From the Sector

• Sales increase of 10.7% to €549.8 million in the first half of 2022
• EBITDApre improves by 22.6%, higher than the increase in sales, to €87.9 million
• Positive business development, price increases and strict cost management led to forecast increase on June 7, 2022

Despite uncertain general conditions in the first six months 2022, SGL Carbon's business model is proving its resilience. After €270.9 million in Q1 2022, SGL Carbon was able to increase sales to €278.9 million in Q2. Accordingly, sales for the first half of 2022 amount to €549.8 million, which corresponds to a sales plus of €53.1 million or 10.7% compared to the same period of the previous year.

The increase in sales was driven in particular by customers in the semiconductor industry and growth in the industrial applications market segment. Demand from the automotive and chemical industries was also encouraging.

EBITDApre, as one of the Group's key performance indicators, improved by €16.2 million (+22.6%) to €87.9 million (H1 2021: €71.7 million). Consequently, the EBITDApre margin increased from 14.4% to 16.0%. In addition to the higher utilization of production capacities due to higher sales, the improvement in earnings was also driven by the largely successful passing-on of higher raw material and energy costs to customers as well as savings from the transformation program.

EBITDApre does not include positive one-off effects and non-recurring items totaling €10.6 million (H1 2021: minus €5.2 million). As a result, EBIT in H1 2022 increased significantly from €38.3 million to €69.6 million. Taking into account the financial result of minus €16.6 million (H1 2021: minus €14.0 million), consolidated net income for the first six months of the current fiscal year amounted to €48.8 million, compared to €17.9 million in the prior-year period.

Business Units
With an increase in sales of €22.2 million (+10.0%) to €243.4 million, the Graphite Solutions (GS) business unit made a major contribution to SGL Carbon’s sales growth. In particular, continued high demand from customers in the semiconductor sector, which represents approximately one third of the segment's sales, led to the positive business development in GS. As a result of the predominantly high-margin business, EBITDApre at GS improved by 22.7% to €54.0 million.

The Process Technology (PT) business unit benefited from the good order situation in the chemical industry in H1 2022 and consequently increased sales to €49.2 million (H1 2021: € 40.8 million). EBITDApre also improved from €0.1 million in the prior year’s first half to €4.1 million in H1 2022.

The Carbon Fibers (CF) business unit benefited in the 1st half 2022 from final deliveries to a major automotive manufacturer whose contract expired as scheduled on June 30, 2022. Segment sales increased by 5.8% year-on-year to €176.0 million. In contrast, EBITDApre at CF decreased by €4.2 million to €28.2 million despite the good order situation and successful price increases. It should be noted that CF was impacted by a special effect from energy derivatives for price hedging in the amount of €9.2 million in the first quarter of 2022.

With an increase in sales of 15.6% to €69.6 million, the Composite Solutions (CS) business unit continued its upward trend. The specialist for customized component solutions for the automotive industry improved its EBITDApre from €5.7 million in the first half of 2021 to the current €9.7 million, based in particular on price and volume effects.

Balance sheet figures
Working capital rose by 11.7% to €381.1 million as of June 30, 2022. This was mainly due to higher inventories (€ +73.9 million) and an offsetting increase in trade payables (€ +29.0 million). A targeted build-up of inventories in critical raw materials due to disruptions in transport routes and the recent Covid lockdown in Shanghai were some of the reasons for the higher inventory levels.

SGL Carbon's net financial debt slightly increased by €6.6 million to €212.9 million as of June 30, 2022 (Dec. 31, 2021: €206.3 million), which was due to a lower free cash flow of €7.5 million for H1 2022 (H1 2021: €56.6 million).

Guidance increase
On June 7, 2022, SGL Carbon raised its sales and earnings guidance for fiscal year 2022. The company now expects sales of €1.1 billion (previously: around €1.0 billion) and EBITDApre of €130 - 150 million (previously: €110 - 130 million). Based on the pleasing business development, realized price increases, a stringent cost management, and taking into account the currently known risks, SGL’s management expects to achieve the earnings forecast for 2022 at the upper end of the stated range.

