GrafTech International Ltd. (NYSE:EAF) Q1 2023 Earnings Conference Call April 28, 2023 10:00 AM ET

Company Participants

Michael Dillon - Vice President of Investor Relations

Marcel Kessler - President & Chief Executive Officer

Jeremy Halford - Executive Vice President & Chief Operating Officer

Timothy Flanagan - Chief Financial Officer, Vice President of Finance & Treasurer

Conference Call Participants

Operator

Good day, ladies and gentlemen, and welcome to the GrafTech First Quarter 2023 Earnings Conference Call and Webcast. [Operator Instructions] This call is being recorded on Friday, April 28, 2023.

I would now like to turn the conference over to Mike Dillon. Please go ahead. Thank you.

Michael Dillon

Good morning, and welcome to GrafTech International's first quarter 2023 earnings call. On with me today are Marcel Kessler, Chief Executive Officer; Jeremy Alford, Chief Operating Officer; and Tim Flanigan, Chief Financial Officer. Marcel will begin with opening comments. Jeremy will then discuss safety, sales and operational matters. Tim will review our quarterly results and other financial details. Marcel will close with comments on our outlook. We will then open the call to questions.

Turning to our next slide. As a reminder, some of the matters discussed on this call may include forward-looking statements regarding, among other things, performance, trends and strategies. These statements are based on current expectations and are subject to risks and uncertainties. Factors that could cause actual results to differ materially from those indicated by forward-looking statements are shown here. We will also discuss certain non-GAAP financial measures, and these slides include the relevant non-GAAP reconciliations. You can find these slides in the Investor Relations section of our website at www.graftech.com. A replay of the call will also be available on our website.

I'll now turn the call over to Marcel.

Marcel Kessler

Good morning, everyone. Thank you for joining GrafTech's First Quarter Earnings Call. Let me last spoke to you in February. We shared our perspectives regarding 2023. We noted that there will be a significant impact on our performance due to 4 factors: one, the residual effect of the Monterrat suspension that occurred in late 2022. Second, the substantial shift in mix from LTA to non-LTE revenue; third, higher costs; and fourth, softness in grassfite electrode demand. We anticipate that the first quarter to be the earnings trough for the year, reflecting the lower sales volume and the highest cost per ton. We expected performance to gradually improve as we proceeded through 2023 and then further accelerate in 2024.