Exhibit 99.1
[LOGO GRAPHIC]
BRANDYWINE WEST, 1521 CONCORD PIKE, SUITE 301
WILMINGTON, DE 19803
N E W S R E L E A S E
NYSE: GTI CONTACT: Elise A. Garofalo
Director of Investor Relations
302-778-8227
GRAFTECH REPORTS 2002 FOURTH QUARTER RESULTS; EXPECTS SIGNIFICANT EARNINGS
IMPROVEMENT FOR 2003
Wilmington, DE - February 13, 2003 - GrafTech International Ltd. (GTI)
today announced financial results for the fourth quarter and year ended December
31, 2002. Net income excluding non-recurring items was breakeven for the 2002
fourth quarter and a net loss of $3 million or ($0.06) per share, for the year
2002. Net loss as reported was $2 million, or ($0.04) per share, for the 2002
fourth quarter and $18 million, or ($0.33) per share, for the year 2002.
Craig Shular, Chief Executive Officer of GTI, commented, "Although 2002
was extremely challenging from a financial perspective, we completed significant
milestones by aggressively repositioning our production platform, expanding our
lower cost facilities, redesigning our benefit plans and completing our global
tax and legal restructuring. We believe that these activities will allow us to
significantly improve earnings and return to profitability in 2003."
Net sales were $160 million for the 2002 fourth quarter, 3 percent
higher than for the 2001 fourth quarter, and $613 million for the year 2002, 6
percent lower than for the year 2001. Gross margin was 24.0 percent for the 2002
fourth quarter and 22.8 percent for the year 2002. This compares to gross margin
of 26.9 percent for the 2001 fourth quarter and 28.3 percent for the year 2001.
2002 fourth quarter net sales and gross margin improved from the 2002 third
quarter of $154 million and 22.3 percent, respectively.
Mr. Shular commented, "In 2002, we experienced a significant decline in
graphite electrode selling prices and persistently weak end markets for our
other businesses (except cathodes) due to global economic weakness, which more
than offset the impact of higher sales volumes in graphite electrodes and higher
net sales of cathodes. Year over year, we increased our graphite electrode sales
volume approximately 4 percent by increasing our market share at
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strategic global accounts and participating in the improvement of the North
American steel industry. Net sales of cathodes in 2002 were 17% higher than in
2001 as we completed the expansion of our cathode capacity in Brazil and were
successful in selling virtually all of our 2002 annual capacity."
Mr. Shular continued, "Performance improvements over the 2002 third
quarter results were driven by our graphite electrode and cathode businesses.
Graphite electrode sales volume in the 2002 fourth quarter met our expectations
at 47.3 thousand metric tons as compared to 45.9 thousand metric tons in the
2002 third quarter. Cathode sales volumes were strong primarily due to the
timing of customer projects. Average graphite electrode production cost per
metric ton improved to $1,644 versus $1,676 in the 2002 third quarter, as
expected, primarily due to improvements in productivity."
GRAPHITE POWER SYSTEMS (GPS) DIVISION
The GPS Division had net sales of $134 million for the 2002 fourth
quarter, 6 percent higher than for the 2001 fourth quarter due to stronger sales
volumes in all product lines. Graphite electrode sales volume in the 2002 fourth
quarter, 47.3 thousand metric tons, was 12 percent higher than in the 2001
fourth quarter. Average sales revenue per metric ton of graphite electrodes was
$2,113 in the 2002 fourth quarter, 6 percent lower than in the 2001 fourth
quarter, partially offsetting the impact of increased sales volumes. Net sales
of cathodes were 19 percent higher in the 2002 fourth quarter than in the 2001
fourth quarter, primarily due to higher sales volume.
Gross margin for the GPS Division was the highest for the year at 24.6
percent in the 2002 fourth quarter, an increase from 22.3 percent in the 2002
third quarter primarily due to improved graphite electrode production costs and
increased cathode sales volume. Gross margin of 27.3 percent in the 2001 fourth
quarter was higher than in the 2002 fourth quarter, primarily due to higher
graphite electrode prices.
ADVANCED ENERGY TECHNOLOGY (AET) DIVISION
Net sales for the AET Division were $26 million for the 2002 fourth
quarter, $3 million lower than for the 2001 fourth quarter primarily due to
lower sales of products to customers in the aerospace industry. Gross margin was
21.1 percent in the 2002 fourth quarter as compared to 25.3 percent in 2001
fourth quarter. The decline in gross margin was primarily due to lower sales.
