SGL Carbon shares drop due to weaker demand in semiconductor and auto industries

Published 20/03/2025, 10:48
© Reuters.

Investing.com -- Shares in SGL Carbon, a German graphite electrode and carbon fiber manufacturer, fell by 14% to 3.95 euros in early European trade on Thursday.

The company attributes the decline to a slowdown in sales and earnings growth, driven by weaker demand in the semiconductor and automotive industries.

The company reported that its sales in 2024 totaled 1.03 billion euros ($1.12 billion), marking a slight decrease from the 1.09 billion euros recorded in 2023. Adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) also fell by 3.3% to 162.9 million euros.

SGL Carbon expects these challenges in the semiconductor and automotive sectors to persist into 2025. It anticipates that demand for its products will not pick up until the second half of the year at the earliest. The company projects its full-year group sales to be slightly below 2024 levels, with adjusted Ebitda estimated to be between 130 million euros and 150 million euros.

The company also reported a net loss of 80.3 million euros for the year 2024, a stark contrast to the profit of 41.0 million euros it posted in 2023.

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