DGAP-Adhoc: SGL CARBON SE: SGL Carbon SE suspends guidance for the current fiscal year, the previously communicated targets for 2020 are unlikely to be achieved due to the COVID-19 pandemic
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DGAP-Ad-hoc: SGL CARBON SE / Key word(s): Profit Warning
SGL Carbon SE suspends guidance for the current fiscal year, the previously communicated targets for 2020 are unlikely to be achieved due to the COVID-19 pandemic
Wiesbaden, April 1, 2020. The Board of Management of SGL Carbon SE determined today, that the forecasted results for the fiscal year 2020 are unlikely to be achieved due to the global COVID-19 pandemic. In light of the substantial uncertainty regarding the duration and the consequences of the COVID-19 pandemic, the Board of Management is currently unable to provide a reliable sales revenue and earnings forecast for the current year. Consequently, the guidance for 2020 is suspended. The previous expectation, which guided for a slightly lower sales revenue und a recurring EBIT1 approximately 10-15% below the prior year (sales revenue 2019: €1,087m; recurring EBIT 2019: €48m), was already made conditional by the Board of Management in the management report published on March 12, 2020, that negative effects from the coronavirus were not included, as the outbreak at that time was mainly restricted to China and Italy. In the meantime, numerous other governments have introduced far reaching measures with substantial limitations on the public and economic sectors and leading economists now forecast significant reductions in economic output in key economies. As already communicated, January and February 2020 developed in line with our previous expectations. However, it has to now be assumed, that initial negative deviations will be visible in March 2020, mainly in the business unit Composites - Fibers & Materials (CFM), which is predominantly affected by the temporary production stops resp. reductions particularly by the German automotive OEMs. The Board of Management of SGL Carbon has introduced and partially already implemented comprehensive measures to reduce the cost base and to secure liquidity. These measures include the introduction of short-time work, reduction of material and indirect spend, as well as further reduction resp. postponement of capital expenditures. In addition, we are exploring further financing options independent of the capital markets, some of which are already in preparation. The Company is intensively working on identifying and mitigating potential risks. Highest priority lies in the health and safety of all employees and the safeguarding of liquidity. As of March 31, 2020, liquidity was slightly higher than at year end 2019 (December 31, 2019: €137m). 1The use of KPIs in this notification is aligned to the annual report 2019 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: Important note: 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.
01-Apr-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
| Language: | English |
| Company: | SGL CARBON SE |
| Söhnleinstraße 8 | |
| 65201 Wiesbaden | |
| Germany | |
| Phone: | +49 (0)611 6029 - 0 |
| Fax: | +49 (0)611 6029 - 101 |
| E-mail: | [email protected] |
| Internet: | www.sglcarbon.com |
| ISIN: | DE0007235301, DE000A2G8VX7 |
| WKN: | 723530, A2G8VX7 |
| Indices: | Prime Standard |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1012613 |
| End of Announcement | DGAP News Service |
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1012613 01-Apr-2020 CET/CEST
SGL Carbon SE Stock
€6.97
-0.430%
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