earnings decline. Earnings in the market segment Automotive & Transport remained stable despite lower sales due to productivity improvements. Return on capital employed (ROCE) based on recurring EBIT of the reporting unit GMS reached 11.2 (previous year: 17.0) percent.Corporate: Sales revenues below prior year level; stable EBITSales in the first half year 2020 in the business unit Corporate declined by 21 percent (no currency effect) due to reduced services provided to divested business units, i.e. the former business unit Performance Products. At minus 15.3 million euros, EBIT remained close to the prior year level.Free cash flow from continuing operations improved significantlyCash flow from operating activities in the first half year 2020 improved significantly by 25.4 million euros to 40.8 million euros, in particular because, in contrast to previous years, there was no significant increase in working capital. In addition, cash flow from investing activities improved from minus 24.6 million euros in the prior year period to minus 14.2 million euros in the reporting period, mainly because of lower capital expenditure in intangible assets and property, plant and equipment. Additionally, the first half of 2020 included cash inflows from a dividend payment from the joint venture with Brembo of 5.0 million (previous year: 6.0) million euros. As a result of the above effects, free cash flow from continuing operations improved significantly to 26.6 (previous year: minus 9.2) million euros.As of June 30, 2020, total assets of SGL Carbon were at 1,460.5 million euros and thus slightly below the prior year level (December 31, 2019: 1.504,8 million euros). Equity attributable to the shareholders of the parent company decreased by 4.9 percent to 398.0 million euros (December 31, 2019: 418.6 million euros). The decrease is mainly attributable to the consolidated net result of minus 13.8 million euros. Overall, the equity ratio at 27.3 percent was almost at prior year level (December 31, 2019: 27.8 percent).Guidance 2020: Group sales expected to decline by 15 to 20 percent year-on-year; slightly positive operating recurring Group EBIT anticipatedIn light of the uncertainties surrounding the further development, the duration as well as the impacts of the Covid-19 pandemic, on April 1, 2020, the Board of Management of SGL Carbon SE decided to suspend the guidance for the fiscal year 2020 as published in the Annual Report 2019.While the global economic backdrop continues to remain fragile and dominated by Covid-19, the outlook for the second half of the year is becoming more and more consistent. Therefore, under specific assumptions, which remain tentative, a Group outlook for the fiscal year 2020 was once again presented on July 28, 2020. In particular, a second pandemic wave and an associated further decline in demand due to a recession is not taken into account in the current forecast for the full year.For the business unit CFM, SGL Carbon now anticipates sales revenues to decline by approximately 10 percent. Declining sales in the market segment Textile Fibers, which is mainly the result of capacity adjustments, as well as the Covid-19 related demand decline in the automotive industry, is unlikely to be compensated by the strong growth in the wind energy business and the increase in the market segment Aerospace. The deteriorated outlook compared to the guidance given before the Corona pandemic outbreak, when SGL Carbon had anticipated stable sales revenues, is related to all market segments except Wind Energy, where sales revenues are growing stronger than initially expected. For operating recurring EBIT, SGL Carbon now anticipates close to a break-even result, which is not far from the March 2020 guidance (turnaround and slightly positive EBIT), because the Company expects to be able to limit the negative earnings effects of the pandemic-driven lower sales revenues with personnel measures such as short-time work as well as various spending reductions and postponements. Additionally, earnings improvement measures implemented in the Textile Fibers business in the second half of 2019 as well as price increases in the wind energy business implemented early 2020 will contribute to the earnings improvement compared to the prior year.In the business unit GMS, SGL Carbon now expects sales revenues to decline by approximately 20 percent due to the reduced business volume in all market segments expect Semiconductors, which is expected to remain on a similar level as in the prior year. The deterioration compared to the March 2020 outlook (high single-digit decline) mainly results from the weaker development in the economically