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 Preliminary Second Quarter 2014 Results

GrafTech International Ltd. (NYSE:GTI) today announced preliminary financial results for the second quarter ended June 30, 2014. The results are based on the company's preliminary second quarter earnings and are subject to adjustment as the impact of the previously announced impairment in the Engineered Solutions segment is finalized.

Joel Hawthorne, Chief Executive Officer of GrafTech, commented, “In a challenging environment, our team remains focused on executing our plan to increase global competitiveness, reduce cost and improve profitability while simultaneously delivering the world class products our customers expect. The previously announced Industrial Materials rationalization actions have been substantially completed and we are now moving forward with additional actions to improve the quality of earnings in our Engineered Solutions segment to drive further value for our shareholders."

Please refer to GrafTech's earlier announcement today regarding an impairment charge in the Engineered Solutions segment, other charges, and additional actions being taken to improve profitability.

2014 Second Quarter Review

  • Net sales were $284 million, a decrease of six percent, compared to $301 million in the same period of the prior year.
    • Industrial Materials segment revenue declined 11 percent primarily due to weaker graphite electrode realized pricing and lower needle coke sales volume.
    • Engineered Solutions segment revenue increased 11 percent primarily due to higher sales volumes in advanced consumer electronics and high temperature furnace applications.
  • Preliminary earnings were a net loss of $(160) million, or $(1.18) per diluted share, versus net income of $4 million, or $0.03 per diluted share in the same period of the prior year. The preliminary net loss in the second quarter of 2014 includes an estimated $154 million, net of tax, of special charges. Excluding these charges, adjusted net loss* was $(6) million, or $(0.05) per diluted share.
  • EBITDA* (which excludes special charges) was $28 million as compared to $40 million in the same period of the prior year.
  • Net cash provided by operating activities was $34 million versus a net cash use of $(6) million in the second quarter of 2013. Operating cash flow in the second quarter of 2014 includes approximately $9 million of rationalization and related cash costs.
  • Net debt* was $531 million as compared to $540 million at the end of 2013.

Mr. Hawthorne, commented, “Our team has made solid progress in reducing working capital requirements and improving operating cash flow. Operating cash flow in the first half of 2014 was $56 million, an improvement of $44 million year-over-year. We expect to continue to reduce net debt levels as we move throughout the year and further decrease working capital requirements.”

1 of 6

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
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs