- As announced on November 30, 2010, GrafTech successfully completed the acquisitions of Seadrift Coke L.P. (Seadrift), the world’s second-largest producer of petroleum-based needle coke, and C/G Electrodes LLC (St. Marys), a US-based graphite electrode producer. These acquisitions significantly strengthen our business model, position us as the graphite electrode industry’s low-cost producer and allow us to better serve our customers.
- Net sales increased to $1,007 million, or $988 million excluding the impact of the acquisitions, versus 2009 net sales of $659 million.
- Operating income improved to $159 million, or $174 million excluding the impact of the acquisitions. This compares to operating income of $99 million in 2009, or $95 million excluding $4 million from a gain associated with the settlement of a contingent liability in 2009.
- Net income was $175 million (including a $30 million non-cash deferred tax valuation allowance release) or $1.42 per diluted share, versus $13 million or $0.10 per diluted share in 2009. Adversely impacting net income in 2009 was a charge of $53 million related to the non-cash impairment in the value of our investment in Seadrift.
- On an operating basis, net income excluding the impact of the acquisitions and other special items* was $146 million or $1.20 per diluted share, as compared to $63 million or $0.52 per diluted share in 2009.
- Net cash provided by operating activities was $145 million, versus $170 million in 2009. The decline year-over-year was primarily driven by a $42 million increase in working capital to support higher sales volumes and $14 million in customary acquisition related expenditures.
- Net debt* at year end 2010 was $288 million, including $130 million drawn on the revolver and $143 million of non-interest bearing Senior Subordinated Notes used to fund the acquisitions of Seadrift and St. Marys.
- Also announced earlier this year, GrafTech successfully completed the refinancing of its principal revolving credit facility. The new $260 million revolver represents a $45 million increase over the prior facility and extends the maturity date to April 29, 2013. The facility has an accordion feature that enables it to be increased to up to $390 million to provide additional capacity to fund future growth.
GrafTech International Ltd. (NYSE:GTI) today announced financial results for the fourth quarter and year ended December 31, 2010. As noted below, certain of the following financial results are presented on a pro forma basis, excluding all impacts of the acquisitions. 2010 Full Year Review