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Accomplishments in the 2002 fourth quarter include:
o GRAFCELL(TM) advanced flexible graphite was designed into the Ballard
Power Systems fuel cell module used to power the recently announced
Honda FCX fuel cell vehicle.
o GTI received an eGraf(TM) thermal management component approval from
Pelago Networks for use in the telecommunications industry, marking a
new application for GTI's product.
NEW SEGMENT REPORTING
The previously announced alignment of GTI's businesses into three
distinct lines of business will impact segment reporting. GTI will begin
reporting under these lines of business as of the 2003 first quarter. The
synthetic graphite line of business includes graphite electrodes, cathodes and
advanced graphite materials. GTI will report profitability for this line of
business as a whole, consistent with the goal of maximizing its cash
profitability.
COST SAVINGS
GTI achieved $14 million of savings under its major cost savings plan
in 2002. In the 2002 fourth quarter, GTI successfully completed the first phase
of graphite electrode capacity expansion at its low cost production facility in
Monterrey, Mexico. Completing the expansion of this facility to 60,000 metric
tons of graphite electrode capacity is on schedule for the end of the 2003 first
quarter.
GTI will no longer disclose product specific costs, including graphite
electrode production cost per metric ton, under this savings plan. GTI will
continue to measure and report cost savings against its annual cost savings
targets and intends to report earnings per share improvements associated with
the savings.
Mr. Shular commented, "To date, under our cost savings plan, we have
streamlined our corporate structure, closed higher cost facilities, redesigned
benefit plans worldwide, outsourced certain financial functions, and initiated
new systems to simplify our operations. We will continue to aggressively pursue
opportunities to increase the productivity of our organization and reaffirm our
commitment on delivering approximately $80 million of annual recurring cost
savings by 2005. GTI has targeted $30 million of recurring annual cost savings
by the end of 2003, $16 million more than in 2002. We expect this increase in
savings to contribute approximately $0.18 per share to earnings improvement in
2003."
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In the 2003 first quarter, GTI announced that it will freeze its U.S.
qualified defined benefit plan effective March 31, 2003. GTI also redesigned its
U.S. employee healthcare benefits, primarily to align its benefit plans with
industry practices and control rapidly escalating medical costs. Effective
January 1, 2002, a new defined contribution plan was established for U.S.
employees.
CORPORATE
Selling, general and administrative expenses were $20 million in the
2002 fourth quarter, the same as in the 2002 third quarter and $1 million higher
than in the 2001 fourth quarter.
Interest expense was $15 million in the 2002 fourth quarter, the same
as in the 2002 third quarter. As targeted, 2002 interest expense was $60
million, the same as 2001. In January 2003, GTI entered into a 10-year interest
rate swap for a notional amount of $200 million to convert that amount of fixed
rate debt to variable rate debt. Of the $550 million of outstanding senior
notes, $450 million has been effectively converted to variable rate debt. In
January 2003, GTI also entered into 5-year interest rate caps for a notional
amount of $200 million. Interest expense for 2003 is targeted to be about $57 to
$60 million.
Net debt (total long- and short-term debt less cash and cash
equivalents, unamortized bond premium and fair value of hedged debt obligations)
was $706 million at the end of the 2002 fourth quarter, essentially the same as
at the end of the 2002 third quarter. Capital expenditures were $18 million for
the 2002 fourth quarter and $50 million for the year 2002.
Considering approximately $45 million of capital expenditures and $10
million of cash payments associated with previously announced restructuring
charges, net debt at the end of 2003 is expected to be approximately $740
million, excluding the impact of asset sales.
At December 31, 2002, GTI had drawn $10 million under its Euro 200
million revolving credit facility. For the 2002 fourth quarter, GTI was in
compliance with its senior secured bank credit facility covenants. In addition,
based on GTI's current business plans for 2003, GTI believes that it will remain
in compliance with its senior secured bank credit facility covenants.
The effective tax rate for the 2002 fourth quarter and the year 2002
was approximately 35 percent, excluding non-recurring items. The effective tax
rate for 2003 is expected to be about 40 percent.
