GrafTech International Ltd. (NYSE:GTI) today announced financial results for the first quarter ended March 31, 2014 as well as an update on rationalization and related initiatives and the successful completion of the refinancing of its revolving credit facility.
Joel Hawthorne, Chief Executive Officer of GrafTech, commented, “GrafTech has been working diligently to execute its strategy, and our first quarter results demonstrate that we have the right plan in place to succeed and drive value. The actions that we have taken to lower costs and realign our production platform have positioned us to be successful in a very competitive global market, and our team delivered solid results in this challenging environment. We have taken prudent measures to increase our financial flexibility to provide appropriate levels of liquidity to invest and grow our business and execute on our stated, well-defined strategy."
2014 First Quarter Review
- Net sales were $281 million, an increase of 11 percent, compared to $254 million in the same period of the prior year. This improvement was driven by higher volumes in both the Industrial Materials and Engineered Solutions segments.
- GrafTech reported a net loss of $(12) million, or $(0.08) per diluted share, versus net income of $4 million, or $0.03 per diluted share in the same period of the prior year. The net loss in the first quarter of 2014 includes approximately $12 million of charges, net of tax, for the recently announced rationalization initiatives. Excluding these charges, adjusted net income* was $1 million, or $0.01 per diluted share.
- EBITDA* (which excludes the impact of rationalization and related charges) was $33 million as compared to $36 million in the prior year period.
- Net cash provided by operating activities was $22 million versus $18 million in the first quarter of 2013. Operating cash flow in the first quarter of 2014 includes approximately $9 million of rationalization and related cash costs. Investing cash flows were positively impacted by insurance proceeds and assets sales of approximately $5 million in the quarter.
- Net debt* was $537 million as compared to $540 million at the end of 2013.
Industrial Materials SegmentNet sales for Industrial Materials increased 5 percent to $219 million in the first quarter of 2014, as compared to $209 million in the first quarter of 2013. The increase in revenue was driven by higher sales volumes of graphite electrodes and refractories, partially offset by lower realized graphite electrode prices.