Tuesday, GrafTech International Ltd. (GTI), a manufacturer of graphite and carbon material science-based solutions, reported a slight decline in fourth quarter profit as revenue dropped 24% from last year.
The Parma, Ohio-based company recorded a fourth quarter net income of $34.3 million or $0.28 per share, down from $34.5 million or $0.29 per share in the same period last year.
Results for the prior year quarter include the unfavorable impact of the non-cash impairment of $23 million, after tax, associated with our investment in Seadrift Coke L.P.
On average, nine analysts polled by Thomson Reuters expected the company to earn $0.20 per share for the fourth quarter. Analysts' estimates typically exclude one-time items.
Net sales declined 24% to $202.3 million from $264.9 million in the same quarter last year. Analysts anticipated sales of $195.28 million for the quarter.
Segment-wise, sales in the company's Industrial Materials segment declined to $167 million from $219 million while Engineered Solutions segment reported a dip in sales to $35 million from $46 million in the year-ago period, due to lower sales volume associated with weak end market demand.
Gross profit for the quarter fell to $66.7 million or 33% of sales from $97.3 million or 36.8% of sales in the fourth quarter of 2008.
For the fiscal 2009, the company reported net income of $12.5 million or $0.10 per share, compared to $200.5 million or $1.74 per share a year-ago. Revenue declined to $659.1 million from $1.2 billion in the prior year.
Analysts expected earnings of $0.51 per share on revenue of $650.61 million for the full year.
Looking ahead, the company expects that the first quarter will be the weakest quarter of the year with operating income targeted to be in the range of $30 million to $34 million. A marginal improvement to earnings is anticipated in subsequent quarters, driven by a slight increase in Industrial Material volumes and the expectation that the Engineered Solutions segment will begin to recover in the second half of 2010.
GTI is currently trading at $11.77, down $0.71 or 5.69% on a volume of 1.77 million shares on the NYSE.
For comments and feedback: editorial@rttnews.com