GrafTech International Ltd. (NYSE:GTI) today announced financial results for the second quarter ended June 30, 2013.
2013 Second Quarter Review
- Net sales were $301 million, a decrease of 5 percent, versus $316 million in the second quarter of 2012.
- Industrial Materials revenue was $231 million, a decrease of 12 percent year-over-year.
- Engineered Solutions revenue was $70 million, an increase of 31 percent year-over-year.
- EBITDA * was $40 million as compared to $67 million in the second quarter of 2012. The decline was largely driven by lower realized pricing in our Industrial Materials segment, partly offset by improved profitability in our Engineered Solutions segment.
- Net income was $4 million or $0.03 per diluted share versus $42 million or $0.29 per diluted share in the same period of the prior year. The second quarter of 2012 included a $10 million non-cash benefit of discrete tax items. Excluding the non-cash tax benefit, second quarter 2012 net income was $32 million, or $0.22 per diluted share.
- Net cash used in operating activities was $6 million versus $16 million in the second quarter of 2012.
- Net debt * was $592 million as compared to $554 million at the end of 2012. The increase in net debt partially reflects higher inventories to support increased sales volumes in the second half of the year.
Craig Shular, Chief Executive Officer of GrafTech, commented, "Our team delivered second quarter results in line with expectations, in spite of a very challenging operating environment. Record sales in our Engineered Solutions segment and proactive cost management across the Company positively impacted these results. We expect overhead expense ** to be approximately $135 million this year as compared to $155 million in 2012."
Industrial Materials SegmentThe Industrial Materials segment’s net sales were $231 million in the second quarter of 2013, as compared to $262 million in the second quarter of 2012. Net sales in the quarter decreased primarily as the result of lower graphite electrode and needle coke sales prices. Partially offsetting the impact of lower pricing was higher graphite electrode volume in the current quarter as compared to the same period in the prior year. It is important to note that the second quarter of 2012 reflected lower volumes due to the impact of customer inventory destocking initiatives.