GrafTech's Q2 Sales Hurt by Weak Steel Market Demand

GrafTech International Ltd. (NYSE:GTI) announced its results for Q2 2015, commenting that it achieved net sales of $165 million. That’s down 42 percent from the year-ago quarter due to “[l]ower shipment volumes and pricing in both business segments.”
Other key points include:

• Reported net loss was $(23) million, or $(0.17) per diluted share, compared to reported net loss of $(155) million, or$(1.14) per diluted share, in the same period of the prior year. These reported losses include special charges¹ (after tax) of $6 million in the second quarter of 2015 and special charges (after tax) of $149 million in the second quarter of 2014.
• Adjusted net loss*, which excludes special charges (after tax), was $(17) million, or $(0.12) per diluted share, compared to adjusted net loss* of $(6) million, or $(0.05) per diluted share, in the second quarter of 2014.
• Adjusted EBITDA*, which excludes special charges, was $13 million, compared to $28 million in the same period of the prior year.
• Operating cash flow was $2 million, compared to $34 million in the same period of 2014.

*Non-GAAP financial measures. 

Joel Hawthorne, CEO of GrafTech, commented:

Persistent weak demand in the global steel market has created a very challenging environment in the Industrial Materials segment. Graphite electrode demand has declined further as end market weakness continues and as global electric arc furnace (EAF) steel production has been partially displaced by Chinese steel exports. This market dislocation has created a challenging operating environment for our Company and the industry as a whole.
The previously announced capital infusion through the issuance of $150 million of convertible preferred stock to Brookfield will strengthen our capital structure and provide GrafTech with increased financial flexibility to address challenges through this difficult part of the cycle.

Click here to read the full GrafTech International Ltd. (NYSE:GTI) press release.