Carpenter Technology Corporation (NYSE: CRS) (the “Company”) today
announced financial results for the fiscal second quarter ended
December 31, 2023. For the quarter, the Company reported net
income of $42.7 million, or $0.85 earnings per diluted share.
Second Quarter Fiscal Year 2024 Highlights
- Reported earnings per diluted share of $0.85
- Achieved operating income of $69.8 million, up from $69.0
million in the previous quarter, completing the second most
profitable first half on record
- Exceeded expectations in Specialty Alloys Operations (“SAO”)
segment with operating income of $83.3 million, up from $80.8
million in the previous quarter
- Reached adjusted operating margin of 20.0 percent in the SAO
segment, up from 19.4 percent in the previous quarter
- Generated $14.6 million of cash from operating activities
“In the second quarter of fiscal year 2024 we delivered another
strong performance, generating $69.8 million of operating income,”
said Tony R. Thene, President and CEO of Carpenter Technology.
“Looking ahead, we are projecting $171 million to $191 million in
operating income in the second half of fiscal year 2024. This would
result in the most profitable year on record with $310 million to
$330 million of operating income.”
“Further, our fiscal year 2024 projection would be a meaningful
step towards our fiscal year 2027 goal of doubling our fiscal year
2019 operating income. And with improving productivity and
expanding margins, we see opportunity to accelerate the attainment
of our fiscal year 2027 goal.”
Fiscal Year 2024 Outlook
- Unlocking capacity at key work centers, ramping to pre-COVID
production rates
- Projecting $74 million to $79 million in operating income in
the third quarter
- Expecting step up in profitability in the fourth quarter,
reaching $97 million to $112 million in operating income
- Projecting $310 million to $330 million in total operating
income for fiscal year 2024; would achieve the most profitable year
on record
Longer Term Fiscal Year 2027 Outlook
- Goal to double fiscal year 2019 operating income by fiscal year
2027 (communicated at May 2023 Investor Day)
- Target represents a 40% CAGR over the period from fiscal year
2023 to fiscal year 2027
- Significant progress towards goal expected in fiscal year
2024
- Strong market demand outlook for our broad portfolio of
specialized solutions
- Leading capabilities and capacity in place to achieve goal
- Expanding capacity via higher throughput while optimizing
product mix
- Opportunity to accelerate attainment of fiscal year 2027
goal
Financial Highlights
|
|
Q2 |
|
Q1 |
|
Q2 |
($ in
millions except per share amounts) |
|
FY2024 |
|
FY2024 |
|
FY2023 |
Net sales |
|
$ |
624.2 |
|
|
$ |
651.9 |
|
|
$ |
579.1 |
|
Net sales excluding surcharge
(a) |
|
$ |
485.3 |
|
|
$ |
492.8 |
|
|
$ |
420.8 |
|
Operating income |
|
$ |
69.8 |
|
|
$ |
69.0 |
|
|
$ |
22.6 |
|
Net income |
|
$ |
42.7 |
|
|
$ |
43.9 |
|
|
$ |
6.2 |
|
Earnings per diluted
share |
|
$ |
0.85 |
|
|
$ |
0.88 |
|
|
$ |
0.13 |
|
Net cash provided from (used
for) operating activities |
|
$ |
14.6 |
|
|
$ |
7.4 |
|
|
$ |
(86.4 |
) |
Adjusted free cash flow
(a) |
|
$ |
(10.7 |
) |
|
$ |
(14.6 |
) |
|
$ |
(103.9 |
) |
|
|
|
|
|
|
|
(a) Non-GAAP
financial measures explained in the attached tables |
Net sales for the second quarter of fiscal year 2024 were $624.2
million, compared with $579.1 million in the second quarter of
fiscal year 2023, an increase of $45.1 million (or 8 percent), on a
3 percent decrease in shipment volume. Net sales excluding
surcharge were $485.3 million, an increase of $64.5 million (or 15
percent) from the same period a year ago.
Operating income was $69.8 million compared to operating income
of $22.6 million in the prior year period. Earnings per diluted
share in the second quarter of fiscal year 2024 was $0.85 compared
to earnings of $0.13 per diluted share in the prior year second
quarter. These results primarily reflect higher sales prices,
strong commercial execution and improved end-use market conditions
compared to the prior year period.
