This Day On The Street
Continue to site
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 Recognizes Impairment Charge; Announces Additional Initiatives To Increase Global Competitiveness, Reduce Cost And Improve Profitability

GrafTech International Ltd. (NYSE:GTI) today announced an estimated $126 million non-cash impairment charge and additional initiatives to increase its global competitiveness, reduce cost and improve profitability. These initiatives build on the progress the company has made over the last nine months and are expected to generate $18 million in annual savings. Together with the $75 million in annual savings generated by the largely completed Industrial Materials production rationalization, GrafTech expects to generate over $90 million in ongoing annual cost savings.

Product Line Rationalization in Engineered Solutions

As a result of recent changes in the business environment, management reviewed its advanced graphite materials (AGM) business, and evaluated opportunities to improve efficiencies and more effectively utilize supply chain and collaborative relationships. As a result, the company has decided to exit production of certain AGM product lines, including its isomolded products primarily serving the solar industry, where compressing margins in an increasingly competitive environment have eroded the value proposition. Given the recent continuing rapid rate of decline in pricing in the solar supply chain, the returns associated with these product lines have become insufficient to contribute to our target of mid-teen percentage operating margins for the Engineered Solutions segment.

As part of these efforts, the company plans to discontinue certain product line production at its facilities in Clarksburg, West Virginia; Columbia, Tennessee; and Emporium, Pennsylvania. The company will also realign overhead related to these product lines. The product lines discontinuance and related overhead reductions are expected to yield approximately $18 million of annual cost savings, of which $8 million are expected to be cash savings. The actions are targeted to be substantially complete by the end of 2014 and are expected to contribute approximately $1 million in savings in 2014, with the full effect being reflected in the second half of 2015.

1 of 4

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 0.00%
FB $117.81 0.00%
GOOG $701.43 0.00%
TSLA $211.53 0.00%
YHOO $36.94 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs