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[May 2009]
SGL Group: Positive Q1 Net Income Despite Economic Situation
The SGL Group (Wiesbaden, Germany) achieved a positive net income in the first quarter 2009 despite the global financial and economic situation. Group sales decreased by 14% from €343 million in the first quarter 2008 to €296 million in the first quarter 2009, primarily due to the continued strong destocking activities and dramatic production cuts in the steel industry. Accordingly, sales in the Business Unit Performance Products declined disproportionately by 31%, while sales increased in the Business Units Graphite Materials & Systems and Carbon Fibers & Composites by 8% and 36% respectively.
EBIT decreased by 58% to €29.2 million (Q1/2008: €70.1 million) and corresponds to a group return on sales of 10% following 20% in the comparable quarter of the previous year. Cost savings of €8 million from the SGL Excellence Initiative could only partially compensate for the cyclical earnings impact from sales and production declines as well as from the high start-up costs associated for the new production facilities.
Robert Koehler, CEO of SGL Group, said: “The first quarter of SGL Group was also affected by the massive global economic crisis, which became more severe in the course of the first months of this year. Nevertheless, we have achieved a positive quarterly result as announced. The world economy is in a recession and the end can not be foreseen yet. Against the background of ongoing weak demand, further production cuts and continued high start-up costs for new production facilities, we expect the second quarter 2009 to be on the level of the first three months 2009. We continue to expect the dramatic destocking in the steel industry to end and a technical correction to follow in the second half of 2009”.
ENDS