The graphite company reduced its EBITDA target to a range of $105 million to $115 million from a range of $135 million to $150 million. GrafTech now expects operating cash flow of $95 million to $110 million, down from $125 million to $140 million.
The company forecasts working capital reduction of approximately $70 million, down from $90 million. GrafTech also decreased its capital expenditures guidance to a range of $80 million to $90 million from a range of $85 million to $95 million.
GrafTech announced some executive changes. Darrell Blair, Vice President of Global Sales for the graphite electrode business, will become President of the Industrial Materials segment. Dr. Pieter Barnard, the current President of the Industrial Materials segment, will retire effective November 1 after a 42-year career.
Dr. Julian Norley, Vice President of Corporate Research and Development, will lead the new Technology and Innovation Center. Finally, Hermanus Pretorius, President of GrafTech's Seadrift Coke subsidiary, will also retire effective November 1.
Separately, TheStreet Ratings team rates GRAFTECH INTERNATIONAL LTD as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GRAFTECH INTERNATIONAL LTD (GTI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."