Form 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of: November 2002
SGL CARBON Aktiengesellschaft
(Name of registrant)
Rheingaustrasse 182
65203 Wiesbaden
Germany
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F:
Form 20-F X Form 40-F
------- -------
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the SEC
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes No X
----- ---
If "Yes" is marked, indicate the file number assigned to the registrant in
connection with Rule 12g3-2(b): N/A
Exhibit Index
1. Interim Report for First Three Quarters of 2002.
EXHIBIT 1
Prepared in accordance with International Accounting Standards, IAS (unaudited)
Report on the First Three Quarters of 2002
-- Sharp increase in profit from operations and profit after tax in Q3
-- Operational cash flow more than doubled during the first three quarters
-- Reduction in losses at SGL Technologies exceeds expectations
-- Success of restructuring measures above plan
The Company generated consolidated sales revenue of (euro)284 million in
Q3/2002, 2% above the revenue for Q2 and 5% below the prior-year quarter. Profit
from operations increased in Q3 to (euro)11 million, up 56% compared with Q2 and
82% on the prior-year quarter. Net financing costs were (euro)7 million in Q3
after (euro)9 million in Q2 and income of (euro)1 million in the prior-year
quarter.
Profit before tax in Q3 was (euro)4 million after a loss of (euro)1 million in
Q2/2002 and a profit of (euro)8 million in Q3/2001. Following two quarters in
which a net loss was recorded the Company returned in Q3/2002 to generate a
profit after tax of (euro)5 million (Q2/2002: (euro)-2 million, Q3/2001: (euro)3
million).
Consolidated sales revenue for the nine-month period was down 10% on the prior
year at (euro)822 million; this overall decline is due to cyclical weakness in
key SGL Carbon customer industries. Profit from operations amounted to (euro)19
million and the loss after tax was (euro)6 million (2001: (euro)5 million and
(euro)-34 million net loss including a (euro)35 million provision for antitrust
risks).
As a result of its five-point program the Company further reduced net financial
liabilities in Q3. At (euro)454 million as of the end of the period under review
they were (euro)73 million lower compared to the beginning of the year. In the
first nine months working capital has been cut by (euro)74 million - excluding
exchange rate effects - through focused inventory management and sale of
receivables. Operational cash flow increased to (euro)154 million compared to
(euro)67 million in the comparable prior-year period excluding exchange rate
effects. We improved the free cash flow by (euro)102 million to (euro)70
million.
At the end of September the Company's share price came under heavy pressure and
fell below (euro)5.00 at times. The reason for this, in addition to the
generally weak stock market climate, was unconfirmed speculation about a
possible fine by the European antitrust authorities related to Graphite
Specialties. However, the investigations in question are not related to new
facts, but are part of investigations which have been ongoing in Europe since
1997. The Company already published information about this at the end of June in
the course of its regular reporting. All transactions are connected to the
(euro)80 million fine imposed on Graphite Electrodes in July 2001; the Company
is currently taking legal actions against this decision at the EU court for
reasons of double punishment and gross disproportion. The Company is confident
that the court will confirm this opinion.
Businesses of Carbon and Graphite as well as SGL Technologies were in line with,
or in some cases slightly above, the estimates given at the beginning of the
year. In the case of Graphite Specialties and Corrosion Protection, however,
demand has slowed significantly and orders have been postponed into 2003.
Restructuring and cost-cutting plans are ahead of schedule, and the Company
therefore intends to bring forward additional measures planned for 2003; these
mainly include headcount reduction, originally of 430 and now of over 650 jobs,
as well as an additional reduction in inventories to further improve working
capital and cash flow. The estimated costs of approximately (euro)10 million
will be brought forward to Q4/2002 and accordingly relieve the result for 2003.
The Company anticipates that the result for H2 will improve significantly on the
result for H1.
Negotiations on Group refinancing are currently in progress; SGL expects to be
able to conclude them within a few weeks, thus putting the Group's financing on
a sound more midterm footing.
