GrafTech International Ltd. shares declined 8% to $10.35 after the company said it expected cost increases in 2022 despite exceeding Street expectations for the fourth quarter.
The graphite electrode products manufacturer said the expected cost increases would be driven by global inflationary pressures, particularly for third-party needle coke, energy and freight. The company said capital expenditures in 2022 are expected to be in the range of $70 million to $80 million.
The Brooklyn Heights, Ohio-based company reported net sales of $363.3 million in the fourth quarter, up from $338 million in the fourth quarter of 2020. Analysts polled by FactSet expected $356 million.
Profit for the quarter was $141.5 million, or per-share earnings of 54 cents. This was an increase from $125.1 million in profit, or per-share earnings of 47 cents, for the same period last year. An analyst polled by FactSet expected $112.7 million, or per-share earnings of 41 cents.
