GrafTech Regains Compliance with NYSE Continued Listing Standards

Rhea-AI Summary

GrafTech International (NYSE: EAF) has successfully regained compliance with the New York Stock Exchange's continued listing standards. The company had previously received a notice on August 7, 2024, for non-compliance due to its average closing stock price falling below $1.00 over a 30-day trading period. As of October 31, 2024, GrafTech has maintained the required minimum share price of $1.00 over the subsequent 30-day trading period, ensuring its continued listing on the NYSE.

Positive

• Regained NYSE listing compliance, avoiding potential delisting risk
• Stock price recovery above $1.00 threshold

Negative

• Previous stock price decline below $1.00, indicating recent market weakness

Insights

Financial Analyst

Regaining NYSE compliance removes an immediate delisting risk for GrafTech, but underlying business challenges remain significant. The stock's recovery above $1.00 appears technical rather than fundamental, as the company continues to face severe headwinds in the graphite electrode market. With a market cap of just $486 million, down from several billion in recent years, this compliance achievement provides only temporary relief. The focus should now shift to operational performance, cash flow generation and market demand recovery to sustain the stock price above the minimum threshold long-term.

BROOKLYN HEIGHTS, Ohio--(BUSINESS WIRE)-- GrafTech International Ltd. (NYSE: EAF) (“GrafTech”, the “Company”, “we” or “our”) announced today that it received a letter from the New York Stock Exchange (the “NYSE”) notifying GrafTech that it has regained compliance with the NYSE’s continued listing standards criteria of a minimum share price as set forth in Section 802.01C of the NYSE Listed Company Manual (“Section 802.01C”).

As previously announced, on August 7, 2024, the NYSE notified GrafTech that it was not in compliance with the NYSE’s continued listing standards because the average closing price of the Company’s common stock per the notice was less than $1.00 per share over the consecutive 30 trading-day period ended August 5, 2024.

On November 1, 2024, the Company received confirmation from the NYSE that, as of October 31, 2024, the Company’s common stock had a closing share price of at least $1.00 and the Company had maintained an average closing share price of at least $1.00 over the 30 trading-day period ending on that date. Accordingly, the Company’s shares are no longer considered to be below the minimum share price requirement of Section 802.01C and, as a result, the Company has regained compliance with the NYSE continued listing standards and will continue to be traded on the NYSE.

About GrafTech

GrafTech International Ltd. is a leading manufacturer of high-quality graphite electrode products essential to the production of electric arc furnace steel and other ferrous and non-ferrous metals. The Company has a competitive portfolio of low-cost, ultra-high power graphite electrode manufacturing facilities, with some of the highest capacity facilities in the world. We are the only large-scale graphite electrode producer that is substantially vertically integrated into petroleum needle coke, our key raw material for graphite electrode manufacturing. This unique position provides us with competitive advantages in product quality and cost.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our current views with respect to, among other things, financial projections, plans and objectives of management for future operations, and future economic performance. Examples of forward-looking statements include, among others, statements we make regarding future estimated volume, pricing and revenue, anticipated levels of capital expenditures and cost of goods sold, anticipated reduction in our costs resulting from our cost rationalization initiatives and one-time costs of implementation and guidance relating to adjusted EBITDA and free cash flow. You can identify these forward-looking statements by the use of forward-looking words such as “will,” “may,” “plan,” “estimate,” “project,” “believe,” “anticipate,” “expect,” “foresee,” “intend,” “should,” “would,” “could,” “target,” “goal,” “continue to,” “positioned to,” “are confident,” or the negative versions of those words or other comparable words. Any forward-looking statements contained in this press release are based upon our historical performance and on our current plans, estimates and expectations considering information currently available to us. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Our expectations and targets are not predictions of actual performance and historically our performance has deviated, often significantly, from our expectations and targets. These forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business, prospects, growth strategy and liquidity. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to: risks and uncertainties associated with our ability to access the capital and credit markets could adversely affect our results of operations, cash flows and financial condition; and our ability to continue to meet NYSE continued listing standards. These factors should not be construed as exhaustive and should be read in conjunction with the Risk Factors and other cautionary statements that are included in our most recent Annual Report on Form 10-K and other filings with the U.S. Securities and Exchange Commission. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. Except as required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241101541150/en/

Michael Dillon

216-676-2000

investor.relations@graftech.com

Source: GrafTech International Ltd.

FAQ

When did GrafTech (EAF) regain NYSE listing compliance?

GrafTech regained NYSE listing compliance on October 31, 2024, after maintaining an average closing share price of at least $1.00 over a 30-day trading period.

Why was GrafTech (EAF) at risk of NYSE delisting?

GrafTech was at risk of delisting because its average closing stock price fell below $1.00 over a 30-day trading period ending August 5, 2024, violating NYSE's minimum share price requirement.

What is the minimum share price requirement for NYSE listing that GrafTech (EAF) had to meet?

Companies must maintain an average closing share price of at least $1.00 over a 30-day trading period to comply with NYSE's continued listing standards under Section 802.01C.