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Non-recurring items in the 2002 fourth quarter included a $3 million
($2 million after tax) non-cash charge associated with the impairment of GTI's
investment in its joint venture with Jilin Carbon. This impairment results from
uncertainty about the completion and start-up of the planned graphite electrode
facility in Changchun, China due to the effects that the challenging 2002
graphite electrode industry conditions have had on GTI's joint venture partner.
We continue to work closely with Jilin on production alternatives. GTI also
recorded a $1 million (nil after tax) change in estimate for the restructuring
charge associated with the mothballing of our graphite electrode facility in
Caserta, Italy.
Other income, net, was $2 million in the 2002 fourth quarter,
attributable primarily to currency exchange benefits associated with euro
denominated intercompany loans, partially offset by other expenses.
Net income excluding non-recurring items was breakeven for the 2002
fourth quarter and a net loss of $3 million, or ($0.06) per share, for the year
2002. This net loss included significant other income, net, the effect of which
was partially offset by a non-cash compensation charge. These have the effect of
adding $8 million of income, net of tax ($11 million before tax), or $0.13 per
share, for the year 2002. Excluding these items, GTI's net loss was $11 million,
or ($0.19) per share, for the year.
OUTLOOK
Mr. Shular commented on GTI's outlook, saying, "We intend to return to
profitability in 2003, with earnings expected to be between $0.21 and $0.26 per
share. The increase of $0.40 to $0.45 per share over the loss of $0.19 per share
(excluding non-recurring items, other income, net, and non-cash compensation
charge) in 2002 will be driven by expected improvements in graphite electrode
volume and price and cost savings. 2003 estimated sales volume of graphite
electrodes is 190,000 metric tons and should result in full capacity
utilization. We have executed graphite electrode price increases in our major
markets for 2003 business. Average graphite electrode revenue per metric ton for
2003 is expected to be approximately $150 higher than in the 2002 fourth
quarter. Approximately one-third of that increase is associated with expected
benefits from net changes in currency rates."
Mr. Shular continued, "Our cathode business remains strong and our
capacity is virtually sold out for 2003. We do not foresee any recovery in 2003
over 2002 in the end markets for our remaining businesses, including the
semiconductor, electronics and aerospace industries, and
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therefore expect the financial performance of those businesses to remain similar
to 2002 levels. We are encouraged by the positive trends in the fuel cell
industry, including recent government commitments, and we will continue to drive
commercialization of our advantaged technologies."
"We expect earnings per share in the 2003 first quarter to be
approximately $0.01 per share. For the 2003 first quarter, we expect graphite
electrode sales volume to follow the historical seasonal pattern of being the
lowest volume quarter of the year. We expect this volume to be approximately
46,000 metric tons. Average graphite electrode revenue per metric ton is
expected to be approximately $2,220."
"Finally, the graphite electrode industry supply/demand balance remains
tight and we have announced further price increases in February 2003 for the
following markets: Europe - Euro 100/metric ton; Middle East, North Africa, Asia
and South America - $200/metric ton; and the United States $0.05/pound. As the
majority of our 2003 graphite electrode order book has been placed, the February
2003 price increases are expected to impact less than 10 percent of our 2003
business."
In conjunction with this earnings release, you are invited to listen to
our earnings call being held today at 1l:00 a.m. EDT. The dial-in number is
800-218-9073 for domestic and 303-262-2175 for international. If you are unable
to listen to the live call, the call will be archived and available for replay
within one day of the live call on our website at WWW.GRAFTECHINTERNATIONAL.COM
under the Investor Relations section.
GrafTech International Ltd. is one of the world's largest manufacturers
and providers of high quality natural and synthetic graphite and carbon based
products and services, offering energy solutions to industry-leading customers
worldwide engaged in the manufacture of steel, aluminum, silicon metal,
automotive products and electronics. We have 13 manufacturing facilities in 7
countries and are the leading manufacturer in all of our major product lines. We
produce graphite electrodes that are consumed primarily in the production of
steel in electric arc furnaces, the steel making technology used by all
"mini-mills," and for refining steel in ladle furnaces. We also produce carbon
electrodes that are consumed in the manufacture of silicon metal and cathodes
that are used in the production of aluminum. In addition, we develop and
manufacture natural graphite for use in materials and components for proton
exchange membrane fuel cells and fuel cell systems, thermal interface products
for computer, communications and other applications, fire retardant products for
transportation applications and building and construction materials
applications, industrial thermal management products for high temperature
process applications, and conductive products for batteries and supercapacitor
power storage applications. GRAFCELL(TM), GRAFGuard(TM), GRAFOIL(R),
GRAFSHIELD(TM) and eGraf(TM) are our trademarks. For additional information on
GrafTech International, call 302-778-8227 or visit our website at
WWW.GRAFTECHINTERNATIONAL.COM. For additional information on our subsidiary,
Advanced Energy Technology Inc., call 216-529-3777 or visit its website at
www.graftech.com. For additional information on our High Tech High Temp business
unit, call 216-676-2100 or visit its website at www.HT2.com.