more sensitive businesses with the chemical industry and industrial applications. The business unit also has reduced sales revenue expectations in the remaining market segments except Battery & other Energy. The operating recurring EBIT is anticipated to decline by at least 50 percent and therefore substantially more than planned in March (20 percent decline) based on the reduced sales revenue expectations and the resulting significantly lower capacity utilization.In the reporting segment Corporate, SGL Carbon continues to expect a substantial deterioration in the operating recurring EBIT, due to expected higher consulting costs in the reporting period as well as a result of the prior year benefiting from one-time gains from services provided to the buyer of the former business unit Performance Products.Based on the expected developments in the reporting segments as described above, SGL Carbon expects full year 2020 Group sales revenues to decline by 15 to 20 percent. Operating recurring Group EBIT is anticipated to record a slightly positive result.As already communicated since the beginning of this year, SGL Carbon has been working on various additional funding options independent from the capital markets. Some of these measures have been successfully completed or substantially advanced after the balance sheet date. These will increase Group recurring EBIT in a low double-digit million Euro amount in the form of one-time effects, presumably mainly in the third quarter. Consequently, Group net result from continuing operations for fiscal year 2020 is expected in a similar magnitude as before the Covid-19 pandemic outbreak (negative low double-digit million Euro amount) despite a lower operating recurring Group EBIT.To take into account the reduced operating earnings expectations and in the context of a conservative free cash flow management, capital expenditures will be further reduced in the current year to approximately 60 million euros (guidance in March 2020: 70-80 million euros) and thus below the level of depreciation. Investment focus in the business unit CFM is on the market segment Automotive (primarily to execute on the new battery casings orders).In addition, SGL Carbon has invested into the conversion of another textile acrylic fiber line to PAN-precursor to supply its carbon fiber production. In GMS, investment focus is on the market segment Battery & other Energy (fuel cell components).Thanks to the successful execution of additional non-capital market related funding options mentioned above, the March 2020 guidance of a mid double-digit million Euro increase in net debt at year-end 2020 compared to year-end 2019 can be more or less confirmed despite substantially lower operating earnings expectations. The increase in net debt can largely be attributed to the payment of the purchase price for SGL Composites USA (the carbon fiber plant of the former joint venture with BMW in Moses Lake, Washington, U.S.), in the amount of 62 million U.S. Dollar, which is due at the end of this year.Accordingly, a comfortable liquidity position is expected at year-end 2020 despite the purchase price payment planned in the fourth quarter 2020. In addition, the syndicated loan in the amount of 175 million euros continues to remain available and undrawn.Key Figures of SGL Carbon (in million euros) H1 2020H1 2019Change Sales revenue456.5561.5-18.7 % EBITDA before non-recurring items44.173.1-39.7 % Operating profit (EBIT) before non-recurring items10.837.8-71.4 % Return on sales (EBIT margin) 1)2.4 %6.7 %-4.3 %-points Return on capital employed (ROCE EBIT) 2)1.7 %4.6 %-2.9 %-points Operating profit (EBIT)5.733.5-83.0 % Consolidated net result-13.810.1>-100 % Earnings per share, basic and diluted (in €) continuing operations 3)-0.110.08>-100 % Payments to purchase intangible assets and property, plant & equipment-19.9-33.640.8 % Free cash flow26.6-9.2>100 %   June 30, 2020Dec. 31, 2019Change Total assets1,460.51,504.8-2.9 % Equity attributable to shareholders of theparent company398.0418.6-4.9 % Net financial debt 4)276.2288.5-4.3 % Debt ratio (Gearing) 5)3.032.40– Equity ratio 6)27.3 %27.8 %\- 0.5 %-points Employees5,0355,127-1.8 %  1 Ratio of EBIT before non-recurring items to sales revenue 2 EBIT before non-recurring items for the last twelve months to average capital employed – continuing operations (total of goodwill, other intangible assets, property, plant and equipment, investments accounted for At-Equity and working capital) 3 Based on an average number of 122.3 million shares (previous year: 122.3 million shares) 4 Financial liabilities (nominal amounts) less liquidity 5 Net financial debt divided by equity