Financial Highlights ((euro)million, except per share amounts)
------------------------------------------------------------------------------------------------------------
First Three Quarters First Three Quarters
------------------------------------------------------------------------------------------------------------
(unaudited) 2002 2001
------------------------------------------------------------------------------------------------------------
Sales revenue 821.9 915.0
------------------------------------------------------------------------------------------------------------
EBITDA before antitrust charge1 79.9 105.0
------------------------------------------------------------------------------------------------------------
Profit from operations before antitrust charge1 19.2 40.3
------------------------------------------------------------------------------------------------------------
Profit from operations
after antitrust charge1 19.2 5.3
------------------------------------------------------------------------------------------------------------
Return on sales2 2.3 % 4.4 %
------------------------------------------------------------------------------------------------------------
Net loss before minority interests -6.2 -33.7
------------------------------------------------------------------------------------------------------------
Earnings per share -0.30 -1.56
------------------------------------------------------------------------------------------------------------
Operational cash flow3 154.3 67.2
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
Sept 30, Dec 31,
------------------------------------------------------------------------------------------------------------
(unaudited) 2002 2001
------------------------------------------------------------------------------------------------------------
Total assets 1,346 1,495
------------------------------------------------------------------------------------------------------------
Equity 220 255
------------------------------------------------------------------------------------------------------------
Net financial liabilities (net debt) 454 527
------------------------------------------------------------------------------------------------------------
Debt ratio (gearing)4 2.1 2.1
------------------------------------------------------------------------------------------------------------
Equity ratio5 16.3 % 17.1 %
------------------------------------------------------------------------------------------------------------
1 Antitrust charge of 35 million in second quarter of 2001.
2 Ratio of profit from operations before antitrust charge to sales revenue.
3 Without currency exchange rate effects.
4 Financial liabilities less cash and cash equivalents divided by
shareholders' equity.
5 Shareholders' equity divided by total assets.
News from SGL Carbon's Businesses
-- SGL Carbon Subsidiary HITCO wins Contract for Airbus A-380
For further details, please visit our website at WWW.SGLCARBON.COM
-----------------
Segment reporting
Carbon and Graphite [CG]
-----------------------------------------------------------------------------
First Three Quarters First Three Quarters
-----------------------------------------------------------------------------
((euro)million) 2002 2001
-----------------------------------------------------------------------------
Sales revenue 402.3 464.5
-----------------------------------------------------------------------------
EBITDA 69.2 91.5
-----------------------------------------------------------------------------
Profit from operations 42.1 64.1
-----------------------------------------------------------------------------
Return on sales 10.5 % 13.8 %
-----------------------------------------------------------------------------
-- Sales revenue in Carbon and Graphite amounted to (euro)136 million in
Q3, a decline of 3% on Q2 that was primarily due to exchange rate
effects. During the nine-month period, sales revenue dropped 13% to
(euro)402 million, mainly as a result of price factors and low volume
in Q1.
-- The steel industry continues to show signs of improvement following
the specific crisis in the USA and the end of the inventory reductions
in Europe. Demand also picked up in Asia. Despite the fact that Q3 in
Graphite Electrodes is typically weaker for seasonal reasons, sales
volume increased here by 6% to 44,500 tons compared to 42,100 tons in
Q2. For the year to date period this was 7% down on the prior year at
121,200 tons. The average price for Graphite Electrodes in Q3 was
(euro)2,200/ton, a decline of 17% on the prior-year quarter. Carbon
and Graphite intends to apply the price increase of approximately 10%
- as previously announced - to contracts to be negotiated for 2003.
-- Profit from operations rose 47% to (euro)18 million (Q2/2002: (euro)12
million), up 22% on Q3/2001 ((euro)15 million) mainly as a result of
successful restructuring. Profit from operations for the first nine
months amounted to (euro)42 million, down 34% on the prior-year period
((euro)64 million).
