Brief: Graftech Announces A Set Of Initiatives Designed To Reduce Cost Structure & Optimize Manufacturing Footprint

GrafTech International

14/02/2024 11:49

Feb 14 (Reuters) - Graftech International Ltd  EAF.N :
    * GRAFTECH REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS
    * ANTICIPATE A MODEST YEAR-OVER-YEAR IMPROVEMENT IN OUR
SALES
VOLUME FOR 2024, MOST NOTABLY IN Q1 OF 2024
    * EXPECT DEMAND FOR GRAPHITE ELECTRODES IN NEAR TERM WILL
REMAIN
WEAK
    * GRAFTECH: IN 2024 EXPERIENCING ONGOING SOFTNESS IN
COMMERCIAL
ENVIRONMENT, WITH GRAPHITE ELECTRODE DEMAND WEAK,PRICING
CONTINUING TO BE PRESSURED
    * QTRLY LOSS INCLUDES GOODWILL IMPAIRMENT CHARGE OF $171
MILLION &
LOWER OF COST OR MARKET INVENTORY VALUATION ADJUSTMENT OF $12MLN
    * QTRLY NET SALES $137.1 MILLION VERSUS $247.5 MILLION
    * Q4 REVENUE VIEW $141.2 MILLION -- LSEG IBES DATA
    * ANNOUNCED A SET OF INITIATIVES DESIGNED TO REDUCE OUR COST
STRUCTURE AND OPTIMIZE OUR MANUFACTURING FOOTPRINT
    * REDUCING COMPANY'S OVERHEAD STRUCTURE AND EXPENSES
    * SPECIFIC TO CAPITAL EXPENDITURES, FOR 2024 WE ANTICIPATE
SPENDING TO BE IN RANGE OF $35 MILLION TO $40 MILLION
    * GRAFTECH INTERNATIONAL -  INITIATIVES EXPECTED TO RESULT
IN
ANNUALIZED COST SAVINGS OF ABOUT $25 MILLION ONCE FULLY
IMPLEMENTED, EXCLUDING ONE-TIME COSTS
    * GRAFTECH INTERNATIONAL - DURING 2024, WE WILL CONTINUE TO
OPERATE THESE FACILITIES AT REDUCED LEVELS
    * GRAFTECH INTERNATIONAL: ANTICIPATED COST SAVINGS OF ABOUT
$15
MILLION EXPECTED TO REALIZED IN COST OF GOODS SOLD WITH
REMAINDER IN SELLING & ADMINISTRATIVE EXPENSES
    * GRAFTECH - INDEFINITELY SUSPENDING PRODUCTION ACTIVITIES
AT ST.
MARYS, PENNSYLVANIA FACILITY, WITH EXCEPTION OF GRAPHITE
ELECTRODE, PIN MACHINING
    * INDEFINITELY IDLING CERTAIN ASSETS WITHIN OUR REMAINING
GRAPHITE
ELECTRODE MANUFACTURING FOOTPRINT


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