SGL Carbon Shares Slump After Profit Warning: Frankfurt Mover
SGL Carbon SE (SGL) fell to a two-year low after the carbon-fiber maker reduced its profit outlook because of a “slow start” to the year, particularly for its graphite-materials and carbon-fiber units.
SGL, partly owned by Bayerische Motoren Werke AG (BMW), dropped as much as 8.3 percent to 27.51 euros in Frankfurt, the lowest intraday price since February 2011. The stock was down 5.5 percent at 28.35 euros as of 11:46 a.m., taking the decline to 19 percent in 12 months. The volume of shares traded was more than six times the three-month daily average.
Earnings before interest, taxes, depreciation and amortization will be 20 percent to 25 percent lower than the 240 million euros ($313 million) before write-offs in 2012, the Wiesbaden, Germany-based company said in a statement. It previously expected a 10 percent to 15 percent decline.
“The original forecast was not particularly positive, so cutting it even further is naturally exceptional,” Ulle Woerner, a Stuttgart, Germany-based analyst at Landesbank Baden- Wuerttemberg, said by telephone. “There are negatives in so many segments right now, with almost no positives. You couldn’t pin it to declines in one industry.”
Of 19 analysts surveyed by Bloomberg, 15, including Woerner, have sell recommendations on the stock and four say hold.
First-quarter Ebitda is forecast at 32 million euros to 35 million euros, and there is “increasing uncertainty about the business recovery” in the second half of the year, SGL Carbon said today.
SGL, which has a joint venture with BMW to make carbon- fiber materials for a line of electric-powered cars, also counts Volkswagen AG (VOW) among its major shareholders.
The company makes about 16 percent of sales with its unprofitable division for carbon fibers and composite materials used in airplanes and rotor blades for wind power generation. Its biggest unit, which accounts for about half of the revenue, makes electrodes for the steel industry and cathodes for aluminum makers.
European car sales are set to reach a 20-year low after German concerns over the debt crisis sent registrations there plunging 17 percent last month. Registrations across Europe fell 10 percent to 1.35 million vehicles in March, the 18th consecutive decline, the European Automobile Manufacturers’ Association, or ACEA, said yesterday.
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