GrafTech posts higher sales, profits in Q1

April 29th, 2010
Carbon and graphite product manufacturer GrafTech International Ltd. said Thursday that improved global demand helped it to more than triple its first-quarter profit and top Wall Street expectations.
GrafTech's graphite electrodes are used by steel producers that are whirring back to life after reducing their output during the recession. Its strong performance reflects the strength of the manufacturing sector, which is helping to lead the economic recovery.
Graftech also announced that it will acquire Seadrift Coke LP, a dominant producer of needle coke, and C/G Electrods LLC, a graphite electrode manufacturer, for a total of $692 million. Needle coke is used to make electrodes.
Shares surged $3.79, or more than 28 percent, to close at $17.26 on heavy volume.
The company earned $34 million, or 28 cents per share, compared with $8 million, or 7 cents per share, in the first quarter of 2009. Excluding a one-time accounting gain, adjusted earnings in the quarter were $30 million, or 25 cents per share.
Net sales increased 61 percent, to $216 million from $134 million a year earlier.
Analysts surveyed by Thomson Reuters had expected profit of 20 cents per share on revenue of $210.2 million.
The company said it has refinanced its primary revolving credit line.