#Composites

2021-11-18

SGL Carbon – Q3 2021 also confirms the encouraging upward trend

Following consolidated sales of €241.5 million in Q1 2021 and €255.2 million in Q2 2021, Q3 2021 confirms SGL Carbon's encouraging sales performance with €246.8 million. Due to increasing demand from almost all market segments, Group sales increased to a total of €743.5 million in the first nine months of the fiscal year (9M 2020: €683.5 million). This corresponds to an increase of 8.8% compared to the same period of the previous year.

• Sales increase 8.8% to €743.5 million compared to the same period of the previous year

• EBITDApre improves by 59.1% to €108.5 million

• Despite burdens from higher raw material and energy prices, stable revenue and earnings expected for Q4 2021

Almost all business units contributed to the positive sales development. As largest business unit with a 44.7% share of Group sales, Graphite Solutions (GS) contributed €332.7 million to Group sales in the first nine months of 2021 (9M 2020: €308.0 million). The sales increase of 8.0% is based in particular on the positive development of the important market segments Semiconductor & LED as well as Automotive & Transportation. The business units Carbon Fibers and Composite Solutions contributed €244.7 million (9M 2020: €223.4 million) and €92.1 million (9M 2020: €60.7 million), respectively, to Group sales and benefited primarily from increased demand from the automotive industry. Compared to the previous year, sales increased by 9.5% in Carbon Fibers and by 51.7% in Composite Solutions. Only the Process Technology business unit, with sales down 4.9% to €62.1 million, was not yet able to participate in the general economic upward trend.

Results situation:

SGL Carbon's EBITDApre improved by 59.1% year-on-year to €108.5 million in the first nine months (9M 2020: €68.2 million). Increased sales in almost all business units, the associated higher capacity utilization and new high-margin orders from the automotive industry in the Composite Solutions business unit contributed to the improvement in earnings. The cost savings achieved as a result of the transformation initiated at the end of 2020 also had a positive earnings impact. However, negative effects from significantly higher raw material and energy prices weighed on EBITDApre, especially in the isolated third quarter of 2021.

EBITDApre does not include non-recurring effects and special items totaling €6.2 million. These consist of non-recurring effects of €21.7 million, mainly from the proceeds generated by the sale of two properties not required for operations, netted against negative special items totaling €15.5 million.

EBIT also increased significantly to €71.8 million in the first nine months of 2021 compared to €24.8 million in the same period of the previous year. In addition to the positive effects mentioned above, the EBIT increase also results from the €9.2 million decrease in depreciation and amortization to €42.9 million (9M 2020: €52.1 million) due to the impairment carried out at the end of 2020.

Based on the positive business development, the successes of the transformation as well as one-off effects of € 21.7 million, thereof € 19.5 million from the sale of two properties, the consolidated net income after nine months in 2021 amounts to €42.6 million (9M 2020: minus €3.9 million).

Net financial debt and equity:

SGL Carbon's net financial debt decreased by 33.1% to €191.6 million as of September 30, 2021 compared to year-end 2020. This development was mainly due to the increase in cash and cash equivalents by €95.0 million to €236.8 million (December 31, 2020: €141.8 million). This is primarily based on a positive free cash flow, which increased significantly by €60.1 million to €122.5 million (9M 2020: €62.4 million) as a result of the positive business performance and the mentioned one-off effects (€30.6 million).

Equity attributable to equity holders of the parent company amounted to €308.4 million as at September 30, 2021, up 39.7% compared with the end of the last financial year (December 31, 2020: €220.7 million). Accordingly, the equity ratio increased to 22.7% (December 31, 2020: 17.5%).

Transformation program:

The restructuring and transformation process initiated at SGL Carbon at the end of 2020 has made a significant contribution to the Company's positive sales and earnings performance. In the third quarter of the current fiscal year, increased prices for raw materials, energy, and transport and logistics reduced the savings achieved, as these could only be passed on to customers in part and/or with time lags.

Outlook:

For the remaining months of fiscal year 2021, we see only limited market risks, also due to the order intake already received. We also consider the negative impact on the communicated sales and earnings forecast for 2021 due to increased raw material, energy and transport costs to be limited from today’s perspective. We do not anticipate any renewed deterioration in the general conditions due to the Corona pandemic.

According to the explanations given above, we confirm the revenue and earnings guidance for fiscal 2021 provided on July 13, 2021.

Further details on business development and outlook can be found in the quarterly statement on the first nine months 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

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

The third edition of JEC Forum organized in Southeast Asia brought together 350+ participants from 22 countries for three active days of high-level Business Meetings, conferences, and networking, emphasizing Southeast Asia’s growing role in the global composites market. Held for the first time in Taipei from 23 to 24 June 2026, following the successful first editions in Bangkok, JEC Forum Southeast Asia 2026 confirmed its position as the region’s leading business platform dedicated to the composites industry.

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.

SHIMA SEIKI brings new flat knitting technologies to FEBRATEX 2026

Leading flat knitting solutions provider SHIMA SEIKI MFG., LTD. of Wakayama, Japan, together with its Brazilian representative BRASTEMA TECNOLOGIA TEXTIL LTDA., will exhibit at the Brazilian Textile Industry Fair (FEBRATEX 2026) this month. On display will be a roundup of SHIMA SEIKI computerized flat knitting technology, represented by WHOLEGARMENT® knitting machines, computerized flat knitting machines featuring a brand-new model with high productivity and excellent cost performance, a glove knitting machine and the latest digital solutions.

Lenzing reports improved half-year results and advances strategic transformation

Despite a persistently challenging market environment in the first half of 2026, characterized by volatile energy and raw material prices, subdued global consumer demand and intensified competition from Asia, the Lenzing Group significantly improved its financial performance. Net result after tax more than doubled to EUR 35.6 million, compared with EUR 15.2 million in the first half of 2025. Free cash flow increased to EUR 45.8 million, while EBITDA amounted to EUR 239.2 million. Revenue totaled EUR 1.27 billion, compared with EUR 1.34 billion in the previous year.

Trützschler’s latest spinning and card clothing innovations at CAITME 2026

From September 8 to 10, 2026, Trützschler will present its latest innovations in spinning and card clothing for state-of-the-art fiber processing at CAITME in Tashkent, Uzbekistan. Visitors are invited to meet the experts at Pavilion 2, Booth D50 and explore solutions designed to increase productivity, streamline processes, and ensure consistently high yarn quality. Key topics include the next-generation card TC 30i, the integrated draw frame IDF 3, the high-performance comber TCO 21XL as well as Trützschler Card Clothing’s new flat top series STEELTOP®.