GrafTech International Limited has announced financial results for the second quarter ended June 30th 2012.
2012 second quarter review:
Net sales declined by 1% to USD 316 million versus USD 320 million in the second quarter of 2011.
EBITDA increased by 11% to USD 67 million versus USD 60 million in the second quarter of 2011.
Net income was USD 42 million or USD 0.29 per diluted share. This includes a USD 10 million non cash benefit of discrete tax items. Excluding the non cash tax benefit, second quarter 2012 net income increased 10% to USD 32 million or USD 0.22 per diluted share versus USD 29 million or USD 0.20 per diluted share, in the second quarter of 2011.
Net cash used in operating activities was USD 16 million versus USD 17 million used in the second quarter of 2011.
Net debt was USD 597 million as compared to USD 419 million at year end 2011. The increase was driven by higher borrowings related to the previously announced share buyback program that was successfully executed since the end of the first quarter of 2012. Also contributing to the increase were working capital investments and capital expenditures.
GrafTech executed its previously announced 10 million share repurchase program. During the second quarter of 2012, 8.8 million shares were purchased; the remaining shares were purchased in July 2012. The average purchase price for the 10 million shares repurchased was USD 10.17 per share.
In addition, the board of directors approved a new share repurchase program for up to 10 million shares of GrafTech common stock. GrafTech may purchase shares from time to time, with the approval of the Board of Directors, in the open market or through private transactions as market conditions warrant.
As discussed in the 2012 first quarter earnings call, Seadrift Coke has developed a super premium grade of needle coke and has successfully commercialized this breakthrough product in the second quarter of 2012.
Mr Craig Shular CEO of GrafTech said that "With the recently completed 10 million share buyback program, coupled with the two million shares that were repurchased in the fourth quarter of 2011, a total of 8.2% of our outstanding shares have been repurchased. This underscores our commitment to delivering long term sustainable value for our shareholders."
