Loading...
•
Sep 30, 2021
GrafTech Q3 2021 Earnings Report
Reported strength in market conditions supporting improved pricing and profitability.
Key Takeaways
GrafTech International Ltd. announced third quarter 2021 financial results with net income of $120 million, or $0.45 per share. Sales volume increased 33% compared to the third quarter of 2020. The company reduced debt by $100 million in the quarter and repurchased 4.3 million shares of stock for $46 million.
Net income of $120 million, or $0.45 per share, and net income margin of 35%.
Adjusted EBITDA of $172 million, for a 50% adjusted EBITDA margin.
Sales volume increased 33% compared to the third quarter of 2020.
Reduced debt $100 million and $300 million year-to-date through the third quarter.
Forward Guidance
In the fourth quarter, GrafTech expects its non-LTA price for graphite electrodes delivered and recognized in revenue to be 7-9% higher than in the third quarter of 2021. In 2022, the company expects its non-LTA pricing to be significantly higher than the second half of 2021. Cost increases are also expected in the fourth quarter of 2021 and into 2022.
Positive Outlook
- Expects Q4 non-LTA price to be 7-9% higher than Q3 2021.
- Expects non-LTA pricing to be significantly higher in 2022 than H2 2021.
- Global steel market capacity utilization rates continue to be strong.
- Continue to make progress in reducing our long-term debt
- The Company is now authorized to repurchase up to $163 million in shares of the Company’s common stock
Challenges Ahead
- Expects some cost increases in the fourth quarter of 2021 and into 2022.
- Cost increases driven by recent global cost pressures, particularly for third-party needle coke, energy, and freight.
- The cyclical nature of our business and the selling prices of our products may lead to periods of reduced profitability and net losses in the future
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...