GrafTech International Holdings Inc. cited a slowdown in global
steel production in reporting second-quarter earnings that
plunged from the same period last year.
GrafTech posted net income of $4.36 million in the three months
ended June 30, down 89.6 percent from $41.85 million a year
earlier on sales that fell 4.5 percent to $301.36 million.
Engineered Solutions segment reported record sales of $70.02
million, but its Industrial Materials segmentwhich is
responsible for graphite electrode and needle coke production
and accounts for a majority of the companys
businessreported second-quarter sales of $231.34 million,
down 11.8 percent from $262.29 million a year earlier.
executive officer Craig Shuler said the results were "in line
with expectations, in spite of a very challenging operating
environment." He said that slowing global steel production had
caused "overcapacity" in the graphite electrode industry,
resulting in lower prices and higher costs for producers.
The company reduced
its 2013 earnings guidance to a range of $145 million to $165
million from an April 5 forecast of $165 million to $195
million and an initial forecast of $175 million to $205 million
amm.com, April 25).