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SGL Carbon SE (SGLFF) Q2 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...

In This Article:

  • Sales: Decreased by 4% to EUR538 million from EUR560 million last year.

  • EBITDApre: Decreased by 1.7% to EUR86.5 million from EUR88 million last year.

  • EBITDApre Margin: Increased to 16.1%.

  • Graphite Solutions Sales: Increased by 1.3% to EUR284.2 million from EUR280 million last year.

  • Graphite Solutions EBITDApre: Increased by 10.9% to EUR72.2 million from EUR65 million last year.

  • Process Technology Sales: Increased by 8.5% to EUR69.9 million.

  • Process Technology EBITDApre Margin: Increased to 22.9% from 18.5% last year.

  • Carbon Fibers Sales: Decreased by 12% to EUR110.1 million from EUR125 million last year.

  • Carbon Fibers EBITDApre: Decreased to minus EUR4.4 million from EUR6.1 million last year.

  • Composite Solutions Sales: Decreased by 16% to EUR66.9 million from EUR79 million last year.

  • Composite Solutions EBITDApre: Decreased by 34.1% to EUR8.1 million.

  • Net Result: Improved by approximately EUR40 million compared to last year.

  • Free Cash Flow: Positive at EUR12.4 million, down from EUR20.1 million last year.

  • Net Financial Debt: Slight increase to EUR119 million from EUR116 million.

  • Leverage: 0.7.

  • Equity Ratio: 44.3%.

  • ROCE: 11.3%.

Release Date: August 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • SGL Carbon SE (SGLFF) reported a healthy EBITDA margin of 16.1% despite a decline in sales, indicating improved profitability.

  • Graphite Solutions business unit saw a significant improvement in profitability, driven by growth in the Semiconductor and LED sectors.

  • Process Technology unit achieved record sales and margins, with an 8.5% increase in sales compared to the previous year.

  • The company maintained a positive free cash flow, demonstrating effective cash management.

  • SGL Carbon SE (SGLFF) confirmed its full-year guidance, expecting sales to remain at prior year's level and EBITDApre to be within the guidance corridor, albeit at the lower end.

Negative Points

  • Overall sales declined by 4% year-on-year, impacted by currency adjustments and portfolio changes.

  • Carbon Fibers business unit experienced a 12% decrease in sales, with negative price trends and overcapacity issues.

  • Composite Solutions faced a 16% decline in sales due to the premature termination of a major automotive contract.

  • The slowdown in the growth of the silicon carbide segment is expected to impact sales in the second half of the year.

  • The company's net financial debt increased slightly, reflecting ongoing investment and spending activities.

Q & A Highlights

Q: What is the expected net impact of down payments in the second half of the year? A: Unfortunately, we can't provide a specific figure as we are still negotiating with customers. The net effect in the first half was EUR7 million, and we expect a lower level of down payments compared to last year. However, the exact amount for the second half is not disclosed.