attributable to the shareholders of the parent company 6 Equity attributable to shareholders of the parent company divided by total assets About SGL CarbonSGL Carbon is a technology-based company and world leader in the development and production of carbon-based solutions. Its high-quality materials and products made from specialty graphite and composites are used in industrial sectors that determine the future: automotive, aerospace, solar and wind energy, semiconductor and LEDs as well as in the production of lithium-ion batteries, fuel cell and other energy storage systems. In addition, SGL Carbon develops solutions for chemical and industrial applications.In 2019, SGL Carbon SE generated sales of around 1.1 billion euros. The company has approx. 5,100 employees at 31 locations in Europe, North America, and Asia.Materials, products and solutions from SGL Carbon are embedded in the major topics of the future: sustainable mobility, new energies and cross-industry digitization. Further developments in these areas demand more intelligent, more efficient, networked and sustainable solutions. This is where the entrepreneurial vision of SGL Carbon evolves around: contributing to a smarter world.Further information on SGL Carbon can be found at www.sglcarbon.com/press.Important note:To the extent that our press release contains forward-looking statements, the latter are based on information that is available at present and on our current forecasts and assumptions. Forward-looking statements, by their very nature, entail known as well as unknown risks and uncertainties that may lead to actual developments and events differing substantially from the forward-looking assessments. Forward-looking statements must not be understood to be guarantees. Instead, future developments and events depend on a large number of factors; they comprise various risks and imponderables and are based on assumptions that may possibly turn out not to be appropriate. These include unforeseeable changes to fundamental political, economic, legal and societal conditions, particularly in the context of our main customers’ industries, the competitive situation, interest and exchange rate trends, technological developments as well as other risks and uncertainties. We perceive additional risks e.g. in pricing developments, unforeseeable events in the environment of companies acquired and Group member companies as well as in current cost savings programs from time to time. The SGL Carbon assumes no obligation and does not intend to adjust or otherwise update these forward-looking statements either.SGL Carbon SE Corporate Communications Andreas Pütz – Vice President Corporate Communications and Marketing Soehnleinstrasse 8 65201 Wiesbaden/GermanyTelephone +49 611 6029-100 Fax +49 611 6029-101 press@sglcarbon.com www.sglcarbon.comInvestor Relations Raj Junginger – Head of Investor Relations Soehnleinstrasse 8 65201 Wiesbaden/GermanyTelephone +49 611 6029-103 Fax +49 611 6029-101 investor.relations@sglcarbon.com www.sglcarbon.com    LinkedIn    Facebook    Twitter

  • EQS Group

    SGL CARBON SE: SGL Carbon SE presents an outlook for 2020 again based on the preliminary results for the second quarter 2020

    SGL CARBON SE / Key word(s): Forecast/Preliminary Results SGL CARBON SE: SGL Carbon SE presents an outlook for 2020 again based on the preliminary results for the second quarter 2020 28-Jul-2020 / 15:20 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. * * *SGL Carbon SE presents an outlook for 2020 again based on the preliminary results for the second quarter 2020 Wiesbaden, July 28, 2020. In light of the uncertainties surrounding the further development, the duration as well as the impacts of the Covid-19 pandemic, on April 1, 2020, the Board of Management of SGL Carbon SE decided to suspend the guidance for the fiscal year 2020 as published in the Annual Report 2019. Based on preliminary Group results for the second quarter 2020 the Board of Management has today assessed the outlook for the second half of the year.At the beginning of the second quarter 2020, business development particularly in the business unit Composites - Fibers & Materials (CFM) was still dominated by the pandemic protection measures in place in Europe and North America as well as a sharp initial decline in volumes. In the further course of the second quarter, own measures to adapt to the effects of the pandemic were accompanied by a beginning volume recovery. As a consequence, the preliminary results for the second quarter 2020 do not look as weak as anticipated at the presentation of the quarterly statement as of March 31, 2020 (Group sales to decline substantially double-digit compared to the prior year level, negative recurring EBIT1). In fact, while Group sales has likely declined by approx. 