Cash provided from operating activities in the second quarter of
fiscal year 2024 was $14.6 million compared to cash used for
operating activities of $86.4 million in the same quarter last
year. Adjusted free cash flow in the second quarter of fiscal year
2024 was negative $10.7 million, compared to negative $103.9
million in the same quarter last year. The operating cash flow and
adjusted free cash flow in the second quarter of fiscal year 2024
reflect improved earnings and less cash used for working capital
needs compared to the prior year period. Capital expenditures in
the second quarter of fiscal year 2024 were $25.3 million, compared
to $17.5 million in the same quarter last year.
Total liquidity, including cash and available revolver balance,
was $350.1 million at the end of the second quarter of fiscal year
2024. This consisted of $15.7 million of cash and $334.4 million of
available borrowing under the Company’s credit facility.
Conference Call and Webcast Presentation
Carpenter Technology will host a conference call and webcast
presentation today, January 25, 2024, at 10:00 a.m. ET, to discuss
the financial results of operations for the second quarter of
fiscal year 2024. Please dial +1 412-317-9259 for access to the
live conference call. Access to the live webcast will be available
at Carpenter Technology’s website
(http://www.carpentertechnology.com), and a replay will soon be
made available at http://www.carpentertechnology.com. Presentation
materials used during this conference call will be available for
viewing and download at http://www.carpentertechnology.com.
Non-GAAP Financial Measures
This press release includes discussions of financial measures
that have not been determined in accordance with U.S. Generally
Accepted Accounting Principles (“GAAP”). A reconciliation of the
non-GAAP financial measures to their most directly comparable
financial measures prepared in accordance with GAAP, accompanied by
reasons why the Company believes the non-GAAP measures are
important, are included in the attached schedules.
About Carpenter Technology
Carpenter Technology Corporation is a recognized leader in
high-performance specialty alloy-based materials and process
solutions for critical applications in the aerospace, defense,
medical, transportation, energy, industrial and consumer
electronics markets. Founded in 1889, Carpenter Technology has
evolved to become a pioneer in premium specialty alloys, including
titanium, nickel, and cobalt, as well as alloys specifically
engineered for additive manufacturing (AM) processes and soft
magnetics applications. More information about Carpenter Technology
can be found at www.carpentertechnology.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,
anticipated or implied. The most significant of these uncertainties
are described in Carpenter Technology's filings with the Securities
and Exchange Commission, including its report on Form 10-K for the
fiscal year ended June 30, 2023, Form 10-Q for the fiscal
quarter ended September 30, 2023, and the exhibits attached to
those filings. They include but are not limited to: (1) the
cyclical nature of the specialty materials business and certain
end-use markets, including aerospace, defense, medical,
transportation, energy, industrial and consumer, or other
influences on Carpenter Technology'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; (2) the ability of Carpenter
Technology to achieve cash generation, growth, earnings,
profitability, operating income, cost savings and reductions,
qualifications, productivity improvements or process changes; (3)
the ability to recoup increases in the cost of energy, raw
materials, freight or other factors; (4) domestic and foreign
excess manufacturing capacity for certain metals; (5) fluctuations
in currency exchange and interest rates; (6) the effect of
government trade actions; (7) the valuation of the assets and
liabilities in Carpenter Technology's pension trusts and the
accounting for pension plans; (8) possible labor disputes or work
stoppages; (9) the potential that our customers may substitute
alternate materials or adopt different manufacturing practices that
replace or limit the suitability of our products; (10) the ability
to successfully acquire and integrate acquisitions; (11) the
availability of credit facilities to Carpenter Technology, its
customers or other members of the supply chain; (12) the ability to
obtain energy or raw materials, especially from suppliers located
in countries that may be subject to unstable political or economic
conditions; (13) Carpenter Technology's manufacturing processes are
dependent upon highly specialized equipment located primarily in
facilities in Reading and Latrobe, Pennsylvania and Athens, Alabama
for which there may be limited alternatives if there are
significant equipment failures or a catastrophic event; (14) the
ability to hire and retain a qualified workforce and key personnel,
including members of the executive management team, management,
metallurgists and other skilled personnel; (15) fluctuations in oil
and gas prices and production; (16) the impact of potential cyber
attacks and information technology or data security breaches; (17)
the inability of suppliers to meet obligations due to supply chain
disruptions or otherwise; (18) the inability to meet increased
demand, production targets or commitments; (19) the ability to
manage the impacts of natural disasters, climate change, pandemics
and outbreaks of contagious diseases and other adverse public
health developments; and (20) geopolitical, economic, and
regulatory risks relating to our global business, including
geopolitical and diplomatic tensions, instabilities and conflicts,
such as the war in Ukraine and the war between Israel and HAMAS,
and Houthi attacks on commercial shipping vessels and other naval
vessels as well as compliance with U.S. and foreign trade and tax
laws, sanctions, embargoes and other regulations. Any of these
factors could have an adverse and/or fluctuating effect on
Carpenter Technology'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 (the "Securities Act"), and Section 21E of the
Securities Exchange Act of 1934, as amended. We caution you not to
place undue reliance on forward-looking statements, which speak
only as of the date of this press release or as of the dates
otherwise indicated in such forward-looking statements. Carpenter
Technology undertakes no obligation to update or revise any
forward-looking statements.
