WIESBADEN (dpa-AFX) - Carbon fiber specialist SGL Carbon is cautious about the current fiscal year due to further rising costs. Wages, for example, are likely to rise and energy and raw material prices will remain high, the company announced in Wiesbaden on Thursday. These costs could only be partially passed on to customers. For this reason, management expects profits to fall in 2023 in the worst-case scenario. The group describes 2023 as an investment and stabilization year.

Shares in the SDax-listed company fell by around 1.2 percent on Thursday morning. However, analysts also find words of praise: the forecast once again shows the resilience of the Group, Stifel analyst Andreas Heine. He emphasizes that the chemical industry is facing a challenging year.

For the current year, SGL is forecasting adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of between €160 million and €180 million. Analysts had expected an average of €165 million in their estimates. Sales are expected to be at the previous year's level - the expiry of a supply contract with an automotive customer and the sale of a business in the USA are likely to have a negative impact here. By 2027, SGL is targeting an improvement in the adjusted Ebitda margin of 18 to 19 percent, compared to 15.2 percent in 2022.

On a positive note, SGL Carbon highlighted that demand for specialty graphite products for high-temperature processes, for example in the semiconductor, solar and LED industries, will continue to grow. Corresponding parts would be needed in electromobility and in the expansion of renewable energies. To benefit even more from this development, the Group intends to further expand its production capacities in this area. To this end, management intends to invest a double-digit million euro sum in the current year.

In the past year, sales increased by almost 13 percent to 1.14 billion euros. The increase was due to volume effects and price increases, which offset higher raw material, energy and transport prices. As the Group has focused on higher-margin segments, SGL Carbon was also able to significantly increase its operating profit: adjusted Ebitda rose by 23.4 percent to 172.8 million euros. However, the Group failed to meet analysts' expectations. Below the line, consolidated earnings rose from 75.4 million to just under 127 million euros, also thanks to tax income./knd/nas/stk