SGL CARBON SE — Earnings Release 2003

Mar 1, 2004

News Details

Ad-hoc | 1 March 2004 15:13

SGL Carbon: Profit from operations for 2003 up significantly year-on-year

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– SGL Carbon: Profit from operations for 2003 up significantly year-on-year Net loss widens due to one-time charges affecting net financing costs Wiesbaden, March 1, 2004. The SGL Carbon Group recorded sales revenue for 2003 of around EUR1.05 billion (2002: EUR1.11 billion). Sales revenue was hit by declining demand in a number of business areas due to economic factors, as well as the slide of the US dollar against the euro. Adjusted for currency translation effects, sales revenue increased slightly. Profit from operations up sharply At its meeting today, the Supervisory Board approved the annual financial statements. SGL Carbon’s profit from operations before costs relating to antitrust proceedings and restructuring was up around one-third year-on-year at EUR39 million (2002: EUR29 million). The profit from operations after restructuring expenses also improved by around 45 percent on the previous year, to approximately EUR29 million. As part of its review of all provisions for antitrust risks, the Company increased the provision set up in Q3/2003 for the fine relating to its non-core Graphite Specialties activities to just under EUR20 million. SGL Carbon believes that the fine of EUR23.6 million imposed on the Company by the European Commission in December 2003 is unjustified and has appealed to the European Court. The profit from operations after all one-time expenses was well up on the previous year at EUR9 million (2002: loss of EUR2 million). Net financing costs hit by one-time charges Interest on borrowings and the interest component of the addition to pension provisions remained unchanged year-on-year at EUR37 million in total. All in all, net financing costs for 2003 amounted to EUR73 million. The difference of EUR36 million is largely due to the following one-time factors: the successful refinancing at the start of 2004 meant that the remaining costs from the previous financing package amounting to EUR16 million had to be derecognized. Net financing costs were also affected to the tune of EUR20 million by the non- cash imputed interest on liabilities arising from the North American antitrust proceedings (EUR6 million) and an interest charge on the disputed European antitrust proceedings (EUR6 million), as well as other charges (EUR8 million). Net loss increased As a result of the clear turnaround in our business in the USA, SGL Carbon has recognized a first portion of the loss carryforwards there on the basis of a conservative estimate. This resulted in a tax income of EUR10 million. Due to the substantial one-time costs relating to refinancing and antitrust proceedings, the net loss widened significantly year-on-year to around EUR50 million (2002: EUR24 million). SGL Carbon will present the comprehensive figures for 2003 at its annual press conference on March 16, 2004 in Frankfurt am Main. A confident outlook for fiscal 2004 SGL Carbon expects a moderate economic recovery in 2004. Due to further restructuring and efficiency-enhancing measures, higher prices for graphite electrodes and demand-driven improvements in results at Graphite Specialties and SGL Technologies, the Company is forecasting a substantial increase in its profit from operations in the current fiscal year. end of ad-hoc-announcement (c)DGAP 01.03.2004 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: No offer: This announcement does not constitute an offer to sell, or a solicitation of an offer to buy or sell, any securities of SGL Carbon. Securities may not be offered or sold in the United States absent registration or an exemption from registration; any public offering of securities in the United States must be made by means of a prospectus that may be obtained from the issuer and that contains detailed information about the company and management as well as financial statements. Forward-looking statements: This press release contains forward-looking statements. These statements reflect the current belief of SGL Carbon’s management as well as assumptions made by, and information available to, the SGL Group. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual future results and developments could differ materially from those set forth in these statements due to various factors. These factors include changes in the general economic and competitive situation, particularly in SGL Carbon’s businesses and markets; changes resulting from acquisitions and the subsequent integration of companies; and changes resulting from restructuring measures. In addition, future results and developments could be affected by the performance of financial markets; fluctuations in exchange rates; changes in national and supranational law, particularly with regard to tax regulations; and other risks and uncertainties, including those detailed in SGL Carbon’s filings with the U.S. Securities and Exchange Commission. SGL Carbon assumes no obligation to update forward-looking statements. Profit from operations ——————————————————————————– WKN: 723530; ISIN: DE0007235301; Index: MDAX Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 011513 Mär 04