SGL CEO resigns following weaker financial performance in July

SGL CEO resigns following weaker financial performance in July

6:05 AM, 17th August 2019
SGL Carbon logo

WIESBADEN, GERMANY: SGL Carbon said that its CEO Jurgen Kohler has resigned after the company tumbles its full-year earnings guidance following a weaker-than-expected financial performance in July 2019.

The actual results of July 2019 of the business unit Composites – Fibers & Materials (CFM) of SGL Carbon show a significant deviation from its expectations, the company said.

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 € 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 €10 million below the prior year level (previous guidance: approximately on prior year level of €65 million). Accordingly, consolidated net results are expected to reach a high single digit million loss (previous guidance: break-even consolidated net result).

The company said that 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.

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