Why GrafTech International Stock Is Falling Today
Graphite electrode manufacturer GrafTech International (NYSE: EAF) is still dealing with the ramifications of past issues while also signaling caution about the quarters to come. Investors aren't interested in riding out the uncertainty, sending shares of GrafTech down more than 20% on Friday.
GrafTech has a significant role in the global steelmaking industry. The company is the world's largest supplier of graphite electrodes, a key component in the electric-arc steel furnaces that are growing in popularity because they have relatively low costs and a more environmentally friendly process.
GrafTech announced its second-quarter financial results Friday. The company lost $0.02 per share in the quarter on revenue of $185.56 million, largely in line with analyst expectations for a $0.01-per-share loss on sales of $180 million. Net sales were down 49% year over year due to lower sales volumes. That's the residual impact of a suspension of operations in Monterrey, Mexico, last year over regulatory concerns.
Source Fool.com
