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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
 
FORM 10-Q

(Mark One)
 
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021
 
or
 
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to            
 
Commission File Number 1-5828
 
CARPENTER TECHNOLOGY CORPORATION
(Exact name of Registrant as specified in its Charter)

Delaware 23-0458500
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
1735 Market Street, 15th Floor 
Philadelphia, Pennsylvania19103
(Address of principal executive offices) (Zip Code)
610-208-2000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Common Stock, $5 Par ValueCRS New York Stock Exchange
Title of each classTrading Symbol Name of each exchange on which registered
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  No
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.  Yes   No



 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer
   
Non-accelerated filer(Do not check if a smaller reporting company)Smaller reporting company
Emerging growth company




If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
 
The number of shares outstanding of the issuer’s common stock as of April 26, 2021 was 48,032,384.


Table of Contents
CARPENTER TECHNOLOGY CORPORATION
FORM 10-Q
INDEX
 
   Page
 
    
  
    
  
    
  
    
  
    
  
    
  
    
  
    
 
    
 
    
 
    
 
    
 
    
 
    
 
 
    
  

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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
 
CARPENTER TECHNOLOGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)

($ in millions, except share data)March 31,
2021
June 30,
2020
ASSETS
Current assets:
Cash and cash equivalents$244.2 $193.1 
Accounts receivable, net279.2 292.3 
Inventories535.5 724.3 
Other current assets91.5 56.6 
Total current assets1,150.4 1,266.3 
Property, plant and equipment, net1,306.7 1,351.1 
Goodwill241.4 290.4 
Other intangibles, net44.9 52.1 
Deferred income taxes5.0 4.9 
Other assets262.6 262.4 
Total assets$3,011.0 $3,227.2 
LIABILITIES  
Current liabilities:  
Short-term credit agreement borrowings$ $170.0 
Accounts payable135.1 124.2 
Accrued liabilities134.2 157.9 
Total current liabilities269.3 452.1 
Long-term debt694.3 551.8 
Accrued pension liabilities281.2 399.5 
Accrued postretirement benefits138.5 137.4 
Deferred income taxes150.2 130.2 
Other liabilities96.3 110.5 
Total liabilities1,629.8 1,781.5 
Contingencies and commitments (see Note 12)
STOCKHOLDERS’ EQUITY  
Common stock — authorized 100,000,000 shares; issued 56,017,673 shares at March 31, 2021 and 56,012,748 shares at June 30, 2020; outstanding 48,032,334 shares at March 31, 2021 and 47,850,468 shares at June 30, 2020
280.1 280.1 
Capital in excess of par value319.4 321.4 
Reinvested earnings1,366.2 1,568.0 
Common stock in treasury (7,985,339 shares and 8,162,280 shares at March 31, 2021 and June 30, 2020, respectively), at cost
(317.5)(325.8)
Accumulated other comprehensive loss(267.0)(398.0)
Total stockholders' equity1,381.2 1,445.7 
Total liabilities and stockholders' equity$3,011.0 $3,227.2 

See accompanying notes to consolidated financial statements.
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CARPENTER TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

 

Three Months Ended
March 31,
Nine Months Ended
March 31,
 (in millions, except per share data)2021202020212020
Net sales$351.9 $585.4 $1,054.0 $1,743.8 
Cost of sales336.5 475.9 1,029.1 1,409.0 
Cost of sales - inventory write-downs from restructuring2.6  2.6  
Gross profit12.8 109.5 22.3 334.8 
Selling, general and administrative expenses47.8 50.8 132.3 159.0 
Restructuring and asset impairment charges5.0  15.0 2.3 
Goodwill impairment  52.8  
Operating (loss) income(40.0)58.7 (177.8)173.5 
Interest expense, net(8.9)(4.9)(23.5)(15.6)
Debt extinguishment losses, net
  (8.2) 
Other expense, net(8.3)(3.9)(9.4)(3.4)
(Loss) income before income taxes(57.2)49.9 (218.9)154.5 
Income tax (benefit) expense(16.7)10.0 (46.4)34.6 
Net (loss) income $(40.5)$39.9 $(172.5)$119.9 
(LOSS) EARNINGS PER COMMON SHARE:  
Basic$(0.84)$0.82 $(3.58)$2.47 
Diluted$(0.84)$0.82 $(3.58)$2.46 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:  
Basic48.3 48.1 48.3 48.0 
Diluted48.3 48.3 48.3 48.4 
 
