Published on 5 Aug 2022 on Benzinga via Yahoo Finance

GrafTech Stock Slips On Q2 Revenue Miss, Warning On Challenging Operating Environment

GrafTech International Ltd (NYSE: EAF) reported second-quarter sales growth of 9.9% year-over-year to $363.65 million, missing the consensus of $368.3 million.Adjusted EPS was $0.44, beating the consensus of $0.43.Sales volume of 42 thousand metric tons, a decrease of 1% Y/Y; and Production volume of 44 thousand MT, an increase of 1% Y/Y.The weighted-average realized price for LTA volume for the quarter was $9,600 per MT.Gross margin expanded 562 bps to 44.6%. The operating profit increased to $143.39 million (+175.3% Y/Y), and the margin expanded by 2,370 bps to 39.4%.GrafTech generated cash from operating activities year-to-date of $206.44 million, compared to $208.76 million a year ago. Adjusted free cash flow was $177.53 million.Adjusted EBITDA decreased by 1.1% Y/Y to $158.2 million, and margin contracted by 484 bps to 43.5%.As of June 30, 2022, GrafTech had cash and equivalents of $56 million and total debt of ~$920 million.Outlook: The company stated that the near-term outlook is becoming more challenging with higher raw material, energy, and logistics costs and the impact of the ongoing conflict between Ukraine and Russia.GrafTech expects FY22 capital expenditures of $70 million - $80 million.Price Action: EAF shares are trading lower by 6.45% at $7.18 on the last check Friday.

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