#Composites

2021-08-12

SGL Carbon delivers strong first half of 2021 – transformation program and improving order situation show first successes

While the past fiscal year 2020 was still characterized by a Corona-related slump in orders in many business areas of SGL Carbon, demand picked up again in the first six months of 2021. Accordingly, Group sales increased by 8.8% to €496.7 million in H1 2021 (H1 2020: €456.5 million).

Sales up 8.8% to €496.7 million compared with first half of previous year

Adjusted EBITDA improves by 70.7% to €71.7 million

Positive business development led to forecast increase on July 13, 2021

The Carbon Fibers and Composite Solutions Business Units particularly contributed to the €40.2 million increase in sales. Carbon Fibers contributed €166.4 million to Group sales, especially benefiting from increased demand from the automotive market segment. In the Composite Solutions Business Unit, the increase in sales of 52.4% to €60.2 million was also primarily based on the recovering demand from the automotive industry.

With sales of €221.2 million, the Graphite Solutions business area contributed around 44.5% of SGL Group sales. The 3.8% increase in the division's sales was particularly due to the positive development in the important markets of the LED, semiconductor and automotive industries.

Earnings situation:

SGL Carbon's adjusted EBITDA (adjusted for one-off effects and non-recurring items) improved by 70.7% to €71.7 million in the half-yearly comparison (H1 2020: €42.0 million). The improvement in earnings was due to higher capacity utilization as a result of higher sales and, in particular, the savings already achieved under the transformation program. However, higher purchase prices for raw materials, energy as well as transport and logistics had a negative impact on earnings, which could be compensated by savings resulting from other areas.

Adjusted EBITDA does not include one-off effects and non-recurring totaling minus €5.2 million. EBIT has also increased significantly to €38.3 million in the first half of 2021 compared to €5.7 million in the prior-year period. Apart from the positive effects mentioned above, the EBIT increase also results from the € 5.1 million decrease in depreciation and amortization to €28.2 million (H1 2020: €33.3 million) due to the impairments carried out at the end of 2020.

In consideration of the slightly improved financial result of minus €14.0 million (H1 2020: minus €15.8 million), the consolidated result for the first six months of the current financial year was positive at €17.9 million, compared with minus €13.8 million in the same period of the previous year (in each case after deduction of non-controlling interests of €0.2 million). Therefore, positive earnings per share of €0.15 could be reported again in the first half of 2021.

Net financial debt and equity:

SGL Carbon's net financial debt decreased by €39.8 million or 13.9% to €246.7 million as of June 30, 2021. Main reason for this development was the increase in liquidity by €42.5 million mainly based on the positive free cash flow of €56.5 million.

As of June 30, 2021, equity attributable to equity holders of the parent company increased by €56.1 million (+25.4%) to €276.8 million (December 31, 2020: €220.7 million). Accordingly, the equity ratio increased to 20.8% as of June 30, 2021 (December 31, 2020: 17.5%).

Transformation program:

The restructuring and transformation process initiated at SGL Carbon made a significant contribution to the Company's positive sales and earnings performance. In addition to leaner and more efficient structures as well as a reorganization of the business units with responsibility for results, a large number of improvements and cost initiatives in all business units and sites have contributed to the success of the ongoing transformation program.

Forecast increase:

Due to pleasing business development in the first half of the year as well as transformation successes, SGL Carbon raised its forecast for fiscal year 2021 on July 13, 2021. For the financial year 2021, the company now expects consolidated sales of around €1.0 billion (previously: €920 - 970 million). In line with developments in the first half of 2021 and the results from the transformation, adjusted EBITDA for 2021 is expected to be between €130 - 140 million (previously: €100 - 120 million). Accordingly, a slightly positive net profit is now forecasted for fiscal year 2021 (previously: €-20 million to €0).

Further details on business development and outlook can be found in the Group's interim report for the first half of 2021.

SGL Carbon decides to restructure its Carbon Fibers business unit

The Board of Management of SGL Carbon SE today decided, with the approval of the Supervisory Board, to restructure the loss-making Carbon Fibers business unit. SGL Carbon will significantly reduce the business activities of Carbon Fibers and focus on a profitable core. Individual solutions are being developed for all Carbon Fibers sites, including the closure of unprofitable sites.

SGL Carbon evaluates strategic options for the carbon fibers and appoints Dr. Denis Hinz as new head of the business unit

SGL Carbon SE is currently evaluating various strategic options for the Business Unit Carbon Fibers (CF). These include a possible partial or complete divestment of the Business Unit. In a first step, potential interested parties shall be approached promptly with the general data of the Business Unit to determine their interest in an acquisition. If there is sufficient interest, a structured transaction process will be carried out in a second step.

Fewer pores, greater impact tolerance: Peter Dornier Foundation Prize 2026 honours material research on fibre-reinforced composite components for aerospace industry

The winners of the 2026 Peter Dornier Foundation Prize, together with Maja Dornier (centre), Chair of the Foundation’s Board, and the trustees of the Peter Dornier Foundation, following the awards ceremony. Microscopically small pores that form during manufacture, or barely visible impact damage, can severely impair the load-bearing capacity and service life of fibre-reinforced composite components. Two young researchers have presented groundbreaking work in this field and will both be awarded the 2026 Peter Dornier Foundation Prize: Dr.-Ing. Benedikt Neitzel from the Technical University of Ilmenau for his doctoral thesis on pore minimisation in the RTM process, and Johanna Buschmann, M.Sc., for her master’s thesis, completed at the German Aerospace Centre, on the improved impact tolerance of 3D fabrics compared to 2D laminates.

JEC Forum Southeast Asia 2026 highlights Taiwan as a strategic hub for the global composites industry

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MEL Composites supports ELA Aviation with advanced composite materials

MEL Composites is supplying advanced composite materials and process consumables to ELA Aviation for the production of its next-generation gyroplanes. The collaboration underlines MEL Composites’ growing role in advanced aerospace mobility, providing lightweight materials designed to improve aircraft performance, manufacturing efficiency and structural reliability.

C&S strengthens its governance to support its evolution

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