The following is a summary of the GrafTech International Ltd. (EAF) Q1 2024 Earnings Call Transcript:
Financial Performance:
GrafTech reported a net loss of $31 million or $0.12 per share in Q1 2024, with a break-even adjusted EBITDA.
Their liquidity position at the end of Q1 was $275 million, inclusive of $165 million in cash and $110 million available under a revolving credit facility.
The company expects a mid-teen percentage decline in their cash cost per metric ton for 2024 compared to 2023.
Anticipation of full-year 2024 capital expenditure is projected to be in the range of $35 million to $40 million.
GrafTech won a legal dispute, expecting to be reimbursed about $9 million for legal fees and expenses.
Business Progress:
GrafTech is expanding its product offerings, incorporating 800 millimeter supersized electrodes into their portfolio with trial runs expected in Q3 2024.
They have widened their architect system and have made significant reductions in their overhead structure.
Production activities at St. Marys plant are scheduled to wrap up by the end of Q2 2024.
GrafTech sees potential long-term opportunities in the EV battery market supply chain.
Their needle coke plant in Seadrift is operating to meet internal demand for their graphite electrode plants.
The company continues to expect a decline in fixed cost and a modest improvement in sales and production volume for 2024.
Given the competitive state of the US market, they anticipate maintaining their current market share.
They foresee receiving approval for EV battery anode production at Seadrift in Q3 and plan for related construction to last around 18 months.
More details: GrafTech IR
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