The following is a summary of the SGL Carbon SE (SGLFF) Q2 2024 Earnings Call Transcript:
Financial Performance:
SGL Carbon reported a decrease in sales by 4% to €538 million.
EBITDA pre decreased by 1.7%, now at €86.5 million, yet EBITDA margin improved to 16.1%.
Net financial results improved by approximately €40 million compared to the previous year, adjusting for a one-time impairment of €44.7 million in H1 2023.Free cash flow stands at €12.4 million, showing a positive result despite a slight decline.
Business Progress:
Significant improvements in Graphite Solutions driven by the semiconductor and LED business, with a slight slowdown in growth to 13% year-on-year from 34% in Q1.
Process Technology saw an 8.5% increase in sales to €69.9 million, supported by a strong order book and demand in parts and service business.
Challenges persist in Carbon Fibers with a 12% sales decline and a shift to restructuring measures to mitigate losses.
Composite Solutions faced a decline due to the termination of a profitable automotive contract, with expectations of some recovery through compensation payments.
Opportunities:
Growth in silicon carbide and semiconductor markets, particularly linked to electric vehicles and renewable energy.
Ongoing demand and a strong project pipeline in Process Technology.
Risks:
Slowdown in certain business units such as Carbon Fibers and Composite Solutions.
Economic impacts on industrial clients, affecting parts of the Process Technology segment.
Potential fluctuations and moderated expectations in the semiconductor segment affecting Graphite Solutions.
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