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[September 2004]
Hike in Profits for SGL Carbon
Sales in the first half of 2004 for SGL Carbon AG (Wiesbaden, Germany) totalled €505 million, 3% less than in the same period of 2003. Adjusted for foreign currency changes, sales rose by 2%. Compared to the first quarter, second quarter sales grew by 15% to €270 million.
Profit from operations after restructuring expenses for H1 2004 of €25.4 million were up by 41% over H1 2003 (€18 million). Adjusted for non-recurring expenses totalling €6.1 million and exceptional income of €2.8 million generated from the sale of the electrical contacts business during the first quarter of 2003, the HI 2004 profit from operations was more than double (107%) that of the previous year.
In the second quarter, profit from operations of €17.7 million as expected after restructuring costs was far more than double (130%) the previous quarter's figure of €7.7 million and 37% above the same quarter in 2003.
SGL said that in the Graphite Specialties Business area the company was benefitting from rising demand for electronic applications, process improvements, new product innovations and higher prices. The cost-cutting programmes have already generated savings of €15 million. SGL Carbon expects planned overall net savings - after deducting non-recurring expenditures of approximately €10 million - of €30 million in 2004.
ENDS