Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What was the full-year benefit of the lower of cost or market (LCM) inventory adjustment for 2024, and how will it impact 2025? A: Rory O'Donnell, CFO, stated that the full-year benefit for 2025 from the LCM adjustment is expected to be about $16 million to $17 million.
Q: How is GrafTech planning to handle potential tariffs on imports from Mexico, and does the 60% volume commitment for 2025 account for these tariffs? A: CEO Timothy Flanagan explained that the company is prepared for various scenarios, including potential tariffs. GrafTech has flexibility in its supply chain to minimize impacts and will honor its 60% volume commitments, which are already agreed upon with customers.
Q: What has been the customer feedback on the proposed 15% price increase, and how does it compare to competitors? A: CEO Timothy Flanagan noted that while some customers focus solely on price, others understand the value GrafTech provides and are willing to engage. The price increase is necessary to maintain profitability and investment in the business.
Q: When will the price increases start reflecting in GrafTech's results, and what is the current trend in needle coke pricing? A: Price increases will start affecting results with deliveries in the second quarter of 2025. COO Jeremy Halford mentioned that needle coke prices remain stable, ranging from $1,000 to $1,300 per metric ton.
Q: How is GrafTech addressing market share recovery, and what is the strategy for customer engagement? A: CEO Timothy Flanagan emphasized ongoing efforts to engage with customers through technical services and solutions. The company is focused on regaining market share by providing value beyond just the product, targeting customers who appreciate this value.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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