SGL shares slump as CEO quits, earnings decline
15/08/2019 08:04
FRANKFURT, Aug 15 (Reuters) - Shares in Germany's SGL Group
SGCG.DE were down 14.5% in early trade after the maker of
carbon fibres for auto parts said its chief executive would quit
and its earnings prospects for the year had worsened.
The company, in which BMW BMWG.DE investor Susanne Klatten
owns 28%, said late on Wednesday it expected adjusted operating
profit of about 10 million euros ($11 million), down from
previous guidance of about 65 million. urn:newsml:reuters.com:*:nASP0015MP
Business in July at its Composites – Fibers & Materials
(CFM) unit fell significantly below its expectations, SGL said,
adding that it discovered "erroneous planning assumptions" in a
large order for carbon fibres that go into rotor blades for wind
energy.
CEO Juergen Koehler would step down at the end of the month
with Klatten, head of the non-executive supervisory board,
showing "complete respect and understanding for this decision",
SGL said, without naming a successor.
Carmakers BMW and Volkswagen VOWG_p.DE hold smaller stakes
in SGL. They tussled for control of the company in 2011 in
anticipation that carbon fibre-reinforced parts would be used
more widely in electric vehicles but the business never lived up
to expectations.
($1 = 0.8969 euros)
(Reporting by Ludwig Burger; editing by John Stonestreet)
((ludwig.burger@thomsonreuters.com; +49 69 7565 1311; Reuters
Messaging: ludwig.burger.thomsonreuters.com@reuters.net))