See accompanying notes to consolidated financial statements.
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Table of Contents
CARPENTER TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)

 
Three Months Ended
March 31,
Nine Months Ended
March 31,
 ($ in millions)2021202020212020
Net (loss) income $(40.5)$39.9 $(172.5)$119.9 
Other comprehensive income (loss), net of tax    
Pension and postretirement benefits, net of tax of $(31.5), $(0.9), $(33.8) and $(3.1), respectively
98.1 3.1 105.3 9.1 
Net gain (loss) on derivative instruments, net of tax of $(0.5), $2.8, $(4.7) and $0.4, respectively
1.7 (8.9)14.9 (1.3)
Foreign currency translation(3.7)(13.2)10.8 (11.3)
Other comprehensive income (loss), net of tax96.1 (19.0)131.0 (3.5)
Comprehensive income (loss)$55.6 $20.9 $(41.5)$116.4 
 
See accompanying notes to consolidated financial statements.
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CARPENTER TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Nine Months Ended
March 31,
($ in millions)20212020
OPERATING ACTIVITIES  
Net (loss) income $(172.5)$119.9 
Adjustments to reconcile net (loss) income to net cash provided from operating activities:  
Debt extinguishment losses, net8.2  
Depreciation and amortization91.6 92.2 
Non-cash restructuring and asset impairment charges13.6 1.5 
Deferred income taxes(19.3)7.0 
Net pension expense20.3 11.5 
Goodwill impairment charge52.8  
Non-cash inventory write-downs from restructuring2.6  
Share-based compensation expense7.8 12.4 
Net loss on disposals of property, plant and equipment and assets held for sale0.1  
Changes in working capital and other:  
Accounts receivable13.8 7.6 
Inventories181.9 (85.2)
Other current assets(33.4)(5.2)
Accounts payable18.2 (26.9)
Accrued liabilities3.8 (33.4)
Pension plan contributions(10.9)(4.9)
Other postretirement plan contributions(1.6)(2.7)
Other, net(1.6)1.1 
Net cash provided from operating activities175.4 94.9 
INVESTING ACTIVITIES  
Purchases of property, plant, equipment and software(78.5)(144.0)
Proceeds from disposals of property, plant and equipment and assets held for sale1.6 0.3 
Proceeds from divestiture of business20.0  
Net cash used for investing activities(56.9)(143.7)
FINANCING ACTIVITIES  
Credit agreement borrowings 331.1 
Credit agreement repayments (181.1)
Net change in short-term credit agreement borrowings(170.0)0.3 
Payments on long-term debt(250.0) 
Proceeds from issuance of long-term debt, net of offering costs395.5  
Payments for debt extinguishment costs, net(8.2) 
Payments for debt issue costs(2.5) 
Dividends paid(29.3)(29.1)
Proceeds from stock options exercised0.2 4.3 
Withholding tax payments on share-based compensation awards(2.3)(7.8)
Net cash (used for) provided from financing activities(66.6)117.7 
Effect of exchange rate changes on cash and cash equivalents(0.8)(2.9)
INCREASE IN CASH AND CASH EQUIVALENTS51.1 66.0 
Cash and cash equivalents at beginning of period193.1 27.0 
Cash and cash equivalents at end of period$244.2 $93.0 
SUPPLEMENTAL CASH FLOW INFORMATION:  
Non-cash investing activities: Purchase of property, plant, equipment and software$4.2 $14.1 
See accompanying notes to consolidated financial statements.
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CARPENTER TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2021 AND 2020
(Unaudited)

 Common StockReinvested EarningsCommon Stock in TreasuryAccumulated Other Comprehensive (Loss) IncomeTotal Equity
($ in millions, except per share data)
Par Value of $5
Capital in Excess of Par Value
Balances at December 31, 2020$280.1 $317.0 $1,416.5 $(317.6)$(363.1)$1,332.9 
Net loss  (40.5)  (40.5)
Pension and postretirement benefits gain, net of tax    98.1 98.1 
Net gain on derivative instruments, net of tax    1.7 1.7 
Foreign currency translation    (3.7)(3.7)
Cash Dividends:     
     Common @ $0.20 per share
  (9.8)  (9.8)
Share-based compensation plans2.2  0.1  2.3 
Stock options exercised0.2    0.2 
Balances at March 31, 2021$280.1 $319.4 $1,366.2 $(317.5)$(267.0)$1,381.2 
 