NOTE: This news release and our earnings call may contain
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995. These include statements about such matters as: future
production and sales of steel, aluminum, fuel cells, electronic devices and
other products that incorporate our products or that are produced using our
products; future prices and sales of and demand for graphite electrodes and our
other products; future operational and financial performance of various
businesses; strategic plans; impacts of regional and global economic conditions;
interest rate management activities; restructuring, realignment, strategic
alliance,
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supply chain, technology development and collaboration, investment, acquisition,
joint venture, operating, integration, tax planning, rationalization, financial
and capital projects; legal matters and related costs; consulting fees and
related projects; potential offerings, sales and other actions regarding debt
and equity securities of us and our subsidiaries; and future costs, working
capital, revenues, business opportunities, values, debt levels, cash flows, cost
savings and reductions, margins, earnings and growth. We have no duty to update
these statements. Actual future events and circumstances (including future
performance, results and trends) could differ materially from those set forth in
these statements due to various factors. These factors include: the possibility
that global or regional economic conditions affecting our products may not
improve or may worsen due to geopolitical factors, governmental actions or other
causes; the possibility that anticipated additions to capacity for producing
steel in electric arc furnaces or anticipated reductions in graphite electrode
manufacturing capacity may not occur; the possibility that increased production
of steel in electric arc furnaces or reductions in graphite electrode
manufacturing capacity may not result in stable or increased demand for or
prices or sales volumes of graphite electrodes; the possibility that economic or
technological developments may adversely affect growth in the use of graphite
cathodes in lieu of carbon cathodes in the aluminum smelting process; the
possibility that anticipated additions to aluminum smelting capacity using
graphite cathodes may not occur or that increased production of graphite
cathodes by competitors may occur; the possibility that increased production of
aluminum may not result in stable or increased demand for or prices or sales
volume of graphite cathodes; the possibility of delays in or failure to achieve
widespread commercialization of proton exchange membrane, or "PEM," fuel cells
which use natural graphite materials and components and that manufacturers of
PEM fuel cells may obtain those materials or components used in them from other
sources; the possibility of delays in or failure to achieve successful
development and commercialization of new or improved electronic thermal
management or other products; the possibility of delays in meeting or failure to
meet product development milestones or delays in expanding or failure to expand
our manufacturing capacity; the possibility that we may be unable to protect our
intellectual property or may infringe the intellectual property rights of
others; the occurrence of unanticipated events or circumstances relating to
antitrust investigations or lawsuits or to lawsuits initiated by us against our
former parents; the possibility that expected cost savings will not be fully
realized; the occurrence of unanticipated events or circumstances relating to
health, safety or environmental compliance or remediation obligations, labor
relations, strategic plans or projects identified above; changes in interest or
currency exchange rates, in competitive conditions or in inflation affecting our
raw material, energy or other costs; the possibility of failure to satisfy
conditions or milestones to, or occurrence of breach of terms of our strategic
alliances with Jilin Carbon, Pechiney, Ballard, Conoco or others; the
possibility that changes in our financial performance may affect our compliance
with financial covenants or the amount of funds available for borrowing under
our revolving credit facility; and other risks and uncertainties, including
those detailed in our filings with the SEC, as well as future decisions by us.
References to future costs and cost savings are based on economic and industry
conditions underlying our current business plan (and assume annual graphite
electrode production and sales of 180 thousand metric tons and no change in
currency exchange rates) and are subject to the criteria, standards and
limitations detailed in our filings with the SEC. The statements in this news
release or made during our earnings call shall not be deemed to constitute an
admission as to any liability in connection with any claim or lawsuit. This news
release does not constitute an offer to sell or a solicitation of an offer to
buy any securities. References to street or analyst earnings estimates mean
those published by First Call, a service of the Thomson Financial Network.
