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
Algoma to shut down line in Ontario ahead of EAF start
The 106” Mill was part of Algoma's plate and strip combination facility.
Nippon trial vs. US government to begin early next month: Report
Nippon Steel’s litigation against the US government is set to begin in early February, according to a report by Japan’s Kyodo News Agency. Nippon will file its opening brief on Feb. 3. And both parties will conclude their claims by March 17 in the US Court of Appeals for the District of Columbia Circuit, Kyodo […]
Brown Strauss Steel names new chief executive
Denver-based service center Brown Strauss Steel has named Kris Farris as CEO, effective Jan. 1. Farris has also joined the company’s board of directors. He previously served as president and COO of Brown Strauss Steel. Farris is taking over from Ryan Secrist, who held the CEO role since 2013. Secrist is stepping down from position […]
Nucor carbon targets certified by GSCC
Nucor’s “ambitious” carbon targets by the end of the decade and beyond have been certified by the Global Steel Climate Council (GSCC). The Charlotte, N.C.-based steelmaker used a base year of 2023 for its science-based emissions targets (SBET). It set an SBET of 0.975 metric tons (mt) of CO2 emissions per mt of hot-rolled steel […]
SSAB halts talks with Feds on Miss. green steel plant
The Department of Energy's Industrial Demonstrations Program page states that it is no longer moving forward with SSAB.