25% compared to the prior year level of approx. €273 million, recurring EBIT is likely to have remained at break-even level in the second quarter 2020. The liquidity position at approx. €150 million at the end of the second quarter 2020 has remained stable compared to the end of the prior quarter and thus continues to be above the level at year-end 2019 (approx. €137 million).While the global economic backdrop continues to remain fragile and dominated by Covid-19, the outlook for the second half of the year is becoming more and more consistent. Therefore under specific assumptions, which remain tentative, an outlook can once again be presented for the fiscal year 2020. In particular, a second pandemic wave and an associated further decline in demand due to a recession is not taken into account in the current forecast for the full year.Accordingly, SGL Carbon expects Group sales to decline year-over-year by 15% to 20% (Group sales 2019: €1,087 million) and a slightly positive operating recurring EBIT for the full year 2020.As already communicated since the beginning of this year, SGL Carbon has been working on various additional funding options independent from the capital markets. Some of these measures have been successfully completed or substantially advanced in the past weeks. These will increase Group recurring EBIT in a low double-digit million € amount in the form of one-time effects, presumably mainly in the third quarter. Consequently, Group net result from continuing operations for fiscal year 2020 is expected in a similar magnitude as before the Covid-19 pandemic outbreak (negative low double-digit million € amount) despite a lower operating Group recurring EBIT.To take into account the reduced operating earnings expectations and in the context of a conservative free cash flow management, capital expenditures will be further reduced in the current year to approx. €60 million (Guidance in March 2020: €70-80 million) and thus below the level of depreciation.Thanks to the successful execution of additional non-capital market related funding options mentioned above, the March 2020 guidance of a mid double-digit million € increase in net debt at year-end 2020 compared to year-end 2019 can be more or less confirmed despite substantially lower operating earnings expectations. The increase in net debt can largely be attributed to the payment of the purchase price for SGL Composites USA (the carbon fiber plant of our former joint venture with BMW in Moses Lake, Washington, U.S.), in the amount of 62 million U.S. Dollar, which is due at the end of this year.Accordingly, a comfortable liquidity position is expected at year-end 2020 despite the purchase price payment due in the fourth quarter 2020. In addition, the syndicated loan in the amount of €175 million continued to remain available and undrawn.The detailed interim report on the first half year 2020 will be published on August 13, as planned. 1The use of KPIs in this notification is aligned to the annual report 2019. There were no changes to the scope of consolidation or to valuation methods compared to the previous guidance.* * *Information and Explanation of the Issuer to this News: Important note: To the extent that our press release contains forward-looking statements, the latter are based on information that is available at present and on our current forecasts and assumptions. Forward-looking statements, by their very nature, entail known as well as unknown risks and uncertainties that may lead to actual developments and events differing substantially from the forward-looking assessments. Forward-looking statements must not be understood to be guarantees. Instead, future developments and events depend on a large number of factors; they comprise various risks and imponderables and are based on assumptions that may possibly turn out not to be appropriate. These include unforeseeable changes to fundamental political, economic, legal and societal conditions, particularly in the context of our main customers' industries, the competitive situation, interest and exchange rate trends, technological developments as well as other risks and uncertainties. We perceive additional risks e.g. in pricing developments, unforeseeable events in the environment of companies acquired and Group member companies as well as in current cost savings programs from time to time. The SGL Carbon assumes no obligation and does not intend to adjust or otherwise update these forward-looking statements either. * * *28-Jul-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de * * * Language: English Company: SGL CARBON SE Söhnleinstraße 8 65201 Wiesbaden Germany Phone: +49 (0)611 6029 - 0 Fax: +49 (0)611 6029 - 101 E-mail: investor-relations@sglcarbon.com Internet: www.sglcarbon.com ISIN: DE0007235301, DE000A2G8VX7 WKN: 723530, A2G8VX7 Indices: Prime Standard Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1103679 End of Announcement DGAP News Service