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<caption>
GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in millions, except per share data)
(Unaudited)
DECEMBER 31, DECEMBER 31,
ASSETS 2001 2002
---- ----
<s>
CURRENT ASSETS:
Cash and cash equivalents $ 38 $ 11
Notes and accounts receivable 95 108
Inventories:
Raw materials and supplies 33 40
Work in process 111 103
Finished goods 33 30
------- -------
177 173
Prepaid expenses and deferred income taxes 12 19
------- -------
Total current assets 322 311
------- -------
Property, plant and equipment 931 1,009
Less: accumulated depreciation 650 700
------- -------
Net fixed assets 281 309
Deferred income taxes 140 175
Other assets 54 67
------- -------
Total assets $ 797 $ 862
======= =======
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable $ 101 $ 106
Short-term debt 7 18
Accrued income and other taxes 45 26
Other accrued liabilities 57 60
------- -------
Total current liabilities 210 210
------- -------
Long-term debt:
Carrying value 631 699
Fair value of hedged debt obligation - 8
Unamortized bond premium - 6
------- -------
Total long-term debt 631 713
------- -------
Other long-term obligations 231 255
Deferred income taxes 32 35
Minority stockholders' equity in consolidated entities 25 30
STOCKHOLDERS' DEFICIT:
Preferred stock, par value $.01, 10,000,000 shares authorized, none issued - -
Common stock, par value $.01, 100,000,000 shares authorized,
58,532,209 shares issued at December 31, 2001,
59,120,160 shares issued at December 31, 2002 1 1
Additional paid-in capital 629 636
Accumulated other comprehensive loss (269) (304)
Retained deficit (602) (620)
Less: cost of common stock held in treasury, 2,322,412 shares at December 31, 2001,
2,542,539 shares at December 31, 2002 (85) (88)
Less: common stock held in employee benefits trust, 426,400 shares at December 31, 2001
and December 31, 2002 (6) (6)
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Total stockholders' deficit (332) (381)
------- -------
Total liabilities and stockholders' deficit $ 797 $ 862
======= =======
</table>
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<table>
<caption>
GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in millions, except per share data)
(Unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
------------------ ------------------
2001 2002 2001 2002
---- ---- ---- ----
<s> <c> <c> <c> <c>
Net sales $ 155 $ 160 $ 654 $ 613
Cost of sales 113 121 469 473
-------- -------- -------- --------
Gross profit 42 39 185 140
Research and development 3 4 12 13
Selling, administrative and other expenses 19 20 78 78
Restricted stock vesting - - - 5
Other (income) expense, net 2 (2) 1 (16)
Global realignment and related expenses 2 - 2 3
Antitrust investigations and related lawsuits and claims - - 10 -
Restructuring charge and impairment loss on long-lived and other assets 34 4 92 23
Interest expense 11 15 60 60
-------- -------- -------- --------
71 41 255 166
-------- -------- -------- --------
Loss before provision for income taxes (29) (2) (70) (26)
Provision (benefit) for income taxes 26 - 15 (13)
-------- -------- -------- --------
Loss of consolidated entities before minority interest
and extraordinary items (55) (2) (85) (13)
Less: Minority stockholders' share of income - - 2 2
-------- -------- -------- --------
Loss before extraordinary items (55) (2) (87) (15)
Extraordinary items, net of tax - - - 3
-------- -------- -------- --------
Net Loss $ (55) $ (2) $ (87) $ (18)
======== ======== ======== ========
BASIC INCOME (LOSS) PER COMMON SHARE:
Loss before extraordinary item $ (0.98) $ (0.04) $ (1.75) $ (0.28)
Extraordinary items, net of tax - - - (0.05)
-------- -------- -------- --------
Net loss per share $ (0.98) $ (0.04) $ (1.75) $ (0.33)
======== ======== ======== ========
Weighted average common shares outstanding
(in thousands) 55,778 56,144 49,720 55,942
======== ======== ======== ========
DILUTED INCOME (LOSS) PER COMMON SHARE:
Loss before extraordinary item $ (0.98) $ (0.04) $ (1.75) $ (0.28)
Extraordinary items, net of tax - - - (0.05)
-------- -------- -------- --------
