The recent quarterly results of GrafTech International have sent shares up nearly 18% since they were announced. With sales and gross profit down 5% and 47% year over year, this dramatic rise in share price may be confusing at first glance. So just why are GrafTech's shares off to the races in the face of dismal operating results?

The answer to this question lies in the company's proposed turnaround plans for its industrial metals segment. This was the weakest segment for the quarter and the primary driver of the poor quarterly results. The turnaround plan focuses on three areas: profitability, cash flow, and future growth. If the plan is successful, it should reverse the company's history of declining margins and profitability, which would lead to outsized gains for investors.

Judging from the large increase in share price, Wall Street appears optimistic about the company's turnaround plans. In the video below, Motley Fool analyst Blake Bos digs into GrafTech's results and gives investors the skinny on the company's turnaround plans.


3 Other Companies Set to Change Manufacturing Forever
GrafTech is continuing to develop a game changing material called graphene, but it could be years before the company possibly sees tangible results. Why wait years for a breakthrough when 3 companies are already capitalizing on a technology set to change manufacturing as we know it.  

With the U.S. relying on the rest of the world for such a large percentage of our goods, many investors are ready for the end of the "made in China" era. Well, it may be here. Read all about the biggest industry disrupters since the personal computer in 3 Stocks to Own for the New Industrial Revolution. Just click here to learn more.

The article How GrafTech International's Earnings Were Awesome & Awful originally appeared on Fool.com.

Blake Bos has no position in any stocks mentioned. The Motley Fool owns shares of GrafTech International Ltd.. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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