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Mar 31, 2023
GrafTech Q1 2023 Earnings Report
Reported first quarter 2023 results and successfully executed plans to navigate current market conditions. Received regulatory approval to restart production activities at St. Marys, Pennsylvania facility.
Key Takeaways
GrafTech reported a net loss of $7 million, or $0.03 per share, with adjusted EBITDA of $15 million. The company's sales volume was 17 thousand metric tons, and production volume was 16 thousand metric tons. They also saw $25 million in cash flow from operating activities.
Net loss of $7 million, or $0.03 per share
Adjusted EBITDA of $15 million
Sales volume of 17 thousand metric tons
Received regulatory approval to restart production activities at St. Marys, Pennsylvania facility
Forward Guidance
The suspension of our operations in Monterrey, Mexico in late 2022 will have a significant impact on our sales volume through the end of the second quarter of 2023. We estimate our sales volume for the second quarter of 2023 will be in the range of 24 thousand MT to 27 thousand MT. As a result, we estimate our sales volume for the full year of 2023 will be in the range of 100 thousand MT to 115 thousand MT.
Positive Outlook
- Sales volume levels to begin recovering in the second quarter with further improvement in the second half of the year
- Modest easing of the impact from inflationary pressures on a sequential basis compared to the first quarter of 2023
- Steel industry’s accelerating efforts to decarbonize will lead to increased adoption of the electric arc furnace method of steelmaking, driving long-term demand growth for graphite electrodes
- Demand for petroleum needle coke to accelerate driven by its use to produce synthetic graphite for use in lithium-ion batteries for the growing electric vehicle market
- Vertical integration into petroleum needle coke production via our Seadrift facility, will optimally position GrafTech to benefit from these sustainable industry tailwinds
Challenges Ahead
- Suspension of operations in Monterrey, Mexico will have a significant impact on our sales volume through the end of the second quarter of 2023
Historical Earnings Impact
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Avg. Return Before/After Earnings
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