Steel Product Producers
GrafTech Swings to a Loss in Q3
Written by Becca Moczygemba
November 3, 2023
GrafTech International reported a bumpy third quarter. But despite the challenges, the company said it’s certain improvement is on the horizon.
GrafTech International
| Third quarter ended Sept. 30 | 2023 | 2022 | % Change |
|---|---|---|---|
| Net sales | $159 | $304 | -47.7% |
| Net earnings (loss) | ($23) | $93 | -124.2% |
| Per diluted share | ($0.09) | $0.36 | -125% |
| Nine months ended Sept. 30 | |||
| Net sales | $483 | $1,034 | -53.2% |
| Net earnings (loss) | ($38) | $333 | -111.4% |
| Per diluted share | ($0.15) | $1.28 | -111.7% |
“Third-quarter results fell short of our expectations, primarily as a result of lower industry demand,” said Marcel Kessler, president and CEO of GrafTech, in the earnings release.
The Ohio-based electrode manufacturer reported sales of $159 million, down 48% from $304 million in Q3’22. It swung to a loss of $23 million in Q3 from net income of $93 million during the same quarter one year ago.
Sales volumes of 24,200 thousand metric tons in Q3’23 were down year over year, dropping 32.1% from 35,700 thousand metric tons in Q3’22.
On the Nov. 3 earnings call, Kessler attributed the lower demand to a down steel market.
“The global steel industry remains constrained by geopolitical conflict and economic uncertainty, which has resulted in a persistently soft commercial environment and weak demand, and declining prices for graphite electrodes,” Kessler said on the call.
Tim Flanagan, CFO and treasurer, noted that decarbonization efforts contribute to the sales of graphite electrodes.
“We estimate that planned EAF capacity additions, based on steel producer announcements, along with production increases at existing EAF plants have the potential to bring in incremental 200,000 metric tons of annual graphite electrode demand,” he said.
Kessler will be stepping down as CEO of GrafTech beginning Nov. 15, but will remain on the company’s board of directors. Tim Flanagan, current CFO and treasurer, will serve as interim CEO.
Becca Moczygemba
Read more from Becca MoczygembaLatest in Steel Product Producers
Cleveland-Cliffs quietly removes name from Steelton mill
The Cleveland-Cliffs name has been removed from its idled Steelton rail mill. SMU asked Cliffs about the move and if it might signal that it is selling the mill...
Nucor sees sequentially lower Q3 profits across all three business segments
Nucor's third-quarter earnings will be down quarter-over-quarter, but still higher than a year earlier.
Hyundai still on for Louisiana steel mill despite US raid at Georgia battery plant
Hyundai has reaffirmed its commitment to build a steel plant in Louisiana following a US government immigration raid at its battery facility in Georgia.
Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.
Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.