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SGL CARBON SE — Earnings Release 2009
Dec 21, 2009
389_rns_2009-12-21_695cc603-d19a-47b8-af41-1e5e1311dba6.html
Earnings Release
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News Details
Ad-hoc | 21 December 2009 18:57
SGL CARBON SE: SGL Group to recognize impairment charge
SGL CARBON SE / Miscellaneous
21.12.2009
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
Wiesbaden, December 21, 2009. In the process of preparing the Consolidated
Financial Statements for the year ending December 31, 2009, SGL Group has
undertaken goodwill and asset impairment tests as required under IAS 36.
In the recent years, the Business Unit Carbon Fibers & Composites made
substantial investments in technologies and new capacities. As a result of
the global financial and economic crisis, many of the new end market
developments for light weight materials, alternative energies, automotive,
aircraft, and other industrial applications were delayed for demand or
funding reasons. As a consequence, the Business Unit Carbon Fibers &
Composites in particular experienced low utilization of capacities and
temporary deterioration of price levels. It is anticipated that it will
take some time for market demand to fully recover to pre-crisis levels.
In this context SGL Group will book a non-cash asset impairment charge in
the Business Unit Carbon Fibers & Composites according to IFRS rules in the
annual results 2009. This charge is estimated at EUR 70 to 80 million.
Independent of this accounting measure, SGL Group remains confident of its
Carbon Fibers & Composites business in the longer term prospects. This view
is both supported by established customers, who are placing additional
business with SGL Group and new customers, who continue to be attracted by
the Group's expertise in the field of carbon fibers and composites as well
as by the strength of SGL Group's financial position.
In relation to the impairment tests, SGL Group's deferred tax assets need
to be reevaluated in light of lowered future income expectations following
the global crisis. SGL Group expects to recognize an additional tax charge
with respect to the company's previously capitalized deferred tax assets
related to tax losses carried forward. This non-cash charge will be
reflected in the tax computation and will not exceed a medium double digit
million EUR amount. The measure will not restrict the possibility to take
advantage of the tax losses carried forward in future. The normalized
operational tax rate remains unchanged at approximately 30%.
These statements are subject to finalization of the SGL Group's financial
statements 2009 and the year-end audit.
Information and Explaination of the Issuer to this News:
Important note:
This press release contains statements on future developments that are
based on currently available information and that involve risks and
uncertainties that could lead to actual results deviating from these
forward-looking statements. The statements on future developments are not
to be understood as guarantees. The future developments and events are
dependent on a number of factors; they include various risks and
unanticipated circumstances and are based on assumptions that may not be
correct. These risks and uncertainties include, for example, unforeseeable
changes in political, economic and business conditions, particularly in the
area of electric steel production, the competitive situation, interest rate
and currency developments, technological developments and other risks and
unanticipated circumstances. We see other risks in price developments,
unexpected developments relating to acquired and consolidated companies and
in the ongoing cost optimization programs. SGL Group does not intend to
update these forward-looking statements.
Press Contact:
Corporate Communications / Tino Fritsch
Phone +49 611 6029-105 / Fax +49 611 6029-101 / Mobile +49 170 540 2667
E-mail: [email protected] / www.sglgroup.com
21.12.2009 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de
Language: English
Company: SGL CARBON SE
Rheingaustraße 182
65203 Wiesbaden
Deutschland
Phone: +49 (0)611 6029 - 103
Fax: +49 (0)611 6029 - 101
E-mail: [email protected]
Internet: www.sglgroup.com
ISIN: DE0007235301
WKN: 723530
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hannover, München, Hamburg, Stuttgart
End of News DGAP News-Service