SGL Carbon statement indicates decrease in carbon fiber demand for wind

According to preliminary figures for H1 2023, SGL Carbon’s (Wiesbaden, Germany) sales increased year-on-year from €549.8 million to €560.5 million, with EBITDApre almost unchanged at €88.0 million (H1 2022: €87.9 million). The expected positive business performance of the company’s Graphite Solutions business unit and the better-than-expected sales and earnings development of the Process Technology and Composite Solutions segments compensated the drop in demand in the Carbon Fibers business unit.

Graphite Solutions increased sales by 15.3% year-on-year to €280.6 million and EBITDApre by 20.6% to €65.1 million. With a 30.9% rise in sales (€64.4 million) and a significant improvement in EBITDApre from €4.1 million to €11.9 million, the business performance of Process Technology was reported to be significantly ahead of the original budget. Composite Solutions also reported a higher-than-expected sales increase of 14.4% to €79.6 million in H1 2023 and an increase in EBITDApre of 26.8% to €12.3 million compared to H1 2022. By contrast, the business performance of the Carbon Fibers unit was not in line with expectations, with a 28.9% decline in sales to €125.1 million and an EBITDApre contribution of €6.1 million (-78.4% compared to the first half of the previous year).

An important market segment of the Carbon Fibers business unit is the wind industry. Demand for carbon fibers for the wind industry has declined sharply since the beginning of the year. According to SGL Carbon’s current estimates, the expected recovery in demand in H2 2023 will not materialize for the time being. SGL Carbon expects customer demand from the wind industry to pick up in 2024.

Based on this, an impairment loss of between €40-50 million will be recognized on the assets of the Carbon Fibers business unit as of June 30, 2023. The impairment relates exclusively to Carbon Fibers; the operating business of the other business units is not affected.

Further information on the first six months of fiscal year 2023 can be obtained from the half-year report, which will be published on Aug. 3, 2023.