PRELIMINARYCONSOLIDATED STATEMENTS OF
OPERATIONS(in millions, except per share
data)(Unaudited) |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
NET SALES |
|
$ |
624.2 |
|
|
$ |
579.1 |
|
|
$ |
1,276.1 |
|
|
$ |
1,102.0 |
|
Cost of sales |
|
|
501.6 |
|
|
|
509.1 |
|
|
|
1,029.4 |
|
|
|
977.2 |
|
Gross profit |
|
|
122.6 |
|
|
|
70.0 |
|
|
|
246.7 |
|
|
|
124.8 |
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
52.8 |
|
|
|
47.4 |
|
|
|
107.9 |
|
|
|
93.9 |
|
Operating income |
|
|
69.8 |
|
|
|
22.6 |
|
|
|
138.8 |
|
|
|
30.9 |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
13.0 |
|
|
|
13.0 |
|
|
|
25.7 |
|
|
|
25.6 |
|
Other expense, net |
|
|
1.6 |
|
|
|
1.9 |
|
|
|
5.5 |
|
|
|
5.4 |
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
taxes |
|
|
55.2 |
|
|
|
7.7 |
|
|
|
107.6 |
|
|
|
(0.1 |
) |
Income tax expense |
|
|
12.5 |
|
|
|
1.5 |
|
|
|
21.0 |
|
|
|
0.5 |
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
|
$ |
42.7 |
|
|
$ |
6.2 |
|
|
$ |
86.6 |
|
|
$ |
(0.6 |
) |
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER COMMON
SHARE: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.86 |
|
|
$ |
0.13 |
|
|
$ |
1.75 |
|
|
$ |
(0.02 |
) |
Diluted |
|
$ |
0.85 |
|
|
$ |
0.13 |
|
|
$ |
1.73 |
|
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING: |
|
|
|
|
|
|
|
|
Basic |
|
|
49.7 |
|
|
|
48.8 |
|
|
|
49.4 |
|
|
|
48.7 |
|
Diluted |
|
|
50.2 |
|
|
|
49.0 |
|
|
|
50.0 |
|
|
|
48.7 |
|
|
PRELIMINARYCONSOLIDATED STATEMENTS OF CASH
FLOWS(in millions)(Unaudited) |
|
|
|
Six Months Ended |
|
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
OPERATING ACTIVITIES |
|
|
|
|
Net income (loss) |
|
$ |
86.6 |
|
|
$ |
(0.6 |
) |
Adjustments to reconcile net
income (loss) to net cash provided from (used for) operating
activities: |
|
|
|
|
Depreciation and amortization |
|
|
66.7 |
|
|
|
64.8 |
|
Deferred income taxes |
|
|
(1.0 |
) |
|
|
(0.9 |
) |
Net pension expense |
|
|
11.8 |
|
|
|
9.9 |
|
Share-based compensation expense |
|
|
8.5 |
|
|
|
7.1 |
|
Net loss on disposals of property, plant and equipment |
|
|
1.2 |
|
|
|
0.6 |
|
Changes in working capital and other: |
|
|
|
|
Accounts receivable |
|
|
23.9 |
|
|
|
(58.5 |
) |
Inventories |
|
|
(157.5 |
) |
|
|
(226.7 |
) |
Other current assets |
|
|
(25.4 |
) |
|
|
(4.1 |
) |
Accounts payable |
|
|
37.8 |
|
|
|
62.1 |
|
Accrued liabilities |
|
|
(26.8 |
) |
|
|
(12.1 |
) |
Pension plan contributions |
|
|
(4.8 |
) |
|
|
— |
|
Other postretirement plan contributions |
|
|
(0.7 |
) |
|
|
(1.5 |
) |
Other, net |
|
|
1.6 |