  • EQS Group

    No significant impact yet from Covid-19 pandemic in the first quarter 2020: SGL Carbon achieves results in line with initial expectations

    * Group sales revenues at 247 million euros approximately 15 percent below prior year’s level, but slightly above the guidance corridor (220 to 240 million euros) as published in March 2020 * Decline in Group sales due to changes in the lithium-ion battery supply chain in the business unit Graphite Materials & Systems (GMS) as well as restructuring-driven lower sales in Textile Fibers in the business unit Composites – Fibers & Materials (CFM) * Group recurring EBIT approximately 50 percent below prior year level at 9 million euros and at the upper end of the guidance corridor (mid to high single-digit million euros amount) * Due to timely implemented measures and in contrast to the usual seasonal pattern, liquidity of approximately 150 million euros as of March 31, 2020 developed very favorably compared to year-end 2019 (137 million euros) * Michael Majerus, Spokesman of the Board of Management of SGL Carbon: “We acted decisively and took various measures at an early stage, both to ensure the safety of our employees and to mitigate the economic impact of the pandemic.” * Guidance for the full year 2020 remains suspended due to the impacts of the Covid-19 pandemic; decline in Group sales revenue and negative Group recurring EBIT expected for the second quarter 2020In the first quarter 2020, SGL Carbon has not yet been significantly impacted by the Covid-19 pandemic and reached sales revenues slightly above the guidance corridor of 220 to 240 million euros published on March 12, 2020. In total, Group sales at 247 million euros was approximately 15 percent below the prior year level. The development is primarily attributable to changes in the lithium-ion battery supply chain in the business unit Graphite Materials & Systems (GMS) as well as to restructuring-driven lower sales in Textile Fibers in the business unit Composites – Fibers & Materials (CFM). As planned, Group recurring EBIT decreased by approximately 50 percent to 9 million euros and thus reached the upper end of the guidance corridor of a mid to high single-digit million euros amount.As the global measures taken to contain the pandemic led to disruptions in production and supply chains in April and early May 2020, a significant double-digit percentage decrease in Group sales revenue and a negative Group recurring EBIT are expected for the second quarter 2020.SGL Carbon implemented various measures to counter the economic impact of the pandemic at an early stage.For this reason, liquidity developed very favorably compared to year-end 2019 and in contrast to the usual seasonal pattern and improved from 137 million to approximately 150 million euros."In these extraordinary times, we have two clear priorities: protecting the health of our employees, their families and our business partners and the responsibility for our company," says Dr. Michael Majerus, Spokesman of the Board of Management of SGL Carbon. "We acted decisively and took various measures at an early stage, both to ensure the safety of our employees and to mitigate the economic impact of the pandemic. SGL Carbon is well positioned from a financial perspective. Our strategic drivers are intact even in this period of global economic challenges. We anticipate that the demand for our solutions, especially in the areas of sustainability and digitization, will grow once the pandemic is over.”In the first quarter of 2020, sales revenues of SGL Carbon fell significantly by 14.5 percent to 246.8 (previous year: 288.8) million euros. The development is primarily attributable to the anticipated lower revenues in the GMS market segment Battery & other Energy. Restructuring-driven lower sales in the market segment Textile Fibers as well as reduced deliveries at CFM due to Covid-19 related production interruptions in customer operations, which started in March, also contributed to the decline in sales. Recurring EBIT decreased by 51.9 percent to 9.0 (previous year: 18.7) million euros as the significant decline in earnings in the reporting segment GMS could not be offset by operating earnings improvements in the reporting segment CFM and in Corporate. In