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GrafTech International Ltd. (NYSE:GTI) today announced financial results for the fourth quarter and year ended December 31, 2013.
2013 Fourth Quarter Review
Net sales were $309 million, a decrease of 17 percent, compared to $371 million in the fourth quarter of 2012.
GrafTech reported a net loss of $(28) million, or $(0.21) per diluted share, versus net income of $29 million, or $0.21 per diluted share, in the same period of the prior year. Adjusted net income*, which excludes the impact of $33 million (net of tax) of rationalization and related charges and a $9 million (net of tax) pension mark-to-market accounting gain** in the fourth quarter, was a loss of $(4) million, or $(0.03) per diluted share. Adjusted net income* in the fourth quarter of 2012, excluding pension mark-to-market accounting charges, was $34 million, or $0.25 per diluted share.
EBITDA* (which excludes the impact of rationalization and related charges and the pension mark-to-market accounting gain) was $33 million as compared to $75 million in the prior year period.
2013 Full Year Review
Net sales were $1,167 million, a 7 percent decline compared to $1,248 million in 2012.
Industrial Materials segment revenue was $909 million, a decrease of 11 percent compared to 2012.
Engineered Solutions segment revenue was $257 million, representing record revenue for the third consecutive year and an increase of 16 percent compared to 2012.
GrafTech reported a net loss of $(27) million, or $(0.20) per diluted share, compared to net income of $118 million, or $0.84 per diluted share, in 2012. The 2013 net loss included $47 million (net of tax) of rationalization and related charges and a pension mark-to-market gain** of $9 million (net of tax), while 2012 net income included a pension mark-to-market accounting charge of $6 million (net of tax) and a non-cash discrete tax benefit of $10 million. Excluding these items, 2013 adjusted net income* was $10 million, or $0.08 per diluted share, compared with 2012 adjusted net income* of $113 million, or $0.81 per diluted share.
2013 EBITDA* was $144 million, as compared to $247 million in 2012. The decline was largely driven by lower realized pricing in our Industrial Materials segment.
Joel Hawthorne, Chief Executive Officer of GrafTech, commented, "We faced a number of challenges throughout 2013, primarily in a difficult market environment in our Industrial Materials segment. We are pleased with the progress we made as we navigated through this cyclically low period in our industry. We made several strategic decisions that allowed us to significantly improve our cost structure and enhance our global competitiveness. In our Engineered Solutions segment, we continued to provide innovative graphite solutions, which helped us achieve 16 percent growth and record sales. In response to difficult market conditions, we decreased headcount, froze salaries, and reduced discretionary expenses, working capital and planned capital expenditures. These actions have positioned us well going into 2014."