2023-05-01 15:35:10 ET
GrafTech International ( NYSE: EAF ) -9.1% in Monday's trading after the manufacturer of graphite electrodes and petroleum coke reported a surprising Q1 adjusted loss Friday before the market open.
The company reported a $7.4M loss, or $0.03/share, compared to profits totaling $50.3M in Q4 and $124.1M in the year-earlier quarter, and revenues plummeted 62% Y/Y to $366M, primarily reflecting lower sales volume driven by the residual impact of the suspension of operations in Monterrey, Mexico, that began near the end of Q3 2022.
Although the Monterrey plant resumed production during Q4, GrafTech ( EAF ) said the suspension coincided with a key commitment window for customer purchases covering the first six months of 2023, and the resulting uncertainty limited its ability to enter into new customer commitments for H1 2023.
"This is likely as bad as it gets" for GrafTech ( EAF ), Citi analyst Alex Hacking said, according to Bloomberg, but he remains cautious until the global steel and macro backdrop looks more supportive.
More on GrafTech International:
- See financial and valuation comparisons to sector peers
- SA analysis: Very Soft Heading Into 2023
- Stock price return: 14% loss YTD, 54% loss in the past 12 months
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GrafTech tumbles after swinging to Q1 loss; sales plunge 62%