The FACHPACK in Nuremberg ranks among the most important packaging industry gatherings. From 27 to 29 September 2022, Sappi will be presenting its latest products and solutions for functional paper packaging, flexible packaging papers, label papers, containerboard and paperboard. The company is focusing its efforts on sustainable, recyclable and innovative solutions.

• Wide range of barrier papers in the market for sustainable and recyclable packaging solutions
• High-impact brand presence in corrugated board packaging thanks to Fusion Nature Plus in combination with Fusion Topliner
• Parade Label Pro wet-glue label paper for an efficient operation and an excellent visual impression

Wide range of barrier papers
Sappi’s ultimate goal as a specialist in barrier papers is to replace non-recyclable aluminium and plastic multi-layer laminates through the introduction of truly sustainable alternatives that meet all market requirements in terms of performance and recycling. Sappi is continuously expanding its portfolio of barrier papers. At the show, Sappi will be showcasing several examples of food and non-food applications using these barrier papers.

A smooth surface and a high degree of whiteness: Parade Label Pro
Sappi will also be presenting its new, non-wet-strength wet-glue label paper Parade Label Pro – featuring samples from all over the world. This glossy, double-coated quality paper offers a smooth surface plus a high degree of whiteness. It’s suitable for numerous label and flexible packaging applications, such as labels for disposable bottles, food and non-food containers as well as wrappers for a variety of products. It can be printed in offset, flexo and gravure, and finished with hot foil and blind embossing, for example.

Brand presentation that appeals to the senses
“For manufacturers of branded goods, it is becoming increasingly important to convey brand values and product characteristics in a way that is emotionally appealing and that really sets the stage,” explains Luis Mata, Sales Director Packaging of Sappi Europe. At the FACHPACK, Sappi will also be presenting its containerboard products for corrugated board applications, which, with their brilliant colour reproduction, enhance on-shelf product impact and ensure real brand differentiation.

Sappi’s popular Algro Design paperboard portfolio also allows the design scope and leeway to communicate brand values in an emotionally appealing way.

• Sustainability Report 2021 combines financial and non-financial performance indicators
• 2011-2021: 60% reduction in greenhouse gas emissions per metric ton produced. 51.7% renewable source energy achieved
• ESG criteria (environmental impact (E), social values (S), organizational governance (G)) determine sustainability strategy

The new RadiciGroup Sustainability Report has been published. With the goal of continuous improvement, the 2021 report has a broader reporting boundary compared to prior years and takes into consideration all the Group companies, including sales and service companies. Over 30 sites located across Asia, North America, South America and Europe have provided their 2021 data on economic, social and environmental performance.

Not only indicators of a financial nature but also measures of environmental impact (E), social values (S) and good organizational governance (G): the latter so-called ESG criteria have become a priority for RadiciGroup, which is preparing for the new European Union non-financial reporting directive in order to contribute to the transition towards a fully sustainable economic system and increase the value of its companies.

On the environmental front, the themes of climate change and decarbonization are RadiciGroup priorities and part of a policy aimed at the uncoupling of growth and resource usage. The Group undertakes to lower emissions from production and choose limited-impact energy sources. This commitment is confirmed by the numbers: in the 2011-2021 period, total emissions per metric ton produced were reduced by 60%, while renewable source energy used by the Group reached 51.7%. Specific investments to decrease environmental impact are ongoing: in 2021, EUR 3.1 million were allocated to introduce best available techniques and improve emissions abatement and energy efficiency.

RadiciGroup promotes professional growth by valuing competence and investment in training: Group training hours once again rose after the pandemic period from 36,000 hours in 2020 to 46,000 hours in 2021. The training method was often a hybrid, taking advantage of aspects experimented with during the pandemic, that is, less traveling and use of facilities in favour of higher groupwide attendance, without the need for participation limits. Fifty-five percent of total training hours was dedicated to health and safety, which has yielded positive results based on the related indicators.