|
|
|
(4.6 |
) |
Net cash provided from (used for) operating activities |
|
|
21.9 |
|
|
|
(164.5 |
) |
INVESTING ACTIVITIES |
|
|
|
|
Purchases of property, plant, equipment and software |
|
|
(47.3 |
) |
|
|
(31.0 |
) |
Net cash used for investing activities |
|
|
(47.3 |
) |
|
|
(31.0 |
) |
FINANCING ACTIVITIES |
|
|
|
|
Short-term credit agreement borrowings, net change |
|
|
13.9 |
|
|
|
41.2 |
|
Credit agreement borrowings |
|
|
46.5 |
|
|
|
60.1 |
|
Credit agreement repayments |
|
|
(46.5 |
) |
|
|
(20.1 |
) |
Dividends paid |
|
|
(19.8 |
) |
|
|
(19.7 |
) |
Proceeds from stock options exercised |
|
|
19.4 |
|
|
|
— |
|
Withholding tax payments on share-based compensation awards |
|
|
(18.0 |
) |
|
|
(3.4 |
) |
Net cash (used for) provided from financing activities |
|
|
(4.5 |
) |
|
|
58.1 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
1.1 |
|
|
|
3.2 |
|
DECREASE IN CASH AND CASH
EQUIVALENTS |
|
|
(28.8 |
) |
|
|
(134.2 |
) |
Cash and cash equivalents at
beginning of year |
|
|
44.5 |
|
|
|
154.2 |
|
Cash and cash equivalents at
end of period |
|
$ |
15.7 |
|
|
$ |
20.0 |
|
|
PRELIMINARYCONSOLIDATED BALANCE
SHEETS(in millions)(Unaudited) |
|
|
|
December 31, |
|
June 30, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
15.7 |
|
|
$ |
44.5 |
|
Accounts receivable, net |
|
|
508.4 |
|
|
|
531.3 |
|
Inventories |
|
|
797.8 |
|
|
|
639.7 |
|
Other current assets |
|
|
88.3 |
|
|
|
66.4 |
|
Total current assets |
|
|
1,410.2 |
|
|
|
1,281.9 |
|
Property, plant, equipment and
software, net |
|
|
1,364.2 |
|
|
|
1,383.8 |
|
Goodwill |
|
|
241.4 |
|
|
|
241.4 |
|
Other intangibles, net |
|
|
25.4 |
|
|
|
28.7 |
|
Deferred income taxes |
|
|
6.7 |
|
|
|
6.6 |
|
Other assets |
|
|
111.3 |
|
|
|
111.5 |
|
Total assets |
|
$ |
3,159.2 |
|
|
$ |
3,053.9 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
Current liabilities: |
|
|
|
|
Short-term credit agreement borrowings |
|
$ |
13.9 |
|
|
$ |
— |
|
Accounts payable |
|
|
313.4 |
|
|
|
278.1 |
|
Accrued liabilities |
|
|
158.4 |
|
|
|
181.3 |
|
Total current liabilities |
|
|
485.7 |
|
|
|
459.4 |
|
Long-term debt |
|
|
693.6 |
|
|
|
693.0 |
|
Accrued pension
liabilities |
|
|
191.2 |
|
|
|
190.1 |
|
Accrued postretirement
benefits |
|
|
47.2 |
|
|
|
45.8 |
|
Deferred income taxes |
|
|
168.8 |
|
|
|
170.3 |
|
Other liabilities |
|
|
98.9 |
|
|
|
99.2 |
|
Total liabilities |
|
|
1,685.4 |
|
|
|
1,657.8 |
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
Common stock |
|
|
283.2 |
|
|
|
280.7 |
|
Capital in excess of par
value |
|
|