-- Business in the remaining Carbon and Graphite areas (carbon
electrodes, cathodes, furnace linings) was healthy; sales revenue
increased by 15% to (euro)111 million compared to the first nine
months of 2001. This was principally due to the strong business in
cathodes for the aluminum industry.
-- Carbon and Graphite expects demand to remain high in Q4 and that
results will develop along similar lines to Q3.
Graphite Specialties [GS]1
-----------------------------------------------------------------------------------
First Three Quarters First Three Quarters
-----------------------------------------------------------------------------------
((euro)million) 2002 2001
-----------------------------------------------------------------------------------
Sales revenue 150.9 183.5
-----------------------------------------------------------------------------------
EBITDA 17.3 35.0
-----------------------------------------------------------------------------------
Profit from operations 3.6 18.4
-----------------------------------------------------------------------------------
Return on sales 2.4 % 10.0 %
-----------------------------------------------------------------------------------
1 2001 Business Area results have been restated to reclassify the graphite
foils business (expanded graphite) from GS to SGL T
-- The continued economic slowdown in Europe and North America in several
key industries, such as semiconductors, plant and engineering and
chemical industry, led to a decline in sales revenue of 18% to
(euro)151 million in the first nine months of the current fiscal year
compared to the prior-year period. Sales revenue in Q3/2002 remained
constant at (euro)50 million compared to Q2/2002 (Q3/2001: (euro)56
million).
-- Profit from operations during the first nine months of 2002 amounted
to (euro)4 million compared to (euro)18 million for the prior-year
period, and was particularly affected by the 15% drop in volume and by
focused reductions in inventory. Despite this decline in sales
revenue, GS successfully reduced inventories by (euro)16 million in
the year-to-date period in order to increase cash flow, and generated
a profit from operations of (euro)1 million in Q3. This figure was
unchanged from Q2/2002 (Q3/2001: (euro)7 million).
-- Graphite Specialties does not anticipate significant improvement in
demand during Q4/2002. Restructuring measures to be brought forward
from 2003 will affect the result by a single-digit million figure,
together with reductions in inventories designed to prioritize the
goals of increasing cash flow and reducing financial liabilities.
Corrosion Protection [CP]
-----------------------------------------------------------------------------
First Three Quarters First Three Quarters
-----------------------------------------------------------------------------
((euro)million) 2002 2001
-----------------------------------------------------------------------------
Sales revenue 151.4 163.1
-----------------------------------------------------------------------------
EBITDA 6.8 8.6
-----------------------------------------------------------------------------
Profit from operations - 1.0
-----------------------------------------------------------------------------
Return on sales 0.0 % 0.6 %
-----------------------------------------------------------------------------
-- Customers in the chemical, energy and environmental industries are
continuing their cautious policy on investment and maintenance
expenditures, resulting in a drop in sales revenue of 7% to (euro)151
million for the first three quarters compared to the prior-year
period. Due to seasonal effects, sales revenue rose by 26% compared to
Q2 to (euro)59 million, despite declining 6% compared to Q3/2001.
-- CP broke even in terms of its profit from operations in Q3 and for the
first nine months. The latter figure was down (euro)1 million in total
compared to the first three quarters of 2001, mainly due to poor sales
revenue and staff reduction costs.
-- Business conditions are not expected to improve in CP in the short
term; however, CP does anticipate a positive overall profit from
operations, due to the fact that billing for projects generally takes
place in Q4. Nevertheless, profit from operations will be
substantially down on 2001 figures due to the downturn in the economy
and postponement of orders into 2003.
-- Ongoing cost-cutting measures are proving effective and will continue
to contribute to increasing profitability.
As in Graphite Specialties, additional staff cuts which the Company
intends to bring forward from 2003 into Q4/2002 will affect the Q4
result by a low single-digit million figure.