Angelo Radici, president of RadiciGroup: “Today, the United Nations 2030 Agenda for Sustainable Development is our main guideline on sustainability issues. It shows us an ambitious scenario and urges us to confront a multitude of challenges that affect our enterprise from every point of view. We try to be quick to react and tenacious, staying faithful to our roots and our style, but expanding our perspective to become increasingly more competitive and proactive in the businesses we are engaged in. From the viewpoint of achieving less environmental impact in the future, we propose to be an enabler and facilitator for our stakeholders on themes such as the circular economy, where we see ourselves as protagonists in ecodesign and recycling, as well as innovation, which we put at the service of anyone who is processing and using our products, so as to offer real sustainability solutions together.”

ITM 2022 hosted textile technology leaders in Istanbul for 5 days, presenting the latest innovations in every field of textile from weaving, knitting, yarn, digital printing, finishing to denim. The ITM 2022 Exhibition, where a business volume of over 1.5 billion Euros was created in 5 days, accelerated the Turkish and world economy.

Organized by the partnership of Teknik Fairs Inc. and Tüyap Tüm Fuarcılık Yapım Inc., ITM 2022- International Textile Machinery Exhibition was held at Tüyap Fair and Congress Center between 14-18 June.  ITM 2022 Exhibition, attended by 1280 companies and company representatives from 65 countries, was visited by 64,500 people from 102 countries, consisting of 44% international and 56% domestic visitors.

Turkey became a Supply Center at the ITM 2022 Exhibition
The successful sales graph achieved at the ITM 2022 Exhibition proved that the difficulties experienced due to the pandemic for the last 3 years have been left behind. Turkey has become a supply center for European, Middle Eastern and African countries, especially with the disruption of the supply chain in Far East countries, including China. The profile of the professional visitors visiting the ITM 2022 Exhibition revealed that in the new world order that has shifted after the pandemic, the trade network has also changed hands and new players have appeared on the scene. The fact that manufacturers from all over the world such as Andorra, Angola, Honduras, Peru, Seychelles, Sierra Leone, Brazil, Sri Lanka, Tanzania, Egypt, Iran, and Oman purchased a large number of machinery and signed collaborations at the ITM 2022 Exhibition has proven this.

Exhibitors of ITM 2022 enlarge their stands for ITM 2024
Many company officials, who stated that they have achieved a sales graphic far above their expectations starting from the very first day of the ITM 2022 Exhibition and that they have hosted visitors from all over the world, decided to enlarge their stands at the ITM 2024 Exhibition. During the exhibition, companies visited the registration application points and applied for ITM 2024 participation.

The next meeting of the ITM and HIGHTEX Exhibitions will be held in Istanbul between 4-8 June 2024.

ITM 2022, the first major international textile machinery exhibition to be held in the world after a 3-year hiatus during the pandemic process, is getting ready to open its doors. Bringing the leading brands of textile technologies together in Istanbul, ITM 2022 will host world launches and numerous collaborations for 5 days.

ITM 2022- International Textile Machinery Exhibition, organized in partnership with Teknik Fairs Inc. and Tüyap Tüm Fuarcılık Yapım Inc, will open its doors at Tüyap Fair and Congress Center between 14-18 June. For ITM 2022, which will be held in 12 halls on an area of 120,000 m2; hums of 1280 participating companies from more than 40 countries continues. Tüyap Fairground, where thousands of people sweat for stand setups, is getting ready for the big meeting. ITM 2022, where all halls have reached 100% occupancy rate and 1280 exhibitor companies are located, will also attract attention with the stand areas and machine parks that the manufacturers have enlarged compared to the previous exhibitions.

Companies will showcase their state-of-the-art technologies for the first time at ITM 2022
Many companies that focus on product development and new productions under pandemic conditions will have the opportunity to introduce their products to their customers for the first time in 3 years at the ITM 2022 Exhibition. Company owners, managers, employees and sector representatives visiting the exhibition will have the opportunity to see the latest technological innovations for the first time and witness their world launches.

Sector representatives, who will open up new horizons in their minds about textile technologies, will sign new products by transforming the extraordinary and original ideas that they have obtained at the ITM 2022 Exhibition into design. Participating companies will also update their machines in line with the demands and needs from the sector representatives and lead the development of new technologies.

