- Net sales increased 26 percent to $320 million from $255 million in the second quarter of 2010.
- EBITDA* improved to $60 million versus $49 million in the second quarter of 2010. Current quarter EBITDA reflects the elimination of $5 million in Seadrift profits on intercompany needle coke sales, which are not recognized until a finished electrode is sold. We also recognized the final $2 million of cost associated with acquisition-related inventory step-up. Excluding these items, the operations drove $67 million of EBITDA.
- Net income was $29 million (which included a $9 million charge, or $7 million after tax, of purchase price accounting impact related to the acquisitions of Seadrift Coke, St. Marys and Micron Research), or $0.20 per diluted share, as compared to $41 million (which included $9 million in currency gains on the remeasurement of intercompany loans and $7 million in acquisition expenses), or $0.34 per diluted share, in the second quarter of 2010.
- Net cash used in operating activities was $17 million, versus a use of $7 million in the second quarter of 2010. The $10 million year-over-year change was primarily driven by an increase in working capital to support our growing sales and requirements for the three acquisitions.
- Net debt* was $375 million at the end of the second quarter 2011, versus net debt of $321 million at the end of the first quarter. Net debt increased primarily to fund planned capital expenditures to support growth and higher working capital requirements due to increased sales.
- The integration of Seadrift Coke, St. Marys and Micron Research has progressed very nicely and is expected to be largely complete by the end of the third quarter of 2011. Synergies and targeted EBITDA contributions of $90 million from these acquisitions are tracking as planned. Following these acquisitions, we have a solid capital structure, incurring just $3 million in cash interest payments in the first half of 2011.
- In June 2011, GrafTech was awarded the prestigious R&D 100 Award for our new product line, SS1500, a graphite heat spreader that enables thinner product design and increased functionality in advanced electronics.
- In July 2011, GrafTech was selected to be a charter member in the Carbon Fiber Composites Consortium (CFCC) organized by Oak Ridge National Laboratory. The CFCC has been formed to develop the supply chain and manufacturing expertise for the production of low-cost carbon fibers in North America.
- GrafTech has a long history in carbon fibers and is a recognized global leader in graphite material science. In 1956, high performance carbon fibers were first developed at GrafTech’s global research and development center in Parma, Ohio. As a result of this pioneering work, our research and development center was recognized in 2003 as a National Historic Chemical Landmark from the American Chemical Society.
- Over the past several years, GrafTech has continued to devote research and development resources to develop low-cost carbon fibers.
GrafTech Reports Second Quarter 2011 Results
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