GrafTech International Ltd. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in net sales, with revenues for the three months amounting to $130.7 million, down 18% from $159.0 million in the same period of 2023. For the nine months ended September 30, 2024, net sales totaled $404.6 million, a decrease of 16% compared to $483.4 million in the prior year.

The company's profitability was adversely affected, as it reported a gross loss of $12.1 million for Q3 2024, compared to a gross profit of $1.4 million in Q3 2023. The gross loss for the nine-month period was $9.4 million, a stark contrast to a gross profit of $55.9 million in the same period last year. Operating losses also widened, reaching $26.3 million for Q3 2024 and $50.3 million for the nine months, compared to losses of $18.1 million and $6.7 million, respectively, in the previous year.

The net loss for Q3 2024 was $36.1 million, an increase of 60% from $22.6 million in Q3 2023. For the nine-month period, the net loss escalated to $81.7 million, compared to $37.8 million in the same period of 2023. This resulted in a net loss per share of $0.14 for Q3 2024, compared to $0.09 in Q3 2023.

Strategically, GrafTech has undertaken cost rationalization initiatives, which included a reduction of its global workforce by approximately 130 employees, or 10% of its staff. The company also reported rationalization charges of $3.2 million related to severance and contract terminations, alongside non-cash write-offs of $2.7 million in inventory and fixed assets.

In terms of liquidity, GrafTech had $141.4 million in cash and cash equivalents as of September 30, 2024, down from $176.9 million at the end of 2023. The company’s total assets decreased to $1.1 billion, while total stockholders’ equity fell to a deficit of $9.0 million, down from $78.2 million at the end of 2023.

Looking ahead, GrafTech anticipates weak demand for graphite electrodes due to ongoing challenges in the steel industry and broader economic uncertainties. The company projects a low double-digit percentage point improvement in sales volume for the full year of 2024, with expected capital expenditures between $35 million and $40 million.