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Sep 30, 2020
GrafTech Q3 2020 Earnings Report
GrafTech's third quarter financial results were reported, showing resilience amidst a challenging environment, with net income of $94 million and Adjusted EBITDA of $153 million.
Key Takeaways
GrafTech International Ltd. announced third-quarter results with net sales of $287 million, net income of $94 million, and Adjusted EBITDA of $153 million. The company proactively managed through the COVID-19 crisis and saw a measured recovery in global steel markets.
Net sales for the quarter were $287 million, compared to $421 million in the third quarter of 2019, reflecting reduced sales volumes due to COVID-19 and customer inventory destocking.
Net income for the third quarter was $94 million, or $0.35 per share, compared to $176 million, or $0.61 per share in the third quarter of 2019.
Adjusted EBITDA was $153 million in the third quarter of 2020, compared to $245 million in the third quarter of 2019.
The company ended the quarter with a strong liquidity position of approximately $406 million, including $159 million in cash and cash equivalents.
Forward Guidance
For the remainder of 2020, GrafTech anticipates full year LTA sales volumes to be above the midpoint of the expected range of 100 thousand - 115 thousand MT and LTA revenue between $1,000 million and $1,080 million.
Positive Outlook
- Full year LTA sales volumes are expected to be above the midpoint of the range of 100 thousand - 115 thousand MT.
- Full year LTA revenue is expected to be between $1,000 million and $1,080 million in 2020.
- Estimated LTA volume for 2021 is projected to be 98-108 thousand MT.
- Estimated LTA volume for 2022 is projected to be 95-105 thousand MT.
- Estimated LTA volume for 2023 through 2024 is projected to be 35-45 thousand MT.
Challenges Ahead
- Some customers are struggling to take their committed volumes.
- This is causing some non-performance and disputes, including a few arbitrations.
- The company will continue to work to preserve its rights under the LTAs.
Historical Earnings Impact
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