Established Businesses [CG, GS, CP]
---------------------------------------------------------------------------------
First Three Quarters First Three Quarters
---------------------------------------------------------------------------------
((euro)million) 2002 2001
---------------------------------------------------------------------------------
Sales revenue 704.6 811.1
---------------------------------------------------------------------------------
EBITDA 93.3 135.1
---------------------------------------------------------------------------------
Profit from operations 45.7 83.5
---------------------------------------------------------------------------------
Return on sales 6.5 % 10.3 %
---------------------------------------------------------------------------------
SGL Technologies [T]1
---------------------------------------------------------------------------------
First Three Quarters First Three Quarters
---------------------------------------------------------------------------------
((euro)million) 2002 2001
---------------------------------------------------------------------------------
Sales revenue 115.4 101.2
---------------------------------------------------------------------------------
EBITDA 3.3 -14.0
---------------------------------------------------------------------------------
Loss from operations -9.7 -27.1
---------------------------------------------------------------------------------
Return on sales -8.4 % -26.8 %
---------------------------------------------------------------------------------
1 2001 Business Area results have been restated to reclassify the graphite
foils business (expanded graphite) from GS to SGL T
-- Sales revenue at SGL T remained approximately constant at (euro)39
million in Q3 compared to the prior quarter and was up 29% on Q3/2001.
Business for the year to date was up 14% to (euro)115 million.
Developments in aerospace/defense, brake discs, fibers and foils were
particularly encouraging.
-- Despite the vacation season SGL T's loss was up slightly
quarter-on-quarter in Q3/2002, but down substantially compared to the
prior-year quarter. All in all, the loss declined from (euro)27
million to (euro)10 million during the nine-month period, thus
contributing to the Company's growth drive and cost-cutting measures.
-- HITCO Carbon Composites, Inc., SGL's US subsidiary, has secured a
strategically important order from Airbus Deutschland GmbH to supply
tail unit components for the new Airbus A-380.
-- The new plant for the series production of the Company's
carbon-ceramic brake discs is operating smoothly and producing
consistently high quality. Carbon Fibers business is improving, with
sales revenue increasing sharply. Graphite Foils business (expanded
graphite) for the automotive industry continues to develop positively.
-- For the year 2002 as a whole, SGL T continues to expect to cut losses
by at least 50% compared to 2001.
Corporate
------------------------------------------------------------------------------
First Three Quarters First Three Quarters
------------------------------------------------------------------------------
((euro)million) 2002 2001
------------------------------------------------------------------------------
Sales revenue 1.9 2.7
------------------------------------------------------------------------------
Corporate costs -16.8 -16.1
------------------------------------------------------------------------------
-- Costs in the first nine months of 2002 were in line with projections
for the year at(euro)17 million.
-- For the year 2002 as a whole, SGL also expects costs to remain almost
unchanged in comparison to 2001.
Employees
The number of employees of the Group dropped by 666 from 8,197 at the
end of 2001 to 7,531 at September 30, 2002 as a result of
restructuring measures.
