DGAP-Ad-hoc: SGL CARBON SE / Key word(s): Change in Forecast/Personnel
Following the analysis of the actual results of the business unit Composites - Fibers & Materials (CFM) in July 2019, SGL Carbon SE is correcting its guidance. Chief Executive Officer Dr. Jürgen Köhler has resigned effective August 31, 2019.
Wiesbaden, August 14, 2019: The actual results of July 2019 of the business unit Composites - Fibers & Materials (CFM) of SGL Carbon show a significant deviation from our expectations. Analyses of the actual results and the plan were conducted to clarify, whether this deviation has an impact on the guidance for the business unit and the Group. As a result, we today correct our 2019 guidance for the business unit CFM and the Group.
For the business unit CFM, we now expect for the fiscal year 2019 a recurring EBIT1 in a mid-single digit million EUR amount (previous guidance: recurring EBIT close to the prior year level of approximately EUR21 million).
The deviation to the previously expected recurring EBIT of the business unit CFM can be attributed to the following factors, each contributing approximately to half of the deviation:
- Within the framework of a high-volume contract in the market segment Wind Energy, which was initially shipped in July 2019, erroneous planning assumptions were discovered.
- The actual results for July 2019 also document that the anticipated recovery in the market segment Industrial Applications as well as the planned earnings improvement measures will not benefit the results in the second half 2019 in the expected magnitude.
Due to these new findings, counter measures will be required. Amongst others, restructuring measures are being considered.
This development also results in a new guidance for Group recurring EBIT for 2019: Results in the business unit Graphite Materials & Systems (GMS) and Corporate, which in total will be a mid-single digit million EUR amount higher than expected, will only partially be able to compensate for the deterioration in the business unit CFM. Therefore, we now expect a recurring Group EBIT approximately EUR10 million below the prior year level (previous guidance: approximately on prior year level of EUR65 million). Accordingly, consolidated net results are expected to reach a high single digit million loss (previous guidance: break-even consolidated net result).
In consideration of these developments, the Group guidance for 2020-2022 is no longer sustainable. We plan to publish the new guidance after completing the new Group plan in January 2020 at the latest.
As a consequence of this development, the Chief Executive Officer Dr. Jürgen Köhler has informed the supervisory board today that he has resigned from his mandate as Chief Executive Officer effective August 31, 2019. The Chairwoman of the Supervisory Board has complete respect and understanding for this decision.
1 The use of KPIs in this notification is aligned to the annual report 2018 which is available under www.sglcarbon.com. 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:
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.
14-Aug-2019 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
|Company:||SGL CARBON SE|
|Phone:||+49 (0)611 6029 - 0|
|Fax:||+49 (0)611 6029 - 101|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange|
|EQS News ID:||857927|
|End of Announcement||DGAP News Service|
857927 14-Aug-2019 CET/CEST