Net loss per share $ (0.98) $ (0.04) $ (1.75) $ (0.33)
======== ======== ======== ========
Weighted average common shares outstanding
(in thousands) 55,778 56,144 49,720 55,942
======== ======== ======== ========
</table>
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<caption>
GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions, except per share data)
(Unaudited)
Three Months Twelve Months
Ended December 31, Ended December 31,
------------------ ------------------
2001 2002 2001 2002
---- ---- ---- ----
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CASH FLOW FROM OPERATING ACTIVITIES:
Net loss $(55) $ (2) $(87) $ (18)
Extraordinary items, net of tax - - - 3
Non-cash charges to net loss:
Depreciation and amortization 9 7 36 29
Deferred income taxes 12 (1) (9) (28)
Antitrust investigations and related lawsuits and claims - - 10 -
Restructuring charge and impairment loss on long-lived and other assets 39 4 92 23
Restricted stock vesting - - - 5
Other non-cash charges (credits) 14 (7) 13 (24)
Working capital* 25 17 (32) (38)
Long-term assets and liabilities (8) (2) (6) (12)
---- ---- ---- -----
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 36 16 17 (60)
---- ---- ---- -----
CASH FLOW FROM INVESTING ACTIVITIES:
Capital expenditures (18) (18) (40) (50)
Purchase of investment (2) - (2) -
Sale of assets (1) - 3 -
---- ---- ---- -----
NET CASH USED IN INVESTING ACTIVITIES (21) (18) (39) (50)
---- ---- ---- -----
CASH FLOW FROM FINANCING ACTIVITIES:
Short-term debt borrowings (reductions), net 4 (3) 3 11
Revolving credit facility borrowings (reductions), net 10 (2) 7 (80)
Long-term debt borrowings - - 2 557
Long-term debt reductions (9) - (96) (398)
Minority interest investment - (1) 9 -
Dividends paid to minority shareholder - - - (1)
Proceeds from reset of interest rate swap - - - 10
Sale of common stock - - 94 1
Financing costs (1) - (4) (21)
---- ---- ---- -----
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 4 (6) 15 79
---- ---- ---- -----
Net increase (decrease) in cash and cash equivalents 19 (8) (7) (31)
Effect of exchange rate changes on cash and cash equivalents (1) 1 (2) 4
Cash and cash equivalents at beginning of period 20 18 47 38
---- ---- ---- -----
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 38 $ 11 $ 38 $ 11
==== ==== ==== =====
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Net cash paid during the periods for:
Interest expense $ 12 $ 2 $ 56 $ 48
==== ==== ==== =====
Income taxes $ 4 $ 1 $ 25 $ 24
==== ==== ==== =====
*Net change in working capital due to the following components:
(Increase)decrease in current assets:
Notes and accounts receivable $ 5 $ - $ 20 $ (6)
Inventories 13 - (20) 11
Prepaid expenses and other current assets - - - (2)
Increase (decrease) in accounts payable and accruals 15 18 2 (34)
Antitrust investigations and related lawsuits and claims, net (2) (1) (16) (3)
Restructuring payments (6) - (18) (4)
---- ---- ---- -----
WORKING CAPITAL $ 25 $ 17 $(32) $ (38)
==== ==== ==== =====
</table>
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<table>
<caption>
GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES
SEGMENT DATA SUMMARY
(Dollars in millions)
(Unaudited)
Three Months Ended
-----------------------------------------------------------
December 31, September 30, December 31,
2001 2002 2002
---- ---- ----
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NET SALES:
Graphite Power Systems $ 126 $ 126 $ 134
Advanced Energy Technology $ 29 $ 28 $ 26
----------- ----------- -----------
Total $ 155 $ 154 $ 160
COST OF SALES:
Graphite Power Systems $ 91 $ 98 $ 101
Advanced Energy Technology $ 22 $ 22 $ 20
----------- ----------- -----------
Total $ 113 $ 120 $ 121
GROSS PROFIT:
Graphite Power Systems $ 35 $ 28 $ 33
Advanced Energy Technology $ 7 $ 6 $ 6
----------- ----------- ------------
Total $ 42 $ 34 $ 39
GROSS PROFIT MARGIN:
Graphite Power Systems 27.3% 22.3% 24.6%
Advanced Energy Technology 25.3% 22.3% 21.1%
Combined 26.9% 22.3% 24.0%
KEY OPERATING DATA:
GE volume (thousands metric tons) 42.4 45.9 47.3
GE average selling price per metric ton $ 2,251 $ 2,107 $ 2,113
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