327.9 |
|
|
|
328.4 |
|
Reinvested earnings |
|
|
1,294.8 |
|
|
|
1,228.0 |
|
Common stock in treasury, at
cost |
|
|
(289.7 |
) |
|
|
(298.0 |
) |
Accumulated other
comprehensive loss |
|
|
(142.4 |
) |
|
|
(143.0 |
) |
Total stockholders' equity |
|
|
1,473.8 |
|
|
|
1,396.1 |
|
Total liabilities and stockholders' equity |
|
$ |
3,159.2 |
|
|
$ |
3,053.9 |
|
|
PRELIMINARYSEGMENT FINANCIAL
DATA(in millions, except pounds sold)(Unaudited) |
|
|
Three Months Ended |
|
Six Months Ended |
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Pounds sold (000): |
|
|
|
|
|
|
|
Specialty Alloys Operations |
|
50,114 |
|
|
|
49,442 |
|
|
|
100,104 |
|
|
|
94,006 |
|
Performance Engineered Products |
|
2,318 |
|
|
|
2,978 |
|
|
|
4,620 |
|
|
|
5,304 |
|
Intersegment |
|
(3,350 |
) |
|
|
(1,920 |
) |
|
|
(5,414 |
) |
|
|
(3,920 |
) |
Consolidated pounds sold |
|
49,082 |
|
|
|
50,500 |
|
|
|
99,310 |
|
|
|
95,390 |
|
|
|
|
|
|
|
|
|
Net sales: |
|
|
|
|
|
|
|
Specialty Alloys Operations |
|
|
|
|
|
|
|
Net sales excluding surcharge |
$ |
416.2 |
|
|
$ |
346.2 |
|
|
$ |
833.4 |
|
|
$ |
651.9 |
|
Surcharge |
|
133.2 |
|
|
|
149.6 |
|
|
|
286.0 |
|
|
|
291.3 |
|
Specialty Alloys Operations net sales |
|
549.4 |
|
|
|
495.8 |
|
|
|
1,119.4 |
|
|
|
943.2 |
|
|
|
|
|
|
|
|
|
Performance Engineered Products |
|
|
|
|
|
|
|
Net sales excluding surcharge |
|
87.9 |
|
|
|
98.0 |
|
|
|
181.0 |
|
|
|
185.6 |
|
Surcharge |
|
7.8 |
|
|
|
8.7 |
|
|
|
16.4 |
|
|
|
14.4 |
|
Performance Engineered Products net sales |
|
95.7 |
|
|
|
106.7 |
|
|
|
197.4 |
|
|
|
200.0 |
|
|
|
|
|
|
|
|
|
Intersegment |
|
|
|
|
|
|
|
Net sales excluding surcharge |
|
(18.8 |
) |
|
|
(23.4 |
) |
|
|
(36.3 |
) |
|
|
(41.0 |
) |
Surcharge |
|
(2.1 |
) |
|
|
— |
|
|
|
(4.4 |
) |
|
|
(0.2 |
) |
Intersegment net sales |
|
(20.9 |
) |
|
|
(23.4 |
) |
|
|
(40.7 |
) |
|
|
(41.2 |
) |
|
|
|
|
|
|
|
|
Consolidated net sales |
$ |
624.2 |
|
|
$ |
579.1 |
|
|
$ |
1,276.1 |
|
|
$ |
1,102.0 |
|
|
|
|
|
|
|
|
|
Operating income (loss): |
|
|
|
|
|
|
|
Specialty Alloys Operations |
$ |
83.3 |
|
|
$ |
30.3 |
|
|
$ |
164.1 |
|
|
$ |
50.2 |
|
Performance Engineered Products |
|
7.1 |
|
|
|
9.3 |
|
|
|
16.2 |
|
|
|
15.6 |
|
Corporate |
|
(20.7 |
) |
|
|
(16.4 |
) |
|
|
(42.0 |
) |
|
|
(33.5 |
) |
Intersegment |
|
0.1 |
|
|
|
(0.6 |
) |
|
|
0.5 |
|
|
|
(1.4 |
) |
Consolidated operating income |
$ |
69.8 |
|
|
$ |
22.6 |
|
|
$ |
138.8 |
|
|
$ |
30.9 |
|
The Company has two reportable segments, Specialty Alloys
Operations (“SAO”) and Performance Engineered Products (“PEP”).
