GrafTech Stock Gains On Q3 Beat, Clocks 33% Growth In Sales volume

GrafTech International Ltd EAF reported third-quarter sales growth of 21% year-over-year to $347.35 million, beating the consensus of $338.16 million.
Adjusted EPS improved to $0.45 from $0.36 in 3Q20, beating the consensus of $0.41.
Sales volume increased 33% Y/Y. Production volume increased 22% Y/Y.
The gross margin contracted 308 bps to 51%. The operating profit increased to $157.07 million (+16% Y/Y), and the margin contracted by 196 bps to 45.2%.
Adjusted EBITDA increased by 12.5% Y/Y to $172.17 million, and margin contracted by 378 bps to 49.6%.
GrafTech generated cash from operating activities year-to-date of $343.01 million, compared to $416.66 million a year ago, and adjusted Free cash flow of $369.3 million.
The company had cash and cash equivalents of $87 million and total debt of $1.1 billion at the end of the quarter.
GrafTech repurchased 4.3 million shares of stock for $46 million. The company's board approved a new $150 million stock repurchase program, in addition to the $13 million remaining under its previous stock repurchase program.
GrafTech board declared a quarterly cash dividend of $0.01 per share to stockholders of record on November 30, 2021, to be paid on December 31, 2021.
For FY21, capital expenditure range expectations are unchanged at $55 million - $65 million.
Price Action: EAF shares are trading higher by 10.8% at $12.38 on the last check Friday.

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