GrafTech reports Q3 adjusted EPS (13c), consensus (9c)

Reports Q3 revenue $131M, consensus $128.63M. “We grew volume, cut costs and generated positive cash flow in the third quarter and we are capitalizing on an opportunity to improve our liquidity position,” said CEO Timothy Flanagan. “This is evidence of our relentless focus on managing what is within our control. Our actions include aggressively addressing key elements of our cost structure and managing our working capital and capital expenditure levels to improve our cash position. Cash costs on a per metric ton basis declined 28% in Q3 on a year-over-year basis and we generated $20M of adjusted free cash flow during the quarter. On the commercial front, we continue to execute our customer engagement strategy, which contributed to a 9% year-over-year improvement in sales volume for the quarter and a 13% year-over-year improvement for the first nine months of the year. Furthermore, our announced financing agreement will provide GrafTech (EAF) with new money debt financing and maturity extension on our existing debt. This will provide additional liquidity and operational flexibility as we continue to manage through the near-term industry-wide challenges facing GrafTech. We look forward to strengthening our financial foundation and appreciate and are encouraged by the strong support of our financial partners, which highlights their confidence in the company’s future.”