Consolidated Income Statement ((euro)million, except per share amounts)
-------------------------------------------------------------------------------------------------------------------
First Three Quarters First Three Quarters
-------------------------------------------------------------------------------------------------------------------
(unaudited) 2002 2001
-------------------------------------------------------------------------------------------------------------------
Sales revenue 821.9 915.0
-------------------------------------------------------------------------------------------------------------------
Gross profit 173.9 213.7
-------------------------------------------------------------------------------------------------------------------
Selling, administrative, research and other costs -154.7 -173.4
-------------------------------------------------------------------------------------------------------------------
Profit from operations before antitrust charge 19.2 40.3
-------------------------------------------------------------------------------------------------------------------
Antitrust charge - -35.0
-------------------------------------------------------------------------------------------------------------------
Profit from operations 19.2 5.3
-------------------------------------------------------------------------------------------------------------------
Financing costs:
-------------------------------------------------------------------------------------------------------------------
Interest expense on loans -20.2 -19.5
-------------------------------------------------------------------------------------------------------------------
Interest expense on pensions -7.8 -7.3
-------------------------------------------------------------------------------------------------------------------
Currency impacts on antitrust liabilities (non-cash) 2.7 -2.1
-------------------------------------------------------------------------------------------------------------------
Imputed interest on antitrust liabilities (non-cash) 1.8 -3.3
-------------------------------------------------------------------------------------------------------------------
Other 1.3 -
-------------------------------------------------------------------------------------------------------------------
Net financing costs -22.2 -32.2
-------------------------------------------------------------------------------------------------------------------
Loss before tax -3.0 -26.9
-------------------------------------------------------------------------------------------------------------------
Income tax -3.2 -6.8
-------------------------------------------------------------------------------------------------------------------
Net loss before minority interests -6.2 -33.7
-------------------------------------------------------------------------------------------------------------------
Earnings per share -0.30 -1.56
-------------------------------------------------------------------------------------------------------------------
-- The Company increased its profit from operations in Q3 in line with
estimates to just over (euro)11 million, which led to a profit of
(euro)19 million for the first nine months (prior year: (euro)5
million after provisions for antitrust risks of (euro)35 million).
-- Interest expense on loans over the nine months remained constant
compared to the prior year at around (euro)20 million; the average
interest rate for the period was 4.5% (prior year: 4.9%).
-- Translation of the US antitrust liabilities in the course of the
current year-to-date period led to a positive (non-cash) exchange rate
effect of (euro)3 million due to the weakness of the US dollar.
-- Non-cash interest accrued on liabilities from antitrust proceedings
contributed positively to the net financial costs in the year-to-date
period. As reported, the renegotiation of the payment plan had led to
an one-time reduction in the financial result of (euro)5 million in
Q1/2002.
-- Tax expense is the result of positive earnings from foreign
subsidiaries that cannot be offset against losses from other Group
companies. Deferred tax assets on ongoing losses in 2002 remained
unrecognized for the Group's companies in the USA and the United
Kingdom. This resulted in a tax relief shortfall of (euro)7 million
which possibly can be utilized in the future.
-- Earnings per share are calculated on the basis of an average of 21.8
million shares outstanding (2001: 21.6 million).
-- Consolidated Balance Sheet ((euro) million)
----------------------------------------------------------------------------------------------------
Sept 30, Dec 31,
(unaudited) 2002 2001
----------------------------------------------------------------------------------------------------
Assets
----------------------------------------------------------------------------------------------------
Intangible assets 101 111
----------------------------------------------------------------------------------------------------
Property, plant and equipment 493 554
----------------------------------------------------------------------------------------------------
Long-term investments 34 34
----------------------------------------------------------------------------------------------------
Noncurrent assets 628 699
----------------------------------------------------------------------------------------------------
Inventories 332 394
----------------------------------------------------------------------------------------------------
Trade receivables 208 262
----------------------------------------------------------------------------------------------------
Other current assets including cash and cash equivalents 92 60
----------------------------------------------------------------------------------------------------
Current assets 632 716
----------------------------------------------------------------------------------------------------
Deferred tax assets 86 80
----------------------------------------------------------------------------------------------------
Total assets 1,346 1,495
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
Sept 30, Dec 31,
(unaudited) 2002 2001
----------------------------------------------------------------------------------------------------
Equity and Liabilities
----------------------------------------------------------------------------------------------------
Equity 220 255
----------------------------------------------------------------------------------------------------
Minority interests 2 1
----------------------------------------------------------------------------------------------------
Provisions for pensions and other employee benefits 193 193
----------------------------------------------------------------------------------------------------
Other provisions 147 165
----------------------------------------------------------------------------------------------------
Provisions 340 358
----------------------------------------------------------------------------------------------------
Financial liabilities 490 539
----------------------------------------------------------------------------------------------------
Trade payables 90 108
----------------------------------------------------------------------------------------------------
Other liabilities 166 197
----------------------------------------------------------------------------------------------------
Liabilities 746 844
----------------------------------------------------------------------------------------------------
Deferred tax liabilities 38 37
----------------------------------------------------------------------------------------------------
Total equity and liabilities 1,346 1,495
----------------------------------------------------------------------------------------------------
-- Total assets declined by(euro)149 million compared to December 31,
2001, of which(euro)76 million is due to exchange rate effects.
