GrafTech International Ltd. (GTI, Wilmington, DE) announced financial results for the second quarter ended June 30, 2002. Net income before non-recurring charges was $3.0 million, or $0.05 per diluted share, for the 2002 second quarter. This compares to net income before non-recurring charges of $6.0 million, or $0.13 per diluted share, for the 2001 second quarter, and a net loss before non-recurring charges and tax benefits of $1.0 million, or $0.02 per diluted share, for the 2002 first quarter.
Non-recurring charges in the 2002 second quarter included a $13.0 million ($8.0 million after tax) non-cash charge associated primarily with the impairment of long-lived carbon electrode assets in Columbia, TN, and a $2.0 million ($1.0 million after tax) global realignment charge related to the completion of its corporate legal and tax restructuring. GTI also recorded a $1.0 million (before and after tax) non-cash, extraordinary charge to write off the capitalized debt issuance costs associated with bank loans repaid with the proceeds of the successful $150.0 million offering of senior notes in May 2002.
In the 2002 second quarter, GTI reported $13.0 million ($8.0 million after tax) of other income primarily due to currency exchange benefits associated with euro-denominated intercompany loans and a $5.0 million ($3.0 million after tax) non-cash compensation charge associated with the vesting of a 2002 employee stock grant. In the 2002 first quarter, GTI reported $3.0 million of other income ($2.0 million after tax) primarily due to a currency exchange gain on euro-denominated debt. Net sales were $161.0 million in the 2002 second quarter, six percent lower than in the 2001 second quarter and 17 percent higher than in the 2002 first quarter. Gross margin for GTI was 22.5 percent in the 2002 second quarter as compared to 29.9 percent in the 2001 second quarter and 22.3 percent in the 2002 first quarter.
