UPDATE 3-GrafTech profit doubles, raises 2008 view; shares rise

(Adds conference call details, updates share movement, adds byline)

By Dhanya Ann Thoppil

BANGALORE, May 1 (Reuters) - GrafTech International Ltd (GTI.N: Quote, Profile, Research), a maker graphite electrodes, posted a two-fold increase in quarterly profit, beating Wall Street estimates, helped by higher product prices and reduced expenses, and raised its 2008 revenue outlook, sending its shares up to an eight-year high.

"We remain encouraged by global steel industry conditions and expect solid demand from our steel end markets... in 2008," CEO Craig Shular said in a statement.

The company makes graphite electrodes primarily used by steel mills, and sky-high production costs, strong demand and tight supplies have pushed global steel prices to new highs so far this year.

"They are passing through the higher raw material costs to the customers," Mark Parr an analyst with Keybanc Capital Markets said.

"Given that over 90 pct of their revenues are long-term contracts that go from year to year, the visibility of good pricing should be above average for the remainder of the year," Parr added.

Parr has a "buy" rating on the stock.

"We have been able to get ahead of a lot of these significant raw material increases and get price up and we have also been very aggressive on the cost front," CEO Shular said in a conference call with analysts.