WYOMISSING, Pa.--(BUSINESS WIRE)--Jan. 15, 2013--
Carpenter Technology Corporation (NYSE:CRS) today reported that it
expects net sales, excluding surcharge, of $431 million for its second
fiscal quarter ended December 31, 2012. This compares to $441 million
reported in the first fiscal quarter of 2013, and is 30 percent higher
than the second quarter of fiscal year 2012. Carpenter continued to see
strong demand for its Premium and Ultra-Premium products sold into the
Aerospace and Energy markets, but saw weaker demand in lower value
product lines, which were impacted by current economic uncertainty.
Carpenter now expects second quarter earnings per diluted share to be
approximately $0.61 to $0.62, which is about 20 percent higher than the
prior fiscal second quarter, but below the $0.74 per diluted share
reported in the first quarter of fiscal year 2013. The earnings increase
versus Q2 2012 was driven primarily by the acquisition of Latrobe, which
is delivering higher than expected synergies, and improved overall
pricing/mix actions. The sequential reduction in earnings versus Q1 2013
is due to weaker Performance Engineered Products (PEP) segment
performance, softer demand for lower value mill products, and the impact
of production balancing within Specialty Alloys Operations (SAO).
“We continue to see strong end-market demand for our Premium and
Ultra-Premium products where we remain capacity constrained, and are
delivering above target near-term Latrobe synergies,” said William A.
Wulfsohn, President and Chief Executive Officer. “We also see
uncertainty in demand for lower value mill products and are performing
below plan in the PEP business segment. Therefore, we currently expect
full year operating income improvement of 20 to 30 percent versus our
last fiscal year. We are confident in the strategic actions we are
taking, and remain on track to deliver our mid-decade earnings target.”
The fiscal year 2013 earnings target excludes the anticipated financial
impact from selling the Latrobe distribution business, and one-time
costs associated with the inventory reduction initiative and footprint
optimization actions that will be outlined in further detail during the
upcoming investor call.
As previously announced, Carpenter will report its second quarter
results on Thursday, January 31, 2013 and host a conference call and
webcast at 10:00 a.m., Eastern Time on that day to discuss more fully
the results of operations, refine its full fiscal year targets and
further review management actions to drive its longer term strategy.
About Carpenter Technology
Carpenter produces and distributes premium alloys, including special
alloys, titanium alloys and powder metals, as well as stainless steels,
and alloy and tool steels. Information about Carpenter can be found on
the Internet at http://www.cartech.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Act of 1995. These
forward-looking statements are subject to risks and uncertainties that
could cause actual results to differ from those projected, expected,
anticipated or implied. The most significant of these uncertainties are
described in Carpenter’s filings with the Securities and Exchange
Commission including its annual report on Form 10-K for the year ended
June 30, 2012, the 10Q for the quarter ending September 30, 2012 and the
exhibits attached to those filing. They include but are not limited to:
(1) expectations with respect to the synergies, costs and other
anticipated financial impacts of the Latrobe acquisition transaction
could differ from actual synergies realized, costs incurred and
financial impacts experienced as a result of the transaction; (2) the
cyclical nature of the specialty materials business and certain end-use
markets, including aerospace, defense, industrial, transportation,
consumer, medical, and energy, or other influences on Carpenter’s
business such as new competitors, the consolidation of competitors,
customers, and suppliers or the transfer of manufacturing capacity from
the United States to foreign countries;(3) the ability of Carpenter to
achieve cost savings, productivity improvements or process changes; (4)
the ability to recoup increases in the cost of energy, raw materials,
freight or other factors; (5) domestic and foreign excess manufacturing
capacity for certain metals; (6) fluctuations in currency exchange
rates; (7) the degree of success of government trade actions; (8) the
valuation of the assets and liabilities in Carpenter’s pension trusts
and the accounting for pension plans; (9) possible labor disputes or
work stoppages; (10) the potential that our customers may substitute
alternate materials or adopt different manufacturing practices that
replace or limit the suitability of our products; (11) the ability to
successfully acquire and integrate acquisitions, including the Latrobe
acquisition; (12) the availability of credit facilities to Carpenter,
its customers or other members of the supply chain; (13) the ability to
obtain energy or raw materials, especially from suppliers located in
countries that may be subject to unstable political or economic
conditions; (14) Carpenter’s manufacturing processes are dependent upon
highly specialized equipment located primarily in facilities in Reading
and Latrobe, Pennsylvania for which there may be limited alternatives if
there are significant equipment failures or catastrophic event; and (15)
Carpenter’s future success depends on the continued service and
availability of key personnel, including members of our executive
management team, management, metallurgists and other skilled personnel
and the loss of these key personnel could affect our ability to perform
until suitable replacements are found. Any of these factors could have
an adverse and/or fluctuating effect on Carpenter’s results of
operations. The forward-looking statements in this document are intended
to be subject to the safe harbor protection provided by Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Carpenter undertakes no
obligation to update or revise any forward-looking statements.
Source: Carpenter Technology Corporation
Carpenter Technology Corporation
Media Inquiries:
William J.
Rudolph, Jr., 610-208-3892
wrudolph@cartech.com
or
Investor
Inquiries:
Michael A. Hajost, 610-208-3476
mhajost@cartech.com