Significant Contribution to Exports Aimed with Machine Sales and New Investment Decisions
The textile industry, which is among the locomotive sectors in Turkey's exports, has made a significant contribution to the Turkish economy, especially with the performance increase it has achieved during the pandemic period. Having achieved an increase of up to 40 percent in its exports of textiles and raw materials, Turkey also managed to increase its exports of medical textiles, technical textiles and home textiles. The industry will further increase this success with the collaborations to be realized at ITM 2022. The textile machinery industry will gain great momentum with the machinery sales and new investment decisions to be made at the exhibition.

ITM 2022, which will be attended by many domestic and foreign companies and visited by thousands of people, will be an organization where both domestic and foreign companies will make sales amounting to millions of Euros and many business connections will be realized.

Intense Interest from Trade Delegations
Trade delegations from dozens of countries are requesting to attend the ITM 2022 Exhibition, which is included in the ‘Domestic Organizations Covered by State Incentives’ list by the Ministry of Commerce. Bangladesh, India, Iran, Serbia, Czech Republic, Pakistan, Indonesia, Ethiopia, Malaysia, Mexico, Egypt and Vietnam are among the countries that requested procurement delegations. The intense application of visitors to consulates and commercial attachés from all over the world clearly reveals that ITM 2020 will host a large number of visitors.

ITM 2022 Exhibition Prepares to Break Both Exhibitor and Visitor Records
Company owners, company representatives and visitors left the 2018 edition of the ITM Exhibition very satisfied. ITM 2018 Exhibition, attended by 1150 companies and company representatives from 64 countries and visited by approximately 60 thousand people from 94 countries made a significant contribution to the export records of the textile industry that year. At the ITM 2022; It is getting ready to break new records with the number of participants and visitors coming from Turkey and abroad.

Technical Textiles and Nonwovens Industry Will Meet at HIGHTEX 2022 Exhibition
On the other hand, HIGHTEX 2022 Exhibition, which will be held simultaneously with the ITM 2022 Exhibition, will be an exhibition where Nonwoven products, raw materials used in their production and the state-of-the-art technologies will be exhibited. HIGHTEX 2022 Exhibition, which is the first and only in its field in Turkey, will host a record number of participants and visitors in parallel with the increase in demand for technical textiles. At the HIGHTEX 2022 Exhibition, companies operating in many sectors, from medical textiles to hygienic textiles, from agricultural textiles to geotextiles, will exhibit their latest products and production technologies. Nonwoven manufacturers will come together with the global players of the sector and have the opportunity to both invest in technology and introduce their newest products.

Based on the good business development in all four Business Units as well as the mostly successful passing on of increased costs for raw materials, energy and transport to customers, the Board of Management of SGL Carbon SE expects to exceed the given guidance for the fiscal year 2022. Accordingly, SGL Carbon SE is increasing its sales and earnings guidance for fiscal year 2022.

The Company expects to exceed the upper end of the stated range of its Group EBITDApre (earnings before interest, taxes and depreciation adjusted by non-recurring items and one-time effects) guidance for the fiscal year 2022 of EUR 110 - 130 million and is raising its EBITDApre guidance for 2022 to EUR 130 - 150 million. Correspondingly, EBITpre1 (earnings before interest and tax adjusted by non-recurring items and one-time effects) is now forecasted to be between EUR 70 - 90 million (previously: EUR 50 - 70 million). The sales guidance is also raised to around EUR 1.1 billion for the current fiscal year, originally expected to be at the level of the previous year (EUR 1,007.0 million).

In line with the development of earnings, the forecast for return on capital employed (ROCE) of originally 5% - 7% is raised to 7% - 9%. The expectations for free cash flow remain unaffected by the forecast increase. Free cash flow is still expected to be significantly lower in 2022 than in the previous year (previous year: EUR 111.5 million).

The new forecast for fiscal 2022 has been drawn up on the basis of the prevailing market environment and assumes no deterioration in conditions, in particular due to the war in Ukraine and its consequences for the global economy. In particular, it is assumed that sufficient electricity and gas will be available and production lines will remain in operation. The communicated medium-term targets up to 2025 remain unaffected by the forecast adjustment.

SGL Carbon will publish its 2022 half-year figures as planned on August 4, 2022.

