Carpenter Technology Corporation, Philadelphia, Pennsylvania, USA, has announced financial results for its fiscal first quarter ended September 30, 2019. The company reported Q1 2020 net income of $41.2 million, a significant increase from $31.5 million in Q1 2019. Net sales for Q1 2020 were $585.4 million compared with $572.4 million in the first quarter of fiscal year 2019.
The Performance Engineered Products (PEP) division, which includes Carpenter’s Dynamet titanium business, Carpenter Powder Products business, Amega West and Carpenter Additive, reported net sales of $109.4 million, down slightly from $111.7 in Q1 2019.
In its Specialty Alloys Operations (SAO) division, comprised of Carpenter’s major alloy and stainless steel manufacturing operations, the company reported net sales of $491.1 million, up from $475.5 million in Q1 2019.
“Our first quarter results represent our 11th consecutive quarter of year-over-year earnings growth and our best first quarter operating income performance in six years,” stated Tony Thene, Carpenter Technology’s President and CEO. “Our solutions approach continues to drive a richer product mix and strong performance at SAO, where we delivered record first quarter operating income. In addition, we received one additional qualification for our Athens facility during the quarter and customer engagement levels remain high.”
“The first quarter also marked our 11th consecutive quarter of year-over-year backlog growth, including healthy increases in our key aerospace and defence and medical end-use markets,” he added. “During the first quarter, aerospace and defense sales excluding surcharge increased 19% to record first quarter levels, due to our diverse solutions portfolio across multiple attractive sub-markets. Sales excluding surcharge in the medical end-use market increased 11% over last year as we continue benefitting from our expanded OEM customer relationships and leading titanium solutions.”
“Moving forward, our strategic focus is centred on strong commercial execution and securing capacity gains and manufacturing improvements via the Carpenter Operating Model. We also continue to operate with a sharp eye on the future and ensuring we best position Carpenter Technology for sustainable long-term profitable growth,” he stated.
“To that end, we have built an end-to-end Additive Manufacturing platform and customer collaborations continue to rapidly increase. In addition, the expansion of our soft magnetics capabilities remains on target as we look to capitalise on our high-value portfolio and the expected disruptive impact of electrification. We believe these investments in critical emerging technologies are necessary to sustain our position as a leading solutions provider and critical supply chain partner for our customers in the years and decades to come,” he concluded.