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Mar 31, 2024
GrafTech Q1 2024 Earnings Report
Announced first quarter results, successfully executing strategic initiatives to reduce costs and preserve long-term flexibility.
Key Takeaways
GrafTech International Ltd. reported a net loss of $31 million, or $0.12 per share, and adjusted EBITDA of $0.2 million for the quarter ended March 31, 2024. The company is focused on managing costs and enhancing customer engagement amid a weak commercial environment.
Net loss of $31 million, or $0.12 per share.
Adjusted EBITDA of $0.2 million.
Net cash used in operating activities of $1 million and adjusted free cash flow of negative $11 million.
Significant cost improvement reflects actions to aggressively address all elements of our cost structure.
Forward Guidance
GrafTech expects near-term demand for graphite electrodes to remain weak due to persistent challenges in the commercial environment and constrained steel industry production. Sales volume in the second quarter of 2024 is expected to be broadly in line with sales volume for the first quarter of 2024 and we continue to expect a modest year-over-year improvement in sales volume for the full year. The company now anticipates a mid-teen percentage point decline compared to 2023 in it's full year 2024 cash cost of goods sold per MT.
Positive Outlook
- Sales volume in the second quarter of 2024 is expected to be broadly in line with sales volume for the first quarter of 2024
- Expect a modest year-over-year improvement in sales volume for the full year.
- The company is taking strategic actions to reduce fixed manufacturing costs.
- Taking additional actions to reduce variable costs, including certain raw materials and energy.
- Anticipate improvement in sales and production volume levels.
Challenges Ahead
- Demand for graphite electrodes in the near term will remain weak.
- Steel industry production remains constrained by global economic uncertainty.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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