Graphite and carbon material science-based solutions provider GrafTech International Ltd. (GTI), Thursday said its profit for the first quarter slumped from a year ago on lower revenues reflecting weaker demand, amid economic slowdown.
First-quarter net income of GrafTech plunged to $8.47 million or $0.07 per share from $36.68 million or $0.34 per share in the year-ago quarter.
Excluding special items, net income was $4.83 million or $0.04 per share, compared to $59.59 million or $0.54 per share in the comparable quarter last year.
On average, six analysts polled by Thomson Reuters expected earnings of $0.01 per share for the quarter. Analysts' estimates typically exclude one-time items.
Quarterly sales dropped to $134.03 million from $290.00 million in the prior-year quarter, below Street estimates of $153.25 million.
Revenues reflect lower volumes associated with significantly reduced demand in both business segments.
Operating income was $8.42 million, compared to $83.09 million in the year-earlier quarter.
Gross profit declined to $32 million or 23.9%, compared to $108 million or 37.3% of sales in the first quarter of 2008, largely driven by lower sales volumes and unfavorable fixed cost absorption associated with reduced operating rates.
Craig Shular, Chief Executive Officer said, "We continue to expect 2009 to be very challenging for both of our business segments. First quarter results came in better than expected and we generated a small profit. We believe second quarter results will be similar to those in the first quarter; however, a second quarter loss is possible given the variability in customer demand."
GTI is currently trading at $8.87, up $0.31 or 3.62%, on a volume of 3.21 million shares.
For comments and feedback: editorial@rttnews.com