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.