the first quarter, return on capital employed (ROCE) based on recurring EBIT was at 3.1 (previous year: 5.0) percent. EBIT after non-recurring items decreased to 6.4 (previous year: 16.3) million euros in the first quarter 2020. Because of a negative foreign currency effect, net financing result decreased significantly to minus 9.4 (previous year: minus 6.2) million euros. Result before income taxes decreased from 10.1 million to minus 3.0 million euros, mainly due to the decline in EBIT and net financing result. Consolidated net result of the period amounted to minus 4.3 million (previous year: 8.9) million euros.Composites – Fibers & Materials (CFM): Results substantially improved despite lower contribution from the At-Equity accounted investments; anticipated sales decline reflects restructuring-driven decrease in the market segment Textile FibersSales revenues in the business unit CFM developed as expected at 104.5 million euros, approximately 9 percent below prior year’s level (currency adjusted: minus 10 percent). The decline in sales was anticipated due to the restructuring-driven lower sales in the market segment Textile Fibers. Corona-related declining trends in the market segments Automotive and Aerospace were compensated by the higher than expected sales growth in Wind Energy. Sales in Industrial Applications were stable and thus also slightly better than planned. Recurring EBIT grew to reach 3.7 million euros compared to the break-even level of the prior year quarter, despite almost 3 million euros lower contribution from the At-Equity accounted investments. The EBIT-margin improved from 0.3 percent to 3.5 percent. Main drivers for this development were the earnings improvement measures implemented last year, particularly the restructuring in Textile Fibers, price increases in the market segment Wind Energy as well as the segment-wide improvement of the operational performance. Return on capital employed (ROCE) based on recurring EBIT of the reporting unit CFM reached minus 0.8 (previous year: 1.8) percent. The decline in ROCE results from the calculation method, which employs recurring EBIT for the last twelve months.Due to its exposure to the market segments Automotive and Aerospace, which are more than proportionately negatively impacted by the Corona crisis, the reporting segment CFM is significantly affected by the recent developments in these customer industries. However, these developments have not yet materially impacted the first quarter.Graphite Materials & Systems (GMS): Sales revenues decrease mainly due to changes in the lithium-ion battery supply chain; result below prior year; Semiconductor business with good first quarterSales revenues in the business unit GMS in the first quarter 2020 saw a decline of 19.1 percent to 134.6 (previous year: 166.4) million euros (currency adjusted: minus 20 percent), but were in line with expectations due to the changes in the supply chain in the lithium-ion battery business. All market segments declined compared to the prior year period with the exception of Semiconductors, which grew double-digit. Recurring EBIT declined by 55.1 percent to 11.9 (previous year: 26.5) million euros compared to the record earnings level in the prior year, which also included a positive IFRS 15 effect. This led to a lower EBIT-margin of 8.8 (previous year: 15.9) percent. In line with the development in sales, almost all market segments posted lower earnings. Based on the substantially higher sales revenues, earnings in the market segment Semiconductors improved slightly, while earnings in the market segment Automotive & Transport were stable despite lower sales due to productivity improvements. Return on capital employed (ROCE) based on recurring EBIT of the business unit GMS reached 13.2 (previous year: 17.4) percent.Corporate: Sales remain stable; result above prior yearSales revenues in the reporting segment Corporate in the first quarter 2020 were approximately on the prior year level (no currency effect). EBIT improved to minus 6.6 (previous year: minus 8.2) million euros compared to the prior year period despite slightly higher expenses in the central research and development department Central Innovation. The improvement is primarily due to a one-time income from the final invoicing of services to the divested business unit Performance Products.Free cash flow from continuing activities significantly improvedCash flow from operating activities in the first quarter 2020 improved significantly by 16.6 million euros to 20.7 (previous year: 4.1) million euros, in particular because in contrast to previous years, there was no significant increase in working capital in