In This Article:
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Revenue: EUR782 million, down 4.8% compared to the first nine months of last year.
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EBIT Pre: EUR127.6 million, a decrease of 1.8% from EUR130 million last year.
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Graphite Solutions Sales: Flat with a 1.4% decrease; semiconductor and LED business grew by 4%.
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Graphite Solutions Margin: Increased to 25.3%, up by 1.5% from last year.
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Process Tech Sales: EUR106.2 million, up 11% from last year.
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Process Tech EBITA Pre: EUR25.6 million, up 46.3% from last year.
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Carbon Fiber Sales: EUR157.1 million, down 12.5% from last year.
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Carbon Fiber EBITA Pre: Minus EUR7.9 million, EUR11 million down from last year.
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Composite Solutions Sales: EUR95.8 million, down 16% from last year.
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Composite Solutions EBITA Pre: EUR10.7 million, down 35% from last year.
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Net Result: EUR32.8 million, compared to EUR5.3 million last year.
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Free Cash Flow: EUR15.5 million, down from EUR35 million last year.
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Net Financial Debt: Increased by EUR7 billion, leverage level at 0.7.
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Equity Ratio: 43.3%, expected to be around 40% after impairment.
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ROCE: 11.1%.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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SGL Carbon SE (SGLFF) maintained a stable EBITA pre of EUR127.6 million, only a 1.8% drop from the previous year, despite a decline in sales.
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The Process Technology segment showed remarkable growth, with sales up by 11% and EBITA pre increasing by 46.3%, reaching a margin of 24.1%.
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Graphite Solutions, the largest business unit, maintained a healthy margin of 25.3%, with a slight sales decline of only 1.4%.
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The company has a positive free cash flow of EUR15.5 million, despite a decrease from the previous year.
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SGL Carbon SE (SGLFF) confirmed its guidance for 2024, expecting to meet the lower end of its EBITA range of EUR161 to EUR170 million.
Negative Points
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Overall sales for the first nine months of 2024 were down by 4.8% compared to the previous year, with a like-for-like sales drop of 3.6%.
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The Carbon Fiber business unit experienced a significant decline, with sales down by 12.5% and an EBITA pre loss of EUR7.9 million.
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Composite Solutions saw a 16% drop in sales due to a terminated contract, impacting its EBITA pre by 35%.
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The semiconductor and silicon carbide markets are experiencing a slowdown, with no expected growth in silicon carbide for 2025.
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The company anticipates a non-cash impairment of EUR60 to EUR80 million by year-end, affecting net results and equity.
Q & A Highlights
Q: Can you provide an update on the negotiations regarding the cancellation fee with your customer in the composite solutions segment? A: These talks are still ongoing. It's a tough negotiation, but we are confident that we will secure a certain compensation. We aim to maintain a good relationship with the OEM while negotiating.