GrafTech International Ltd. (NYSE:GTI) today announced financial results for the first quarter ended March 31, 2011.
2011 First Quarter Highlights
- Net sales increased to $306 million from $216 million in the first quarter of 2010. The increase in revenue was driven by improved demand in both of our business segments as well as growth in sales of $65 million related to the acquisitions of Seadrift Coke and our St. Marys facility.
- EBITDA* was $57 million versus $55 million in the first quarter of 2010. Excluding the elimination of $10 million in intercompany profit in inventory on sales of needle coke and $3 million in acquisition-related inventory step-up, EBITDA was $70 million for the quarter, representing our largest quarterly EBITDA in over two years.
- Net income was $27 million (including $10 million of purchase price accounting expenses related to the acquisitions), or $0.19 per diluted share, as compared to $35 million (including $4 million in currency gains on the remeasurement of intercompany loans), or $0.29 per diluted share, in the first quarter of 2010.
- As previously announced, on February 9, 2011, GrafTech acquired the business and assets of Micron Research Corporation, a privately held producer of super fine grain graphite, for $6.5 million.
- Net cash used in operating activities was $1 million, versus net cash provided by operating activities of $20 million in the first quarter of 2010. The decline year-over-year was primarily driven by a $55 million increase in working capital to support our growing sales. Also contributing to the increase in working capital was the addition of our three recently completed acquisitions, which were not part of our Company in the first quarter of 2010.
- Net debt* was $321 million at the end of the first quarter 2011. This compares to a year end 2010 net debt position of $288 million. We increased our debt primarily to fund planned capital expenditures to support growth and funding requirements related to the acquisition of Micron Research.
GrafTech Chief Executive Officer Craig Shular commented, “First quarter 2011 results benefited from improved demand year-over-year for both business segments and the incorporation of Seadrift and St. Marys into our consolidated results. First quarter 2011 EBITDA improved more than 25 percent year-over-year to $70 million, excluding special items related to the acquisitions. On a total year basis, we expect to deliver record sales and, per our guidance, our second best year in EBITDA performance.”