SGL Carbon Composites Sales Revenue Declines
SGL Carbon of Germany is one of the world's leading manufacturers of carbon graphite materials and related products. SGL Group covers the complete business chain from raw silk to carbon fiber, fabrics and prepregs to finished CFRP components.
In SGL Carbon's CFM (Composites-Fibers & Materials) business unit, the impact of the COVID-19 pandemic has been clearly seen since the second quarter. From April 2020 to July 2020, SGL Carbon`s sales fell by approximately 22% year-on-year. Based on the first half of the year, CFM`s sales fell by approximately 15% to 185.7 million euros (last year). In the same period, it was 219.4 million euros).
Since the end of 2019, as part of revenue improvement measures, the largest decline in market share has been in the textile fiber market, where two acrylic fiber production lines have been idled. The decline caused by the new crown epidemic is mainly concentrated in the automotive and aerospace markets. On the contrary, the business of the wind energy industry has doubled, so the development is better than initially expected. Industrial applications remain relatively stable and close to the previous year's level. For the CFM business unit, SGL Carbon expects that its sales revenue will drop by approximately 10% in 2020.
Hexion Inc.'s net sales drop by 30%
Recently, Hexion Inc. released its results for the second quarter ending June 30, 2020. Net sales for the quarter ended June 30, 2020 totaled US$628 million, a 30% decrease from US$892 million in the same period last year. Driven by the global economic impact of COVID-19 in various industries and markets, the decline in sales in the second quarter of 2020 was the main reason for the decline in net sales, and the decline in sales had a negative impact on net sales of US$206 million.
In January 2020, the Hexion report pointed out that the company will adjust around two growth platforms: adhesives, coatings and composites. The adhesives sector is organized around construction adhesives, industrial adhesives, and intermediates and derivatives, while the coatings and composites sector is organized around composites, performance coatings and basic chemicals.
The decline in sales in the second quarter of 2020 is mainly related to the decrease in the company's North American resin business due to weak demand, and the decrease in basic epoxy and phenolic resin business due to the overall weakness of the automotive and construction industries. Compared with the second quarter of 2019, the depreciation of various foreign currencies against the U.S. dollar in the second quarter of 2020, and foreign currency translation had a negative impact on net sales of $17 million. The pricing mechanism has caused a negative impact of US$41 million on sales, mainly due to the decline in raw material prices that have been passed on to many corporate customers through contracts, and the weak market conditions for basic epoxy resins.
Core Molding Technologies has a net loss of US$2.3 million
Core Molding Technologies, Inc. was established in 1996. The company mainly deals in reinforced plastic products, combining glass fiber/carbon fiber with resin through a compression molding process. Recently, Core Moulding Technologies, Inc. reported its results for the second quarter ended June 30, 2020. Affected by COVID-19, many of the company's customers suspended operations during the shutdown, resulting in a net loss of $2.3 million in the second quarter of 2020.
Net sales in the second quarter of 2020 decreased by USD 43.4 million compared with the same period last year, a decrease of 53.5%. The decline in sales in the second quarter of 2020 was due to reduced customer demand due to the impact of COVID-19. For the six months ended June 30, 2020, net sales decreased by USD 51.7 million or 33.7% compared to the same period last year.