GrafTech International Ltd. (NYSE:GTI) today announced financial results for the third quarter ended September 30, 2013 and announced initiatives to improve operating efficiencies and global competitiveness.
2013 Third Quarter Financial Review
- Net sales were $303 million, a decrease of five percent, compared to $321 million in the third quarter of 2012.
- Net loss of $8 million or $(0.06) per diluted share versus net income of $30 million or $0.22 per diluted share in the same period of the prior year. Excluding the impact of $18 million of rationalization and related charges ($13 million, net of tax), adjusted net income * was $6 million or $0.04 per diluted share in the current quarter.
- EBITDA * was $35 million (excluding the impact of rationalization and related charges) as compared to $65 million in the third quarter of 2012. The decline was largely driven by lower realized pricing in our Industrial Materials segment.
- Net cash provided by operating activities was $54 million versus $45 million in the third quarter of 2012.
- Net debt * was reduced $27 million to $565 million as compared to $592 million at June 30, 2013.
Craig Shular, Chief Executive Officer of GrafTech, commented, “We remain in a difficult operating environment, particularly for our Industrial Materials segment. We have announced initiatives today designed to significantly improve our competitiveness, allow us to better serve customers and position our Industrial Materials business well when global economies and steel demand recover.”
Industrial Materials SegmentThe Industrial Materials segment’s net sales were $233 million in the third quarter of 2013, as compared to $260 million in the third quarter of 2012. Operating income for the Industrial Materials segment, excluding the impact of rationalization and related charges *, was $4 million in the third quarter of 2013, as compared to $37 million in the third quarter of 2012. The reduction in sales and operating income is largely attributed to lower graphite electrode and needle coke pricing. Engineered Solutions Segment Net sales for the Engineered Solutions segment increased 15 percent to $70 million in the third quarter of 2013 compared to $61 million in the third quarter of 2012. Higher sales in our advanced consumer electronics product offerings drove the increase in revenue.