WIESBADEN (dpa-AFX) - SGL Group (SGLFF.PK) reported first-quarter consolidated net profit to shareholders of 32.2 million euros compared to a loss of 0.3 million euros, prior year. Pre-tax profit from continuing operations was 40.2 million euros compared to a loss of 5.1 million euros. Profit per share from continuing operations was 0.29 euros compared to a loss of 0.06 euros. The company noted that its first-quarter earnings were impacted by high positive one-time effects particularly relating to the full acquisition of former joint ventures with BMW Group and Benteler and the initial adoption of IFRS 15.
First-quarter recurring Group EBIT doubled to 20.5 million euros from 9.6 million euros due to improved earnings in both business units, a partially temporary effect from the initial adoption of IFRS 15 amounting to 5.6 million euros, as well as the proceeds of 3.9 million euros from a land sale. Without these two effects, recurring EBIT would have amounted to approximately 11 million euros, in line with expectations.
In the first quarter 2018, SGL Group increased its sales revenues by 21.8 percent, to 263.4 million euros from 216.3 million euros, prior year. The company said the slightly more than half of the sales increase was related to the effects of the full consolidation of the former joint ventures with BMW (SGL ACF) and Benteler (Benteler-SGL) and the initial adoption of IFRS 15.
SGL Group still expects sales to increase by approximately 10 percent for fiscal 2018. Adjusted for currency and structural changes, this corresponds to growth in the mid to high single-digit percentage range. Group recurring EBIT should slightly outpace sales growth, driven by the positive effects of a noticeable increase in volume demand, the additional contribution to earnings resulting from the full consolidation of the former joint venture SGL ACF, and cost savings. Due to the in total positive one-time effects, SGL Group confirmed its slightly increased guidance from April 24, 2018, for net result from continuing operations reaching a low double digit million euro amount, while the prior guidance was aiming for a black zero.
Copyright RTT News/dpa-AFX