Loading...
•
Dec 31, 2021
GrafTech Q4 2021 Earnings Report
GrafTech's Q4 2021 financial results were announced, with improved market conditions and strong execution driving a favorable finish to the year and a positive outlook for 2022.
Key Takeaways
GrafTech International Ltd. reported a net income of $141 million, or $0.54 per share, and adjusted earnings per share of $0.50 for the fourth quarter of 2021. Sales and production volumes increased compared to the fourth quarter of 2020, and the company reduced debt by $100 million during the quarter.
Net income was $141 million, or $0.54 per share, with adjusted earnings per share at $0.50.
Sales volume increased 19% compared to the fourth quarter of 2020.
Production volume increased 28% compared to the fourth quarter of 2020.
Debt was reduced by $100 million during the quarter.
Forward Guidance
The steel industry has experienced unprecedented pricing over the past 12 months. While pricing has retreated recently, it remains well above historical levels and the near-term fundamentals in the steel industry remain strong. More broadly, the industry is continuing to look for ways to de-carbonize and many of these efforts are focused on moving away from traditional blast furnace production to electric arc furnace steel production. GrafTech is well-positioned to benefit from these events in 2022 and beyond.
Positive Outlook
- Market trends continued to improve in the fourth quarter of 2021 and are expected to continue into 2022.
- Average non-LTA graphite electrode price increased 10% sequentially from the third quarter of 2021.
- First quarter average non-LTA prices are expected to increase an additional 17-20% over the fourth quarter.
- The company is well-positioned to benefit from the steel industry's efforts to de-carbonize.
- Focus on investing in our business, strengthening our balance sheet and opportunistic purchases under the remaining $159 million stock repurchase authorization.
Challenges Ahead
- Steel pricing has retreated recently, though it remains well above historical levels.
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...