-- Half of the decline in noncurrent assets of (euro)71 million was due
to exchange rate translation differences, and half to depreciation and
amortization in excess of capital expenditures.
-- The reduction in inventories amounted to (euro)62 million, with
(euro)18 million resulting from exchange rate effects and (euro)44
million from successful inventory management measures.
-- Reduced sales revenue in the current fiscal year as well as increased
sales of receivables resulted in a decline in trade receivables of
(euro)54 million compared to December 31, 2001.
-- Net financial liabilities were reduced by(euro)73 million to(euro)454
million compared to December 31, 2001.
-- The equity ratio was 16% compared to 17% at the end of 2001, mainly
due to exchange rate effects.
Consolidated Statement of Changes in Equity ((euro)million)
----------------------------------------------------------------------------------------
(unaudited) 2002 2001
----------------------------------------------------------------------------------------
Balance at January 1 255 337
----------------------------------------------------------------------------------------
Capital increase 1 2
----------------------------------------------------------------------------------------
Net loss, net of minority interests -6 -34
----------------------------------------------------------------------------------------
Currency exchange differences and other -30 2
----------------------------------------------------------------------------------------
Balance at September 30 220 307
----------------------------------------------------------------------------------------
Consolidated Cash Flow Statement ((euro) million)
----------------------------------------------------------------------------------------------------------------
First Three Quarters First Three Quarters
(unaudited) 2002 2001
----------------------------------------------------------------------------------------------------------------
Profit from operations1 19.2 40.3
----------------------------------------------------------------------------------------------------------------
Depreciation and amortization 60.7 64.7
----------------------------------------------------------------------------------------------------------------
EBITDA 79.9 105.0
----------------------------------------------------------------------------------------------------------------
Decrease (increase) in working capital 74.4 -37.8
----------------------------------------------------------------------------------------------------------------
Operational cash flow 154.3 67.2
----------------------------------------------------------------------------------------------------------------
Payments related to antitrust proceedings -8.3 -18.6
----------------------------------------------------------------------------------------------------------------
Other operating cash uses -54.5 -21.7
----------------------------------------------------------------------------------------------------------------
Cash provided by operating activities 91.5 26.9
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Capital expenditures -32.1 -66.2
----------------------------------------------------------------------------------------------------------------
Other investing activities 10.3 7.0
----------------------------------------------------------------------------------------------------------------
Cash used in investing activities -21.8 -59.2
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Cash used in/provided by financing activities -44.7 34.0
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Effect of foreign exchange rate changes in cash -1.7 -
----------------------------------------------------------------------------------------------------------------
Net increase in cash and cash equivalents 23.3 1.7
----------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at beginning of the period 12.1 9.8
----------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of the period 35.4 11.5
----------------------------------------------------------------------------------------------------------------
1 Before antitrust charge
-- The Group generated EBITDA1 of(euro)80 million in the nine-month
period under review, after(euro)105 million in the comparable period
of the prior year.
-- Working capital2 was reduced by(euro)74 million during the nine-month
period under review after adjustment for exchange rate effects.
-- The Group was also able to increase operational cash flow3 by 130%
to(euro)154 million, compared to(euro)67 million in the prior-year
nine-month period.
-- Cash and cash equivalents at the end of the current period amounted to
(euro)35 million; this resulted in a free cash flow4 of (euro)70
million for the fiscal year-to-date, compared to (euro)-32 million for
the same prior-year period, an improvement of (euro)102 million.