 Common StockReinvested EarningsCommon Stock in TreasuryAccumulated Other Comprehensive (Loss) IncomeTotal Equity
($ in millions, except per share data)
Par Value of $5
Capital in Excess of Par Value
Balances at December 31, 2019$280.1 $322.1 $1,665.9 $(328.4)$(336.3)$1,603.4 
Net income  39.9   39.9 
Pension and postretirement benefits gain, net of tax    3.1 3.1 
Net loss on derivative instruments, net of tax    (8.9)(8.9)
Foreign currency translation    (13.2)(13.2)
Cash Dividends:     
     Common @ $0.20 per share
  (9.7)  (9.7)
Share-based compensation plans3.6  0.3  3.9 
Balances at March 31, 2020$280.1 $325.7 $1,696.1 $(328.1)$(355.3)$1,618.5 
 
See accompanying notes to consolidated financial statements.















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CARPENTER TECHNOLOGY CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2021 AND 2020
(Unaudited)

 Common StockReinvested EarningsCommon Stock in TreasuryAccumulated Other Comprehensive (Loss) IncomeTotal Equity
($ in millions, except per share data)
Par Value of $5
Capital in Excess of Par Value
Balances at June 30, 2020$280.1 $321.4 $1,568.0 $(325.8)$(398.0)$1,445.7 
Net loss  (172.5)  (172.5)
Pension and postretirement benefits gain, net of tax    105.3 105.3 
Net gain on derivative instruments, net of tax    14.9 14.9 
Foreign currency translation    10.8 10.8 
Cash Dividends:     
     Common @ $0.60 per share
  (29.3)  (29.3)
Share-based compensation plans(2.2) 8.3  6.1 
Stock options exercised0.2    0.2 
Balances at March 31, 2021$280.1 $319.4 $1,366.2 $(317.5)$(267.0)$1,381.2 


 Common StockReinvested EarningsCommon Stock in TreasuryAccumulated Other Comprehensive (Loss) IncomeTotal Equity
($ in millions, except per share data)
Par Value of $5
Capital in Excess of Par Value
Balances at June 30, 2019$279.0 $320.4 $1,605.3 $(332.8)$(351.8)$1,520.1 
Net income  119.9   119.9 
Pension and postretirement benefits gain, net of tax    9.1 9.1 
Net loss on derivative instruments, net of tax    (1.3)(1.3)
Foreign currency translation    (11.3)(11.3)
Cash Dividends:     
     Common @ $0.60 per share
  (29.1)  (29.1)
Share-based compensation plans0.5 1.6  4.7  6.8 
Stock options exercised0.6 3.7    4.3 
Balances at March 31, 2020$280.1 $325.7 $1,696.1 $(328.1)$(355.3)$1,618.5 

See accompanying notes to consolidated financial statements.
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Table of Contents
CARPENTER TECHNOLOGY CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
1.    Basis of Presentation
 
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments, consisting of normal and recurring adjustments, considered necessary for a fair statement of the results are reflected in the interim periods presented. The June 30, 2020 consolidated balance sheet data was derived from audited financial statements, but does not include all of the disclosures required by accounting principles generally accepted in the United States of America. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in Carpenter Technology’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020 (the “2020 Form 10-K”). Operating results for the three and nine months ended March 31, 2021 are not necessarily indicative of the operating results for any future period.

As used throughout this report, unless the context requires otherwise, the terms “Carpenter”, “Carpenter Technology”, the “Company”, “Registrant”, “Issuer”, “we” and “our” refer to Carpenter Technology Corporation.
 
2.    Restructuring and Asset Impairment Charges

Restructuring and asset impairment charges for the three and nine months ended March 31, 2021 were $5.0 million and $15.0 million, respectively. There were $0.0 million and $2.3 million, respectively, of restructuring and asset impairment charges for the three and nine months ended March 31, 2020.

During the third quarter ended March 31, 2021, additional restructuring actions were executed within the Company's Additive business in the Performance Engineered Products (“PEP”) segment. This included $4.9 million of non-cash impairment charges primarily related to certain long-lived assets and $0.6 million of charges primarily related to various personnel-related costs for severance payments, medical coverage and related items. These charges were partially offset by proceeds of $0.5 million related to the sale of certain production equipment from an idled powder production facility. Additionally as part of these restructuring actions, $2.6 million of inventory write-downs were recorded in cost of sales in the quarter ended March 31, 2021.

