Q3 2024 GrafTech International Ltd Earnings Call Transcript
Key Points
- GrafTech International Ltd (EAF) reported a significant increase in sales volume, up 9% year over year and 13% on a year-to-date basis, despite a challenging demand environment.
- The company successfully generated $20 million in free cash flow during the third quarter, demonstrating strong cash flow performance.
- GrafTech International Ltd (EAF) achieved a 28% year-over-year decrease in cash COGS per metric ton, exceeding expectations and leading to an updated full-year guidance for cost improvements.
- The company announced a new financing transaction to improve liquidity and extend debt maturities, providing strategic flexibility for future growth opportunities.
- GrafTech International Ltd (EAF) is making progress in regaining lost market share and has entered into new strategic multiyear electrode sales agreements, reflecting customer confidence in their products and services.
- The company reported a net loss of $36 million for the third quarter, with adjusted EBITDA at negative $6 million, reflecting lower pricing and a shift towards non-LTA volumes.
- The global steel industry remains constrained by economic uncertainty and geopolitical conflict, leading to a weak demand environment for graphite electrodes.
- GrafTech International Ltd (EAF) experienced a 24% year-over-year decline in weighted average price for non-LTA sales, contributing to an 18% decrease in net sales compared to the third quarter of 2023.
- The company's production volume was down to 19,000 metric tons, resulting in a capacity utilization rate of 46%, impacted by planned maintenance shutdowns at European facilities.
- The graphite electrode industry continues to face low capacity utilization and weak pricing dynamics, with ongoing competitive pressures from increased electrode exports from countries like India and China.
Good morning. Ladies and gentlemen, welcome to the Graftech third quarter, 2024 earnings conference call and webcast. (Operator Instructions) This call is being recorded on Tuesday, November 12, 2024.
I would now like to turn the conference over to Mike Dillon, Vice President of Investor Relations. Please go ahead.
Thank you. Good morning and welcome to Graftech International's third quarter. 2024 earnings call on with me today are Tim Flanagan, Chief Executive Officer, Jeremy Halford, Chief Operating Officer and Rory o'donnell, Chief Financial Officer, Tim will begin with opening comments. Jeremy will then discuss safety, the commercial environment, sales and operational matters. Rory will review our quarterly results and other financial details and Tim will close with comments on our outlook. You'll then open the call to questions, turning to our next slide as a reminder, some of the matters discussed on this call may include forward-looking statements regarding among other things,
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