the first quarter. In addition, cash flow from investing activities improved from minus 7.8 million euros in the prior year period to minus 2.8 million euros in the reporting period, mainly because of lower capital expenditures in intangible assets and property, plant and equipment, and despite lower cash inflows from a dividend payment from the joint venture with Brembo of 5.0 (previous year: 6.0) million euros. Free cash flow from continuing operations improved significantly to 17.9 (previous year: minus 3.7) million euros.Total assets as of March 31, 2020 of 1,496.6 million euros remained essentially unchanged (December 31, 2019: 1,504.8 million euros). Equity attributable to the shareholders increased to reach 443.3 million euros as of end of March 2020 (December 31, 2019: 418.6 million euros). This development is mainly attributable to the positive effects from the adjustment of interest rates for pension provisions to the increased interest rate environment in Germany. Overall, the equity ratio as of March 31, 2020 increased to 29.6 percent (December 31, 2019: 27.8 percent).Reliable forecast for fiscal year 2020 not yet possible; in second quarter 2020, sales to decline in a double-digit range, and negative recurring EBIT expectedIn light of the uncertainties surrounding the further development, the duration as well as the impacts of the Covid-19 pandemic, on April 1, 2020, the Board of Management of SGL Carbon SE decided to suspend the guidance for the fiscal year 2020 as published in the Annual Report 2019.Due to the various measures to contain the Covid-19 pandemic, which have materially impacted and will likely continue to impact social and economic life, a significant decline in all major KPIs is to be expected for this fiscal year.Thanks to initial measures and in contrast to the usual seasonality, SGL Carbon was even able to increase liquidity at the end of the first quarter 2020 compared to the year-end 2019. To counteract the anticipated reduction in available liquidity in the coming months, SGL Carbon has not only employed personnel instruments such as applying for short-time work, but also initiated various limitations and postponements of expenditures in both business units as well as in Corporate. The company is also working on additional funding options independent from the capital markets. SGL Carbon is intensively working on identifying and mitigating potential risks.The first quarter 2020 remained largely within the scope of the initial forecasts, as March 2020 was not yet materially impacted by Covid-19. In contrast, the production processes of SGL Carbon have been affected significantly by customers’ and own temporary production stops, reduced production levels as well as demand reductions since the beginning of the second quarter 2020. Accordingly, the company currently expects sales revenues to decline substantially double-digit compared to the prior year level. As a consequence, a negative recurring EBIT in the second quarter 2020 is anticipated.A reliable outlook for the entire fiscal year 2020 can only be presented after the overall economic situation including the supply chains will have largely stabilized.SGL Carbon expects to resume its sustainable mobility, energy and digitization driven growth path after overcoming the pandemic. It is already visible today, that sustainability and digitization, two topics that have particular relevance for the company, will gain importance and that its business model will be strengthened by this development. Demand for the products of SGL Carbon will grow in the medium term, as the products offer significant customer benefits such as higher efficiency, lower costs, reduced consumption of resources, and improved CO2 footprint. These issues are also highlighted in the planned and implemented stimulus programs of various nations.The company’s lightweight solutions at competitive costs and its performance relevant materials and components for electric mobility and fuel cell cars enable sustainable mobility and reduce CO2 emissions in both, the automotive and the aerospace industries.SGL Carbon substantially contributes to the advancement of sustainable energy generation with its specialty graphites for the solar industry and its carbon fibers for the wind energy industry.The Corona pandemic has accelerated the digitization trend. SGL Carbon offers graphite based solutions along the entire semiconductor production route. Its growth is primarily driven by high- speed Internet, 5G technology for cellular networks, autonomous driving, Internet of Things and increased usage of LEDs. SGL Carbon is experiencing double-digit growth particularly in its silicon