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

AZZ feels double-edged sword of tariffs with coating wins, Precoat headwinds
AZZ Inc. delivered steady results in its fiscal second quarter. While infrastructure-heavy work buoyed its Metal Coatings segment, its Precoat Metals business navigated softer building markets and tariff-driven uncertainty.

U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.

August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.

TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.

Metallus, USW agree to tentative four-year labor deal
Metallus and the United Steelworkers (USW) have agreed to a tentative four-year labor contract.