The SAO segment is comprised of Carpenter's major premium alloy
and stainless steel manufacturing operations. This includes
operations performed at mills primarily in Reading and Latrobe,
Pennsylvania and surrounding areas as well as South Carolina and
Alabama.
The PEP segment is comprised of the Company’s differentiated
operations. This segment includes the Dynamet titanium business,
the Carpenter Additive business and the Latrobe and Mexico
distribution businesses. The businesses in the PEP segment are
managed with an entrepreneurial structure to promote flexibility
and agility to quickly respond to market dynamics. It is our belief
this model will ultimately drive overall revenue and profit growth.
The pounds sold data above for the PEP segment includes only the
Dynamet and Additive businesses.
Corporate costs are comprised of executive and director
compensation, and other corporate facilities and administrative
expenses not allocated to the segments. Also included are items
that management considers not representative of ongoing operations
and other specifically-identified income or expense items.
The service cost component of net pension expense, which
represents the estimated cost of future pension liabilities earned
associated with active employees, is included in the operating
results of the business segments. The residual net pension expense
is comprised of the expected return on plan assets, interest costs
on the projected benefit obligations of the plans, and amortization
of actuarial gains and losses and prior service costs and is
included in other expense, net.
PRELIMINARYNON-GAAP FINANCIAL
MEASURES(in millions, except per share
data)(Unaudited) |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
December 31, |
|
December 31, |
ADJUSTED OPERATING MARGIN EXCLUDING SURCHARGE REVENUE |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
624.2 |
|
|
$ |
579.1 |
|
|
$ |
1,276.1 |
|
|
$ |
1,102.0 |
|
Less: surcharge revenue |
|
|
138.9 |
|
|
|
158.3 |
|
|
|
298.0 |
|
|
|
305.5 |
|
Net sales excluding surcharge
revenue |
|
$ |
485.3 |
|
|
$ |
420.8 |
|
|
$ |
978.1 |
|
|
$ |
796.5 |
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
69.8 |
|
|
$ |
22.6 |
|
|
$ |
138.8 |
|
|
$ |
30.9 |
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
|
11.2 |
% |
|
|
3.9 |
% |
|
|
10.9 |
% |
|
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
Adjusted operating margin
excluding surcharge revenue |
|
|
14.4 |
% |
|
|
5.4 |
% |
|
|
14.2 |
% |
|
|
3.9 |
% |
ADJUSTED SEGMENT
OPERATING MARGIN EX. SURCHARGE REVENUE |
|
Three Months Ended |
|
Six Months Ended |
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
SAO |
|
PEP |
|
SAO |
|
PEP |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
549.4 |
|
|
$ |
495.8 |
|
|
$ |
95.7 |
|
|
$ |
106.7 |
|
|
$ |
1,119.4 |
|
|
$ |
943.2 |
|
|
$ |
197.4 |
|
|
$ |
200.0 |
|
Less: surcharge revenue |
|
|
133.2 |
|
|
|
149.6 |
|
|
|
7.8 |
|
|
|
8.7 |
|
|
|
286.0 |
|
|
|
291.3 |
|
|
|
16.4 |
|
|
|
14.4 |
|
Net sales excluding surcharge
revenue |
|
$ |
416.2 |
|
|
$ |
346.2 |
|
|
$ |
87.9 |
|
|
$ |
98.0 |
|
|
$ |
833.4 |
|
|
$ |
651.9 |
|
|
$ |
181.0 |
|
|
$ |
185.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
83.3 |
|
|
$ |
30.3 |
|
|
$ |
7.1 |
|
|
$ |
9.3 |
|
|
$ |
164.1 |
|
|
$ |
50.2 |
|
|
$ |
16.2 |
|
|
$ |
15.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
|
15.2 |
% |
|
|
6.1 |
% |
|
|
7.4 |
% |
|
|
8.7 |
% |
|
|
14.7 |
% |
|
|
5.3 |
% |
|
|
8.2 |
% |
|
|
7.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating margin
excluding surcharge revenue |
|
|
20.0 |
% |
|
|
8.8 |
% |
|
|
8.1 |
% |
|
|
9.5 |
% |
|
|
19.7 |
% |
|
|
7.7 |
% |
|
|
9.0 |
% |
|
|
8.4 |
% |
Management believes that removing the impact of raw material
surcharge from operating margin provides a more consistent basis
for comparing results of operations from period to period, thereby
permitting management to evaluate performance and investors to make
decisions based on the ongoing operations of the Company.
