WIESBADEN (dpa-AFX) - Carbon fiber specialist SGL Carbon expects demand from the wind industry to remain weak in the current year. The carbon fiber division, which may soon be up for sale, is likely to suffer most from this. The Board of Management assumes that the business will continue to record operating losses and thus burden the Group result. The outlook and the figures were poorly received on the stock market: SGL Carbon shares lost 2.4 percent on Friday morning.

As the SDax-listed company announced in Wiesbaden, total sales in 2024 are likely to stagnate at around the previous year's level of just under 1.1 billion euros. The Board of Management still expects all four operating business units to contribute to this.

How much SGL Carbon will earn in day-to-day business for the year as a whole will depend on the planned sale of the carbon fiber segment: If the segment remains in the Group, the Board of Management expects an adjusted operating profit (EBITDA) of 160 to 170 million euros. In the event of a separation, the result should be between 180 and 190 million.

SGL Carbon is divided into four business units. With a good half of sales, Graphite Solutions was the largest division in 2023. This is where the Board of Management places its semiconductor and LED-related products, among other things. Revenue increased by a good tenth to around 566 million euros. The two smaller divisions are Process Technology, which focuses on the construction of large-scale plants for industrial applications, and Composite Solutions, where SGL Carbon manufactures lightweight materials. They also increased their earnings.

In contrast, the problem child - the carbon fiber division - suffered a setback. Here, sales fell by more than a third to 225 million euros due to the slump in demand on the wind energy market. As a result, some production lines had to be shut down, which led to high idle capacity costs, it was reported. The operating result (EBITDA) adjusted for one-off effects fell even more sharply from 36 million euros in the previous year to 7.2 million euros. Since February, the Board of Management led by Group CEO Torsten Derr has been examining the strategic options for the second-largest segment after Erlos, including a possible sale as a whole or in parts.

SGL Carbon itself saw the past year as a year of stabilization and investment. In 2023, sales fell by a good 4 percent compared to the previous year to just under 1.1 billion euros. Due to persistently weak business with the wind industry, earnings before interest and taxes (EBITDA) adjusted for special items fell by 2.5 percent to 168.4 million euros. SGL Carbon's key figures were roughly in line with analysts' average expectations.

Analyst Henrik Paganetty from investment house Jefferies positively emphasized that SGL Carbon had managed to become more profitable despite the weakness in carbon fibers. The improved margin is an indication that the remaining business segments are developing strongly.

In contrast, net profit slumped from 126.9 million in the previous year to 41 million euros. The SGL Carbon Board of Management justified this with an impairment in the carbon fiber area, among other things. In addition, tax income was lower than in the previous year due to "valuation adjustments".

The previous day, acting CEO Torsten Derr had informed the Supervisory Board that he did not wish to extend his contract. He will therefore continue to manage the company until May 31, 2025 at the latest, and the Supervisory Board is looking for a successor./ngu/mis/jha/