In the first quarter ended September 30, 2020, the Company initiated a restructuring plan to consolidate certain operations within the Additive business in the PEP segment. This included $8.7 million of non-cash impairment charges related primarily to certain long-lived assets and certain definite-lived intangible assets. The Company also recognized $1.3 million of charges primarily related to various personnel-related costs for severance payments, medical coverage and related items.

In the fourth quarter of fiscal year 2020, the Company approved actions to reduce overhead costs and position the Company to drive long-term, profitable growth. These actions included implementing a restructuring plan aimed at reducing fixed costs by eliminating 20 percent of global salaried positions across all business segments. The restructuring charge consisted primarily of various personnel-related costs for severance payments, medical coverage and related items. In addition, the Company also recorded non-cash asset impairment charges related to the closure of two domestic powder facilities in the PEP segment, non-cash asset impairment charges related to the decision to exit the Amega West business, and a non-cash write-down of software that will no longer be implemented at a particular business unit.

The reserve balances and activity for restructuring charges at March 31, 2021 were as follows:

($ in millions)Reserve Balance
Reserve balance at June 30, 2020$9.5 
Restructuring charges excluding non-cash impairments1.4 
Cash payments(8.8)
Reserve balance at March 31, 2021$2.1 
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Table of Contents
CARPENTER TECHNOLOGY CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
3.    Recent Accounting Pronouncements
 
Recently Issued Accounting Pronouncements - Adopted in current fiscal year

At this time there are no issued pronouncements adopted in the current fiscal year that would materially impact the Company.

Recently Issued Accounting Pronouncements - Pending Adoption

In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04 Reference Rate Reform (Topic 848). The guidance in ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform, if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating the potential impact of the adoption of ASU 2020-04 on the consolidated financial statements.

4.    Revenue

The Company recognizes revenue in accordance with Topic 606, Revenue from Contracts. The Company applies the five-step model in the FASB’s guidance, which requires the Company to: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, the Company satisfies a performance obligation.

The Company recognizes revenue when performance obligations under the terms of a customer purchase order or contract are satisfied. This occurs when control of the goods and services has transferred to the customer, which is generally determined when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product or the service is performed. Consignment transactions are arrangements where the Company transfers product to a customer location but retains ownership and control of such product until it is used by the customer. Revenue for consignment arrangements is recognized upon usage by the customer. Service revenue is recognized as the services are performed.

Each customer purchase order or contract for goods transferred has a single performance obligation for which revenue is recognized at a point in time. The standard terms and conditions of a customer purchase order include general rights of return and product warranty provisions related to nonconforming product. Depending on the circumstances, the product is either replaced or a quality adjustment is issued. Such warranties do not represent a separate performance obligation.

Each customer purchase order or contract sets forth the transaction price for the products and services purchased under that arrangement. Some customer arrangements include variable consideration, such as volume rebates, which generally depend upon the Company’s customers meeting specified performance criteria, such as a purchasing level over a period of time. The Company exercises judgment to estimate the most likely amount of variable consideration at each reporting date.

Revenue is measured as the amount of consideration the Company expects to receive in exchange for its product. The standard payment terms are 30 days. The Company has elected to use the practical expedient that permits a Company to not adjust for the effects of a significant financing component if it expects that at the contract inception, the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less.

Amounts billed to customers for shipping and handling activities to fulfill the Company’s promise to transfer the goods are included in revenues and costs incurred by the Company for the delivery of goods and are classified as cost of sales in the consolidated statement of operations. Shipping terms may vary for products shipped outside the United States depending on the mode of transportation, the country where the material is shipped and any agreements made with the customers.
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Table of Contents
CARPENTER TECHNOLOGY CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

Contract liabilities are recognized when the Company has received consideration from a customer to transfer goods or services at a future point in time when the Company performs under the purchase order or contract. Contract liabilities were $6.9 million and $12.3 million at March 31, 2021 and June 30, 2020, respectively, and are included in accrued liabilities on the consolidated balance sheets.

The Company has elected to use the practical expedient that permits the omission of disclosure for remaining performance obligations which are expected to be satisfied in one year or less.  

