This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

GrafTech Reports Third Quarter 2013 Results, Announces Initiatives To Improve Operating Efficiencies And Global Competitiveness

In addition to the above, these initiatives will also allow us to reduce future maintenance capital expenditures. We are targeting annual maintenance at our graphite electrode plants to be reduced by approximately 25 percent or over $10 million annually. This would be a result of fewer stand-alone graphite electrode production facilities.

Mr. Shular commented, “While these are difficult choices as they impact members of our worldwide team, these initiatives will enable GrafTech to drive operating efficiencies and be more competitive globally, and continue to provide our customers with the highest quality electrodes. Our aim is to ensure that GrafTech is very well positioned as the global economies and steel demand recover.”
  • Positioning for future growth

As part of our strategy to grow our low-cost, advantaged manufacturing footprint, we have identified debottlenecking opportunities through Lean/Six Sigma efforts at our other four graphite electrode plants. These four graphite electrode facilities offer best-in-class production capabilities and can expand their capacity, in increments, up to a total of approximately 60,000 metric tons to respond to growth in demand. We currently estimate that the average cost to increase capacity across our graphite electrode production network is approximately $2,500 per metric ton, which compares very favorably to industry averages for comparable expansion projects.

The first increment of potential expansion has been identified at our Monterrey, Mexico plant, one of our most advantaged facilities, strategically located 350 miles from our needle coke plant in Seadrift, Texas. As economic conditions improve and graphite electrode demand recovers, our Mexico facility could increase capacity by 15,000 metric tons in 9 to 12 months with minimal headcount additions. Growing this low-cost production site would further lower our overall graphite electrode cost structure.

Our team regularly reviews global customer demand and, as the European Union (EU) and other key markets recover, we will determine the best timing to commence the Mexico debottlenecking initiative.

4 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs