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Jun 30, 2020
GrafTech Q2 2020 Earnings Report
GrafTech reported second quarter results with net income of $93 million and Adjusted EBITDA of $151 million.
Key Takeaways
GrafTech's Q2 2020 net sales were $281 million, with a net income of $93 million, or $0.35 per share. Adjusted EBITDA was $151 million. The company generated $148 million in cash flow from operating activities and ended the quarter with a liquidity position of approximately $435 million.
Net sales for the quarter ended June 30, 2020 were $281 million, compared to $480 million in the second quarter of 2019.
Net income for the second quarter of 2020 was $93 million, or $0.35 per share, compared to $196 million, or $0.68 per share in the second quarter of 2019.
Adjusted EBITDA was $151 million in the second quarter of 2020 compared to $284 million in the second quarter of 2019.
Cash flow from operating activities was $148 million in the second quarter of 2020, compared to $202 million in the comparable period of 2019.
Forward Guidance
The second half of 2020 will continue to be challenging as GrafTech and its customers face macro-economic headwinds. Overall demand and pricing are expected to remain low for the remainder of 2020.
Positive Outlook
- The company has full confidence in the strengths of the Electric Arc Furnace and graphite electrode businesses.
- The environmental and economic attributes of these industries are key advantages and position them for continued growth over the longer term.
- GrafTech is well positioned to navigate the challenges of the current environment and the opportunities in the future recovery given its leadership position in the industry.
- GrafTech has strong cash flows.
- GrafTech has an advantaged cost position.
Challenges Ahead
- The second half of 2020 will continue to be challenging as GrafTech and its customers face macro-economic headwinds.
- The company foresees a measured recovery in the industry when the pandemic eases as customers work through inventory levels that were elevated prior to the onset of the pandemic.
Historical Earnings Impact
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