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GrafTech International Ltd. Reports Operating Results (10-Q)

October 29, 2012 | About:
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10qk

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GrafTech International Ltd. (GTI) filed Quarterly Report for the period ended 2012-09-30.

Graftech International Ltd has a market cap of $1.44 billion; its shares were traded at around $10.75 with a P/E ratio of 12.4 and P/S ratio of 1.1. Graftech International Ltd had an annual average earning growth of 0.8% over the past 10 years.

Highlight of Business Operations:

Net sales. Net sales for our Industrial Materials segment decreased to $260.2 million in the three months ended September 30, 2012 from $302.4 million in the three months ended September 30, 2011. This decrease was primarily the result of lower sales volumes for graphite electrodes and needle coke. These volume decreases were partially offset by higher realized prices in the three months ended September 30, 2012 compared to the three months ended September 30, 2011. The weighted average selling price, excluding currency impact, of electrodes in the three months ended September 30, 2012 increased approximately 9% compared to the weighted average price in the three months ended September 30, 2011 as a result of electrode price increases implemented in late 2011 and early 2012 to address cost pressures.

Segment operating costs and expenses as a percentage of sales for Industrial Materials increased to 86% for the three months ended September 30, 2012, compared to 82% for the three months ended September 30, 2011. This increase was caused by the flow through of inventory with higher cost raw materials and overhead absorption rates in the three months ended September 30, 2012 compared to the three months ended September 30, 2011. These increases in costs were offset by favorable foreign currency impacts. Total operating costs and expenses decreased $25.3 million in the three months ended September 30, 2012 as compared to the three months ended September 30, 2011, driven primarily by lower sales volumes for graphite electrodes and needle coke.

Net sales. Net sales for our Industrial Materials segment decreased to $715.5 million in the nine months ended September 30, 2012 compared to net sales of $835.6 million in the nine months ended September 30, 2011. This decrease was primarily the result of lower sales volumes for graphite electrodes and needle coke. These volume decreases were partially offset by higher realized prices in the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. The weighted average selling price, excluding currency impacts, of electrodes in the nine months ended September 30, 2012 increased approximately 9% compared to the average price

Segment operating costs and expenses as a percentage of sales for Industrial Materials decreased to 85% for the nine months ended September 30, 2012, compared to 86% for the nine months ended September 30, 2011. Favorable foreign currency impacts decreased operating expenses as a percentage of sales in the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011. The first half of 2012 also benefited from lower costs as we consumed remaining year-end inventories. That inventory carried lower raw material costs and overhead absorption rates compared to inventory currently on hand. This benefit in the first half of the year was partially offset by the flow through of higher costs in the third quarter.

Net sales of Industrial Materials was impacted by the changes in the average exchange rates for the periods resulting in a decrease of $7.7 million and $11.6 million in the three and nine months ended September 30, 2012, respectively, as compared to the same periods of 2011. Cost of Industrial Materials was impacted by these events resulting in a decrease of $11.6 million and $23.1 million in the three and nine months ended September 30, 2012, respectively, compared to the same periods of 2011.

Read the The complete Report

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