PARMA, Ohio, Feb. 25, 2011 - Graphite products maker GrafTech International Ltd. said Thursday its fourth-quarter net income more than doubled, helped by higher revenue at its industrial materials and engineered solutions businesses, as well as a tax benefit.
The company gave an earnings outlook for 2011, however, that fell short of analysts' forecasts and its stock fell.
For the three months ended Dec. 31, the company earned $77.6 million, or 60 cents per share, up from earnings of $34.3 million, or 28 cents per share, in the same period a year earlier.
The company said its adjusted earnings were $39 million, or 32 cents per share, in the latest quarter, excluding the effect of recent acquisitions and other items. A lower tax rate boosted earnings by about 6 cents per share.
Revenue rose 39 percent to $281.2 million from $202.4 million.
Analysts, on average, were expecting earnings of 26 cents per share on revenue of $247.7 million, according to a poll by FactSet.
GrafTech's industrial materials segment saw revenue jump to $234 million from $167 million in the fourth quarter of 2009, due mainly to higher graphite electrode sales volume, partially offset by lower average graphite electrode selling prices.
Sales at the company's engineered solutions segment totaled $47 million, up from $35 million a year earlier.
For 2011, the company forecast earnings before interest, taxes, amortization and depreciation in a range between $285 million and $315 million. Analysts were expecting about $356 million, according to FactSet.
"We expect 2011 results to benefit from improved volumes in our graphite electrode business; however, this impact will be partially offset due to pressure on average graphite electrode selling prices," the company said in a statement.
Shares fell $1.75, or 7.8 percent, to close Thursday at $20.68. In the past 52 weeks, the stock has traded between $11.91 and $21.69.