-- At(euro)32 million, capital expenditures were around(euro)29 million
below depreciation and amortization ((euro)61 million) in the period
under review.
-- Net cash used in financing activities of(euro)45 million was used to
reduce financial liabilities.
1 EBITDA: earnings before interest, tax, depreciation and amortization on
noncurrent assets
2 Working capital: inventories plus trade receivables minus trade payables
3 Operational cash flow: EBITDA plus change in working capital
4 Free cash flow: net cash provided by operating activities minus net cash used
in investing activities
SGL CARBON AG
Head Office
Investor Relations
Rheingaustrasse 182
D-65203 Wiesbaden
Phone +49 (611) 60 29-100
Fax +49 (611) 60 29-101
e-mail cpc@sglcarbon.de
WWW.SGLCARBON.COM
Important note:
This presentation contains forward-looking statements as defined in the US
Private Securities Litigation Reform Act of 1995. It contains forward-looking
statements and information relating to sales and earnings figures, based on
currently available information. Actual future results and trends could differ
materially from those set forth in such statements due to various factors. Such
factors include unforeseeable alterations in electric steel production, the
possibility of changing economic and competitive conditions, changes in currency
rates, technological developments, unanticipated developments relating to
recently acquired businesses and Group companies, unforeseen difficulties
relating to investigations by the North American and European antitrust
authorities and the civil actions related to these investigations and other
risks and uncertainties, including those detailed in the Company's filings with
the US Securities and Exchange Commission. SGL Carbon does not intend to update
these forward-looking statements and does not assume any obligation to do so.
Sales Revenue & Profit from Operations by Quarter ((euro)million)
-----------------------------------------------------------------------------------------------------------------------------
2001 2002
-----------------------------------------------------------------------------------------------------------------------------
Sales revenue Q1 Q2 Q3 First Q4 Year Q1 Q2 Q3 First
Three Three
Quarters Quarters
-----------------------------------------------------------------------------------------------------------------------------
Carbon and Graphite 153.1 164.4 147.0 464.5 155.3 619.8 127.2 139.6 135.5 402.3
-----------------------------------------------------------------------------------------------------------------------------
Graphite 63.6 63.5 56.4 183.5 47.2 230.7 51.4 50.0 49.5 150.9
Specialties1
-----------------------------------------------------------------------------------------------------------------------------
Corrosion 48.7 51.4 63.0 163.1 72.7 235.8 45.0 47.1 59.3 151.4
Protection
-----------------------------------------------------------------------------------------------------------------------------
Established 265.4 279.3 266.4 811.1 275.2 1,086.3 223.6 236.7 244.3 704.6
Businesses1
-----------------------------------------------------------------------------------------------------------------------------
SGL Technologies1 34.6 36.5 30.1 101.2 33.9 135.1 36.4 40.2 38.8 115.4
-----------------------------------------------------------------------------------------------------------------------------
Other 0.4 0.6 1.7 2.7 9.2 11.9 1.0 0.2 0.7 1.9
-----------------------------------------------------------------------------------------------------------------------------
300.4 316.4 298.2 915.0 318.3 1,233.3 261.0 277.1 283.8 821.9
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
2001 2002
-----------------------------------------------------------------------------------------------------------------------------
Profit (loss) from Q1 Q2 Q3 First Q4 Year Q1 Q2 Q3 First
operations2 Three Three
Quarters Quarters
-----------------------------------------------------------------------------------------------------------------------------
Carbon and Graphite 22.8 26.5 14.8 64.1 14.8 78.9 11.7 12.3 18.1 42.1
-----------------------------------------------------------------------------------------------------------------------------
Graphite 5.8 6.0 6.6 18.4 3.9 22.3 1.8 1.1 0.7 3.6
Specialties1
-----------------------------------------------------------------------------------------------------------------------------