Focus on eccentric screw pumps and pumps for shear-sensitive materials

Improved productivity and increased lifespan and tailored solutions also for the most demanding applications within the chemicals and plastics industries and in PUR applications – these are the convincing arguments with which Oerlikon Barmag is showcasing its precision metering pumps at this year’s ACHEMA between August 22 and 26, 2022 in Frankfurt. The focus is on the new pump for shear-sensitive conveying media and the new eccentric screw pump.

Eccentric screw pumps – robust all-rounders convey any medium
The requirements for pumps are considerable, as the demand for customized solutions for increasingly complex processes is rising. This is particularly true for Oerlikon Barmag’s new eccentric screw pump range. High wear-resistance, increased durability and robust operation – the new pump is tailor-made for conveying highly-filled, high-viscosity and abrasive media, such as filled adhesives, filled silicones and filled casting compounds, for example. The is the multi-stage seal system, which considerably increases the pump’s lifespan. The upstream shaft sealing ring protects the slide ring seal against excessively-fast wear caused by challenging media. In turn, the optimum alignment of the drive shaft – ball bearing-supported and centrally-guided through the shaft sealing ring – prevents any metal debris caused by friction and hence ensures considerably greater durability. Producers benefit from considerably greater productivity, as the pumps’ maintenance intervals and hence machine downtimes are significantly reduced.

New pump for shear-sensitive materials
For increasingly complex customer-specific process solutions, Oerlikon Barmag is now expanding its GA series, developed especially for the challenging conveying of high-viscosity media, to include the GAB51F for shear-sensitive conveying media. The newly-developed pump with its viscosity range of max. 300 Pas is tailored to conveying high-viscosity, shear-sensitive materials such as adhesives and silicones, for example. “The shear forces impacting the medium within the pump are reduced to a minimum as a result of a specially geometry”, explains Thorsten Wagener, Senior Sales Manager within the Pump Construction business unit. The material is conveyed through the pump in an as gentle and low-pulsation manner as possible and metered precisely at the outlet – ensuring it retains its characteristic properties.

High-speed metering pump with sealed product space
The high-speed metering pump has been especially developed for metering poorly-lubricating media. Here, the main benefit is the sealed product space, which extends the pump’s lifespan considerably. The space that comes into contact with the media is limited to the area around the gears. “As a result, the high-speed pump is particularly suited for applications in the chemicals industry, which frequently involve aggressive acids”, comments Thorsten Wagener.

GM series for low-viscosity media
The pumps in the GM and GA series provide precision metering with low-pulsation feeding of the conveying medium. The multi-stage GM pump conveys low-viscosity media (i.e. 250 bar, 100 mPas) even under high pressure and in the most challenging conditions. The square design from the proven GM series is the standard pump for many metering tasks. The development of the multi-stage pump expands the applications range for the GM series considerably. The round 2-stage GM pump has been developed especially for use in high-pressure technology. It masters the particular challenge of conveying small throughputs with low viscosities. The pump is perfect for 0.05 through 20 cm³/rev feed sizes and is excellently suited for use in high-pressure machines for PUR molded parts, foam slab stock, refrigeration unit insulations and sandwich panels, for example.

GA series pumps for high-viscosity media
The Oerlikon Barmag GA range has been especially developed for the challenging conveying of media with higher viscosities. The GA series pumps are available for conveying volumes of between 1.25 and -30 cm³/rev (0.6-144 l/h). They have been designed for pressures of up to 200 bar, for viscosities of up to 1.500 Pas as well as for temperatures of up to max. 225 °C. With this range of pumps, Oerlikon Barmag offers its customers tailor-made solutions for many technical processes in which high-precision and even metering is of paramount importance.

The drum pump – conveying and metering using a single unit
With the drum pump, the Oerlikon Barmag pump specialists have created a pump designed specifically for conveying and metering high-viscosity materials such as adhesives, silicones and other high-viscosity materials from drums and other large containers and for pressures of up to 250 bar. Its special features not only include the fact that it removes high-viscosity materials from the drum, but that it also meters the medium directly without any additional interim stops.

