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SGL Carbon Backs Net Loss Forecast For FY17; Sees Higher Sales - Quick Facts

Carbon products maker SGL Carbon SE (SGLFF.PK) Wednesday said it continues to expect fiscal 2017 consolidated net loss from continuing operations in the
mid-double-digit million range, roughly on the level of the previous year.

The forecast reflects last year's positive one-time effect from the sale of carbon fiber plant in the US. Also, the company will have to pay an early repayment penalty for the intended redemption of corporate bond this year.

According to the company, the net result is not yet expected to reflect our anticipated operational improvements this year.

Further, the company expects all material KPIs to improve in 2017. The firm is optimistic that both sales revenue and earnings will grow.

The company continues to expect sales revenue to increase in the high single-digit percentage range and group EBITDA and adjusted Group EBIT to increase
more than sales revenue, which will be attributable to volume growth and savings generated through CORE project.

The company also said it expects to continue to improve key balance sheet figures significantly by the beginning of 2018.

In October 2016, the company signed an agreement to sell graphite electrode business to the Japanese company Showa Denko, for a negotiated enterprise value of 350 million euros. The company is currently waiting for anti-trust approvals from the US, and expects this deal to be completed by mid-2017.

Further, the company said it wants to use the proceeds from the sale of Performance Products and the capital increase for the early repayment of corporate bond due in 2021, as well as to repay convertible bond due in 2018.

by RTT Staff Writer

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