Disaggregation of Revenue

The Company operates in two business segments, Specialty Alloys Operations (“SAO”) and Performance Engineered Products (“PEP”). Revenue is disaggregated within these two business segments by diversified end-use markets and by geographical location. Comparative information of the Company’s overall revenues by end-use markets and geography for the three and nine months ended March 31, 2021 and 2020 were as follows:
End-Use Market DataThree Months Ended
March 31,
Nine Months Ended
March 31,
($ in millions)2021202020212020
Aerospace and Defense$163.0 $356.4 $509.4 $1,058.4 
Medical35.0 53.0 100.2 151.0 
Transportation36.9 33.5 97.7 111.9 
Energy23.1 32.7 70.3 103.2 
Industrial and Consumer67.2 80.1 206.6 231.4 
Distribution26.7 29.7 69.8 87.9 
Consolidated net sales$351.9 $585.4 $1,054.0 $1,743.8 

Geographic DataThree Months Ended
March 31,
Nine Months Ended
March 31,
($ in millions)2021202020212020
United States$224.6 $367.7 $657.5 $1,123.6 
Europe55.5 109.5 184.9 304.7 
Asia Pacific45.6 62.6 132.4 183.7 
Mexico11.0 17.8 34.8 55.3 
Canada9.3 15.1 24.2 44.4 
Other5.9 12.7 20.2 32.1 
Consolidated net sales$351.9 $585.4 $1,054.0 $1,743.8 

5.    Divestiture

On September 30, 2020, the Company divested the Amega West business for a total sale price of $20.0 million. In connection with the divestiture, the Company received $17.6 million of cash in the quarter ended September 30, 2020 and the remaining $2.4 million of cash in the quarter ended December 31, 2020. The operations of the Amega West business were historically included in our PEP segment and the Energy end-use market. The Company does not have any significant continuing involvement in the operations of Amega West after the divestiture.

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Table of Contents
CARPENTER TECHNOLOGY CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
6.    Earnings (Loss) per Common Share
 
The Company calculates basic and diluted (loss) earnings per share using the two class method. Under the two class method, (loss) earnings are allocated to common stock and participating securities (non-vested restricted shares and units that receive non-forfeitable dividends) according to their participation rights in dividends and undistributed earnings. The (loss) earnings available to each class of stock are divided by the weighted average number of outstanding shares for the period in each class. Diluted (loss) earnings per share assumes the issuance of common stock for all potentially dilutive share equivalents outstanding. For the three and nine months ended March 31, 2021, the Company incurred a net loss and accordingly excluded all potentially dilutive securities from the determination of diluted loss per share as their impact was anti-dilutive.

The calculations of basic and diluted (loss) earnings per common share for the three and nine months ended March 31, 2021 and 2020 were as follows: 
Three Months Ended
March 31,
Nine Months Ended
March 31,
(in millions, except per share data)2021202020212020
Net (loss) income$(40.5)$39.9 $(172.5)$119.9 
Less: dividends allocated to participating securities(0.1)(0.4)(0.3)(1.1)
(Loss) earnings available for common stockholders used in calculation of basic (loss) earnings per common share$(40.6)$39.5 $(172.8)$118.8 
Weighted average number of common shares outstanding, basic48.3 48.1 48.3 48.0 
Basic (loss) earnings per common share$(0.84)$0.82 $(3.58)$2.47 
Net (loss) income$(40.5)$39.9 $(172.5)$119.9 
Less: dividends allocated to participating securities(0.1)(0.4)(0.3)(1.1)
(Loss) earnings available for common stockholders used in calculation of diluted (loss) earnings per common share$(40.6)$39.5 $(172.8)$118.8 
Weighted average number of common shares outstanding, basic48.3 48.1 48.3 48.0 
Effect of shares issuable under share-based compensation plans 0.2  0.4 
Weighted average number of common shares outstanding, diluted48.3 48.3 48.3 48.4 
Diluted (loss) earnings per common share$(0.84)$0.82 $(3.58)$2.46 
 
The following awards issued under share-based compensation plans were excluded from the above calculations of diluted earnings per share because their effects were anti-dilutive:
 
Three Months Ended
March 31,
Nine Months Ended
March 31,
(in millions)2021202020212020
Stock options1.9 2.0 2.1 0.9 
 
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CARPENTER TECHNOLOGY CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
7.    Inventories
 
Inventories consisted of the following components as of March 31, 2021 and June 30, 2020:
 
($ in millions)March 31,
2021
June 30,
2020
Raw materials and supplies$160.9 $217.6 
Work in process239.6 312.3 
Finished and purchased products135.0 194.4 
Total inventories$535.5 $724.3