Corrosion 0.2 0.8 - 1.0 11.6 12.6 -1.9 1.9 - -
Protection
-----------------------------------------------------------------------------------------------------------------------------
Established 28.8 33.3 21.4 83.5 30.3 113.8 11.6 15.3 18.8 45.7
Businesses1
-----------------------------------------------------------------------------------------------------------------------------
SGL Technologies1 -9.8 -7.7 -9.6 -27.1 -6.6 -33.7 -4.6 -2.3 -2.8 -9.7
-----------------------------------------------------------------------------------------------------------------------------
Corporate Costs -5.4 -5.0 -5.7 -16.1 -5.3 -21.4 -6.0 -5.9 -4.9 -16.8
-----------------------------------------------------------------------------------------------------------------------------
13.6 20.6 6.1 40.3 18.4 58.7 1.0 7.1 11.1 19.2
-----------------------------------------------------------------------------------------------------------------------------
Consolidated Income Statements by Quarter ((euro) million)
--------------------------------------------------------------------------------------------------------------------------------
2001 2002
--------------------------------------------------------------------------------------------------------------------------------
Q1 Q2 Q3 First Q4 Year Q1 Q2 Q3 First
Three Three
Quarters Quarters
--------------------------------------------------------------------------------------------------------------------------------
Sales revenue 300.4 316.4 298.2 915.0 318.3 1,233.3 261.0 277.1 283.8 821.9
--------------------------------------------------------------------------------------------------------------------------------
Cost of sales -230.4 -237.3 -233.6 -701.3 -240.5 -941.8 -210.4 -216.4 -221.2 -648.0
--------------------------------------------------------------------------------------------------------------------------------
Gross profit 70.0 79.1 64.6 213.7 77.8 291.5 50.6 60.7 62.6 173.9
--------------------------------------------------------------------------------------------------------------------------------
Selling/administration/
research/other -56.4 -58.5 -58.5 -173.4 -59.4 -232.8 -49.6 -53.6 -51.5 -154.7
--------------------------------------------------------------------------------------------------------------------------------
Profit from operations2 13.6 20.6 6.1 40.3 18.4 58.7 1.0 7.1 11.1 19.2
--------------------------------------------------------------------------------------------------------------------------------
Antitrust charge - -35.0 - -35.0 - -35.0 - - - -
--------------------------------------------------------------------------------------------------------------------------------
Restructuring charge - - - - -41.0 -41.0 - - - -
--------------------------------------------------------------------------------------------------------------------------------
Profit (loss) from operations 13.6 -14.4 6.1 5.3 -22.6 -17.3 1.0 7.1 11.1 19.2
--------------------------------------------------------------------------------------------------------------------------------
Net financing costs -17.3 -16.3 1.4 -32.2 -16.3 -48.5 -6.3 -8.5 -7.4 -22.2
--------------------------------------------------------------------------------------------------------------------------------
Profit (loss) before tax -3.7 -30.7 7.5 -26.9 -38.9 -65.8 -5.3 -1.4 3.7 -3.0
--------------------------------------------------------------------------------------------------------------------------------
Income tax 1.3 -3.3 -4.8 -6.8 -22.4 -29.2 -4.0 -0.8 1.6 -3.2
--------------------------------------------------------------------------------------------------------------------------------
Net profit (loss) before -2.4 -34.0 2.7 -33.7 -61.3 -95.0 -9.3 -2.2 5.3 -6.2
minority interests
--------------------------------------------------------------------------------------------------------------------------------
1 2001 Business Area results have been restated to reclassify of the graphite
foils business (expanded graphite) from Graphite Specialties to SGL
Technologies
2 Before antitrust charge and restructuring charge
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SGL CARBON Aktiengesellschaft
Date: November 7, 2002 By: /s/ Robert J. Kohler
------------------------------
Name: Robert J. Koehler
Title: Chairman of the Board of Management
By: /s/ Dr. Bruno Toniolo
-----------------------------
Name: Dr. Bruno Toniolo
Title: Member of the Board of Management