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Mar 31, 2021
GrafTech Q1 2021 Earnings Report
GrafTech's first quarter results reflected improved market trends and strategic execution.
Key Takeaways
GrafTech International Ltd. reported solid first-quarter results, marked by improved production and sales volumes, alongside a strengthened balance sheet through debt reduction and interest rate lowering. The company saw increased demand for graphite electrodes and expects further improvement in non-LTA pricing in the second half of the year.
Net income was reported at $99 million, or $0.37 per share, with a net income margin of 32%.
Adjusted EBITDA stood at $155 million, resulting in a 51% margin.
Cash flow from operating activities was $122 million.
Debt was reduced by $150 million, and the interest rate on the Term Loan was lowered by 100 basis points.
Forward Guidance
GrafTech expects sales volumes to increase through the balance of the year, driven by improved market demand.
Positive Outlook
- Increased demand for graphite electrodes.
- Positive influence on spot prices.
- Expected improvement in non-LTA pricing in the second half of 2021.
- Long-term growth opportunity associated with the benefits of electric arc furnace steel production.
- Global steel market capacity utilization rates have continued to improve sequentially.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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