SGL Group Slips To Loss In Full Year, Expects Loss In 2014 - Update

(RTTNews) - SGL Carbon SE (SGLFF.PK) and its subsidiaries constituting the SGL Group, a manufacturer of carbon-based products and materials, Monday reported a loss for full-year 2013, citing mainly unsatisfactory price development in graphite electrodes and cyclical downturn in graphite specialties. Group sales fell 10 percent from last year.

Looking ahead, the company said it expects a net loss for 2014 both before and after taxes, however significantly lower than in fiscal year 2013, depending on the scope of further restructuring expenditures.

According to the firm, the negative trends seen in the final quarter of 2013 have continued into the first weeks of 2014, particularly in main business with graphite electrodes. As a result, Group sales should remain stable compared to 2013, it added.

Jürgen Köhler, CEO of the Group said, "2013 was operationally one of the most difficult years ever for our Company and developed disappointingly. As a result, we implemented the comprehensive group-wide cost savings program SGL2015 to counter the increasing challenges."

For full-year 2013, the company posted consolidated net loss attributable to equity holders of 396.4 million euros, compared to a profit of 5.9 million euros in the previous year. The firm has adjusted its prior-year results.

Operating profit or EBIT, before non-recurring charges, was 19.5 million euros, significantly down from 164.4 million euros a year ago, as a result of the adverse development in all three business areas.

For the year, the firm recorded non-recurring charges and restructuring expenses of 227 million euros, that included impairments, project write-offs and related restructuring expenses.

Group sales revenue fell 10.3 percent to 1.48 billion euros from 1.65 billion euros reported last year, reflecting unsatisfactory price development in graphite electrodes and cyclical downturn in graphite specialties.

Sales in Performance Products business area dropped 20 percent from last year, mainly due to unsatisfactory price development in graphite electrodes. Graphite Materials & Systems sales decreased 16 percent from a year ago.

Meanwhile, sales from continuing operations from Carbon Fibers & Composites were up 44.5 percent from the preceding year.

In addition, the company said the Board of Management and the Supervisory Board of SGL Carbon SE would not propose a dividend payment for fiscal 2013 to the Annual General Meeting, due to the high losses in fiscal 2013 and the weak start into the new business year.

On Frankfurt's Xetra, SGL shares are currently trading at 27.38 euros, down 1.19 percent.