The overall business development of SGL Group –The Carbon Company – in the first nine months of the fiscal year 2013 developed in line with the June guidance. Resulting from the continued price pressure in graphite electrodes and the cyclical downturn in graphite specialties, Group sales declined by 4% to €1,209.7 million.

Due to the adverse development in all three Business Areas, Group EBITDA decreased by 52% to €89.5 million (9M/2012: €188.6 million) and the EBITDA margin to 7.4% (9M/2012: 15.0%). Group EBIT before non-recurring charges declined to €28.0 million (9M/2012: €130.3 million). Group-wide savings from SGL2015 amounted to approximately €34 million, of which approximately €19 million were attributable to the SGL Excellence initiative.

Nine months report 2013

- Sales decreased 4% yoy due to price pressure in graphite electrodes and cyclical downturn in graphite specialties

- EBITDA before non-recurring charges down to €89.5 million

- Non recurring charges of €179.4 million in 9M/2013 consisting of extraordinary effects (Q2/2013) and restructuring expenses (Q3/2013)

- Significant improvement in free cash flow from minus €159.4 million to minus €16.1 million

- Guidance confirmed for FY 2013: EBITDA 50 - 60% below comparable prior year figure of €240 million

- First measures of Group-wide comprehensive cost savings program SGL2015 in the process of implementation

Robert Koehler, CEO of SGL Group: “The implementation of our Group-wide cost savings program SGL2015, which was initiated in August, is proceeding as planned.Initial measures are already in the process of being implemented. By the end of 2015, we intend to generate savings of approximately €150 million, approximately €50 million of which will already be realized in 2013. Despite the fact that the business development is far below our original expectations, we have been able to improve free cash flow by more than €140 million within the last 12 months.”

For the closure of the Canadian plant in Lachute in connection with SGL 2015, restructuring expenses for extraordinary write-downs of €24.9 million have been realized. Already in the second quarter 2013 negative non-cash extraordinary effects totaling €153.2 million were recorded in the Business Area CFC as required by IFRS.

Accordingly, Group EBIT including non-recurring charges was minus €151.4 million in the reporting period.

The financial result improved slightly to minus €37.3 million (9M/2013: minus € 38.5million). Result before tax therefore stood at minus €202.6 million (9M/2012: €25.2 million) and net loss at minus €277.8 million (9M/2012: minus €5.6 million), including extraordinary tax expenses of €68.7 million which were already recorded in the first half of 2013. Based on an average number of shares of 70.9 million, basic earnings per share dropped to minus €3.92 (9M/2012: minus €0.08).

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