Fri, Jul 26, 7:23 PM (43 days ago)
GrafTech International Ltd. experienced a challenging Q2 2024, with net sales declining by 26% year-over-year to $137.3 million, primarily due to lower realized prices and a shift from long-term agreements (LTAs) to non-LTAs. Cost of goods sold decreased by 16%, but gross profit fell sharply by 86% to $4.0 million. The company reported a net loss of $14.8 million, doubling from the previous year. Operating expenses saw a significant reduction, partly due to a $9.2 million reimbursement of legal fees. GrafTech's rationalization initiatives, including the suspension of production at its St. Marys facility and other cost-cutting measures, are expected to yield annual savings of $25 million. The company anticipates continued weak demand and challenging pricing in the near term but remains confident in long-term growth driven by the steel industry's decarbonization efforts. Liquidity stood at $231.8 million, with $120.7 million in cash and $111.1 million available under the revolving credit facility.