• Exceptionally high order backlog and sustained strong demand
• Supply chain bottlenecks, COVID lockdown in China and significant cost increases
• Takeover of winding machine business leads to additional costs
• Sales and earnings adversely impacted in first half-year
• Considerably improved market position

Despite an exceptionally high order backlog and sustained strong demand, Rieter’s business situation in the first half of 2022 is characterized by the well-known supply chain bottlenecks, the repercussions of the COVID lockdown in China and the significant increases in material and transportation costs.

Further costs are added in connection with the takeover of the automatic winding business as of April 1, 2022.

These factors are adversely impacting both sales and earnings.

Rieter expects significantly higher sales in the first half of 2022 compared to the prior-year period (first half of 2021: CHF 400.5 million). Rieter anticipates a loss at the EBIT and net result level in the first half of 2022 (first half of 2021: EBIT CHF 9.0 million, net result: CHF 5.3 million).
The company is working intensively on the implementation of measures to minimize the impact of the supply chain bottlenecks, the COVID lockdown in China and the cost increases. The implemented price increases have a delayed effect, particularly in the machinery business. The integration of the automatic winding business is proceeding according to plan.

As soon as the situation in the sourcing markets has normalized, Rieter expects to benefit from the exceptionally high order backlog and the considerably improved market position as a result of the takeover of the automatic winding business as well as Accotex and Temco.
Rieter will provide a detailed report on the business results of the first half of 2022 in July 2022.

Computerized knitting machine manufacturer SHIMA SEIKI MFG., LTD. will participate in the SIMATEX exhibition in Buenos Aires, Argentina from 30th of May - 2nd of June 2022.

SHIMA SEIKI will exhibit a wide range of its products, including proposals in seam-free WHOLEGARMENT® knitting technology that offers an alternative to labor-intensive manufacturing in the South American market. Three MACH2VS machines, capable of knitting WHOLEGARMENT® knitwear using every other needle, will be shown in 12, 16 and 18 gauge configurations. The N.SVR workhorse series improves on the SVR series, resetting the industry benchmark for shaped knitting. The N.SVR123SP featuring a special loop presser bed that can produce hybrid inlay fabrics with both knit and weave characteristics. Shown in 18 gauge at the SHIMA SEIKI booth, N.SVR123SP will also feature the special i-Plating option, capable of alternating yarn colors in any pattern, producing jacquard-like designs using plain jersey stitch for even greater diversity in knit design. N.SSR112 improves on the SSR series and continues to offer industry-leading technology in an economical yet reliable package made in Japan.

Demonstrations will be performed on SHIMA SEIKI's SDS®-ONE APEX4 design system. At the core of the company’s “Total Fashion System” concept, SDS®-ONE APEX4 provides comprehensive support throughout the production supply chain, integrating production into one smooth and efficient workflow from yarn development, product planning and design, to production and even sales promotion. Especially effective is the way SDS®-ONE APEX4 improves on the design evaluation process with its ultra-realistic simulation capability, whereby virtual samples minimize the need for actual sample-making. This realizes significant savings in time, cost and material, contributing to sustainable manufacturing.

Montalvo, an international specialist in Web Tension Control and Web Handling, publishes an article educating users on how to troubleshoot and test Load Cells. Load Cells play an integral role in measuring the Web Tension throughout the process, and as such, they must be accurate and function properly at all times. Furthermore, they are required to perform in every environment, which, at times, can present numerous challenges to their functionality, and thus knowing how to troubleshoot Loads Cells could shorten machine downtime. In this brief article, Montalvo explains why Load Cells fail and provides four ways to troubleshoot, diagnose and solve any missed performance features.  
 
Doug Brockelbank, Director of Technical Sales and Service, says, “Providing high-quality products is one thing; but providing technical support 5, 10, and even 20 years after the products were installed is entirely different. Montalvo’s technical support and services are one of our known key differentiators in the market, and we pride ourselves on it. Our Load Cells are designed to work in the roughest environments without any difficulties. But as rare as it is, Load Cells can start to miss perform, and in this case, our customers know that Montalvo is here for them. The goal of our internal sales support and technical services team is to provide our customers with the support they require, whether that be videos, technical articles, or in-person or over-the-phone support.