Q: What is GrafTech International (EAF) Q2 2024 Earnings Call Transcript Summary?
**GrafTech International Ltd. (EAF) Q2 2024 Earnings Call Summary**
**Bullish Points:**
1. GrafTech is aggressively cutting costs without compromising quality, safety, or the environment.
2. The company is managing working capital and capital expenditure levels effectively.
3. GrafTech is proactively managing production to balance supply and demand.
4. The company is actively pursuing opportunities to diversify its business and support long-term growth.
5. GrafTech has resolved its largest LTA arbitration, removing a substantial risk to its financial position.
6. The company is on track to achieve $25 million of annualized cost savings from its initiatives.
7. GrafTech has seen an 18% reduction in cash costs per metric ton in the first half of 2024 compared to the first half of 2023.
8. The company is progressing its capabilities in the EV space, positioning itself well to participate in the growing demand for petroleum needle coke and synthetic graphite for anodes for lithium-ion batteries.
9. GrafTech remains well positioned to capitalize as the electrode demand recovers.
10. The company ended the quarter with $121 million of cash and more than $111 million of availability on the revolver, totaling over $230 million in liquidity.
**Bearish Points:**
1. Graphite electrode demand remains weak, and industrywide capacity utilization rates remain low.
2. Costs per ton are high due to the weak demand and low capacity utilization rates.
3. Pricing discipline has been somewhat sacrificed to support volume.
4. GrafTech and most others in the industry are operating their electro business at losses or low margins.
5. The global steel industry is constrained, with steel production outside of China essentially flat compared to the prior year.
6. Net sales in the second quarter decreased 26% compared to the second quarter of 2023.
7. The company had a net loss of $15 million or $0.06 per share in the second quarter of 2024.
8. Adjusted EBITDA was $14 million in the second quarter, compared to $26 million in the second quarter of 2023.
9. Industrywide demand for graphite electrodes in the near term is expected to remain weak with persistent pricing pressures.
10. There is an expected sequential increase in cash cost per metric ton for the second half of 2024.
For more information about GrafTech International Ltd.'s earnings call, you can read the relevant news: GrafTech International (EAF) Q2 2024 Earnings Call Transcript
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