GrafTech Says Operating Cash Flow to Likely Be at Low End of Target

GrafTech International Ltd., a maker of carbon and graphite products, said operating cash flow will likely be at the low end of its guidance for the first half of the year, due to factors including weak demand in the energy sector.

The company said electric arc furnace steel production in its North American and European markets has been hurt by high steel import levels.

In a deal announced in May, a Brookfield Asset Management Inc. affiliate agreed to acquire GrafTech in a deal that values the company at an estimated $692.8 million.

GrafTech previously lowered its guidance for earnings before interest, taxes, depreciation and amortization and operating cash flow.

In April, the company said it expected $30 million to $40 million for each metric in the first half of the year. GrafTech said Monday that results may be slightly below the targeted ranges.

GrafTech has been pursuing cost-cutting plans including layoffs, exiting some product lines and moving to a smaller headquarters.

Write to Josh Beckerman at [e-mail]

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