Management uses its results excluding these amounts to evaluate its
operating performance and to discuss its business with investment
institutions, the Company’s board of directors and others.
|
|
Three Months Ended |
|
Six Months Ended |
|
|
December 31, |
|
December 31, |
ADJUSTED FREE CASH FLOW |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Net cash provided from (used
for) operating activities |
|
$ |
14.6 |
|
|
$ |
(86.4 |
) |
|
$ |
21.9 |
|
|
$ |
(164.5 |
) |
Purchases of property, plant,
equipment and software |
|
|
(25.3 |
) |
|
|
(17.5 |
) |
|
|
(47.3 |
) |
|
|
(31.0 |
) |
Adjusted free cash flow |
|
$ |
(10.7 |
) |
|
$ |
(103.9 |
) |
|
$ |
(25.4 |
) |
|
$ |
(195.5 |
) |
Management believes that the adjusted free cash flow measure
provides useful information to investors regarding the Company's
financial condition because it is a measure of cash generated which
management evaluates for alternative uses. Historically, this
non-GAAP financial measure included cash used for dividends paid on
outstanding common stock and participating securities. Management
believes that excluding cash dividends paid from adjusted free cash
flow will provide a more direct comparison to operating cash flow,
a GAAP-defined financial measure. Fiscal year 2023 has been
reclassified to conform to the current presentation.
PRELIMINARYSUPPLEMENTAL
SCHEDULE(in millions)(Unaudited) |
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
December 31, |
|
December 31, |
NET SALES BY END-USE MARKET |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
End-Use Market Excluding
Surcharge Revenue: |
|
|
|
|
|
|
|
|
Aerospace and Defense |
|
$ |
246.7 |
|
|
$ |
200.4 |
|
|
$ |
507.8 |
|
|
$ |
383.8 |
|
Medical |
|
|
73.0 |
|
|
|
62.7 |
|
|
|
139.5 |
|
|
|
112.5 |
|
Transportation |
|
|
26.8 |
|
|
|
27.3 |
|
|
|
56.0 |
|
|
|
51.0 |
|
Energy |
|
|
36.8 |
|
|
|
22.6 |
|
|
|
66.0 |
|
|
|
40.9 |
|
Industrial and Consumer |
|
|
80.2 |
|
|
|
78.6 |
|
|
|
159.6 |
|
|
|
147.0 |
|
Distribution |
|
|
21.8 |
|
|
|
29.2 |
|
|
|
49.2 |
|
|
|
61.3 |
|
|
|
|
|
|
|
|
|
|
Total net sales excluding
surcharge revenue |
|
|
485.3 |
|
|
|
420.8 |
|
|
|
978.1 |
|
|
|
796.5 |
|
|
|
|
|
|
|
|
|
|
Surcharge revenue |
|
|
138.9 |
|
|
|
158.3 |
|
|
|
298.0 |
|
|
|
305.5 |
|
|
|
|
|
|
|
|
|
|
Total net sales |
|
$ |
624.2 |
|
|
$ |
579.1 |
|
|
$ |
1,276.1 |
|
|
$ |
1,102.0 |
|
|
|
Investor Inquiries:John Huyette+1
610-208-2061jhuyette@cartech.com |
Media Inquiries:Heather Beardsley+1
610-208-2278hbeardsley@cartech.com |
Carpenter Technology (NYSE:CRS)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Carpenter Technology (NYSE:CRS)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024