carbide coated specialty graphites for wideband-gap technology which is currently experiencing increased usage in high performance electronics and replacing the conventional technolgy.Key Figures of SGL Carbon (in million euros) Q1 2020Q1 2019Change Sales revenue246.8288.8-14.5% EBITDA before non-recurring items24.636.3-32.2% Operating profit (EBIT) before non-recurring items9.018.7-51.9% Return on sales (EBIT margin) 1)3.6%6.5%-2.9%-points Return on capital employed (ROCEEBIT) 2)3.1%5.0%-1.9%-points Operating profit (EBIT)6.416.3-60.7% Consolidated net result-4.38.9>-100% Earnings per share, basic and diluted (in €) 3)-0.040.07>-100% Payments to purchase intangible assets and property, plant & equipment-7.9-15.448.7% Free Cashflow from continuing operations17.9-3.7>100%        March 31, 2020Dec. 31, 2019Change Total assets1,496.61,504.8 -0.5% Equity attributable to shareholders of theparent company443.3418.65.9% Net financial debt 4)281.5288.5-2.4% Leverage ratio 5)2.602.40– Equity ratio 6)29.6%27.8%1.8%-points Employees5,0865,127-0.8%       1 Ratio of Operating profit (EBIT) before non-recurring items to sales revenues 2 Operating profit (EBIT) before non-recurring items for the last 12 months to average capital employed (total of goodwill, other intangible assets, property, plant and equipment, investments accounted for At-Equity and working capital) 3 Based on an average number of 122.3 million shares (previous year: 122.3 million shares) 4 Financial liabilities (nominal amounts) less liquidity 5 Net financial debt divided by EBITDA before non-recurring items of the last 12 months 6 Equity attributable to shareholders of the parent company divided by total assets  About SGL CarbonSGL Carbon is a technology-based company and world leader in the development and production of carbon-based solutions. Its high-quality materials and products made from specialty graphite and composites are used in industrial sectors that determine the future: automotive, aerospace, solar and wind energy, semiconductor and LEDs as well as in the production of lithium-ion batteries, fuel cell and other energy storage systems. In addition, SGL Carbon develops solutions for chemical and industrial applications. In 2019, SGL Carbon SE generated sales of around 1.1 billion euros. The company has approximately 5,100 employees at 31 locations in Europe, North America, and Asia.Materials, products and solutions from SGL Carbon are embedded in the major topics of the future: sustainable mobility, new energies and cross-industry digitization. Further developments in these areas demand more intelligent, more efficient, networked and sustainable solutions. This is where the entrepreneurial vision of SGL Carbon evolves around: contributing to a smarter world.Further information on SGL Carbon can be found at www.sglcarbon.com/press.Important note:To the extent that our press release contains forward-looking statements, the latter are based on information that is available at present and on our current forecasts and assumptions. Forward-looking statements, by their very nature, entail known as well as unknown risks and uncertainties that may lead to actual developments and events differing substantially from the forward-looking assessments. Forward-looking statements must not be understood to be guarantees. Instead, future developments and events depend on a large number of factors; they comprise various risks and imponderables and are based on assumptions that may possibly turn out not to be appropriate. These include unforeseeable changes to fundamental political, economic, legal and societal conditions, particularly in the context of our main customers’ industries, the competitive situation, interest and exchange rate trends, technological developments as well as other risks and uncertainties. We perceive additional risks e.g. in pricing developments, unforeseeable events in the environment of companies acquired and Group member companies as well as in current cost savings programs from time to time. The SGL Carbon assumes no obligation and does not intend to adjust or otherwise update these forward-looking statements either.SGL Carbon SECorporate Communications Andreas Pütz – Vice President Corporate Communications and Marketing Soehnleinstrasse 8 65201 Wiesbaden/GermanyTelephone +49 611 6029-100 Fax +49 611 6029-101 press@sglcarbon.com www.sglcarbon.comInvestor Relations Raj Junginger – Head of Investor Relations Soehnleinstrasse 8 65201 Wiesbaden/GermanyTelephone +49 611 6029-103 Fax +49 611 6029-101 investor.relations@sglcarbon.com www.sglcarbon.com    LinkedIn    Facebook    Twitter

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