Shares of GrafTech International experienced a significant decline on Friday following the company’s Q2 financial report, which revealed a loss and a revised full-year outlook. The stock plunged by 16% to $4.375 during morning trading, adding to the 8.9% decline it has already faced this year.
GrafTech International, headquartered in Brooklyn Heights, Ohio, specializes in the production of graphite electrodes. For Q2, the company reported a loss of $7.85 million, or 3 cents per share, in contrast to a profit of $115 million, or 44 cents per share, during the same period last year.
After adjusting for certain one-time items, GrafTech International reported a net loss of 2 cents per share. Unfortunately, this performance fell short of analysts’ expectations. FactSet’s poll of analysts had projected a loss of only 1 cent per share.
Although the company’s sales declined by 49% to $185.6 million, it surpassed analysts’ forecast of $177.2 million, according to FactSet. GrafTech International attributed this drop in sales to the suspension of operations at its Monterrey, Mexico location last year.
Looking ahead, GrafTech International anticipates soft demand for graphite electrodes throughout the remainder of the year. As a result, the company has revised its sales volume guidance to a range of 95,000 to 105,000 metric tons, down from the previous range of 100,000 to 115,000 metric tons.
