Carpenter Technology eyes accelerated growth in fiscal year 2023
August 1, 2022
Carpenter Technology Corporation, headquartered in Philadelphia, Pennsylvania, USA, has announced financial results for its fiscal fourth quarter and year ended June 30, 2022. Net sales for the fourth quarter of 2022 were $563.8 million, compared with $421.6 million in the fourth quarter of 2021. This resulted in a net income of $2.6 million, up from -$57.1 million loss in Q4 2021. Overall, full year 2022 net sales were $1,836.3 million, up from $1,475.6 million in FY2021, with a net loss for the year reported at -$49.1 million, an improvement on the -$229.6 million loss reported for FY2021.
“Our fourth quarter results marked a successful end to the year and place us on strong ground to deliver accelerated growth in fiscal year 2023,” stated Tony Thene, Carpenter Technology’s president and CEO. “The quarter saw us return to a positive EPS as both the Specialty Alloy Operations (“SAO”) and Performance Engineered Products (“PEP”) segments outperformed our expectations. We also continued to expand our backlog across our end-use markets and secured another price increase on our transactional business as overall demand conditions across our end-use markets remain strong.”
Operating income for the fourth quarter of 2022 was $24.6 million compared to an operating loss of $70.7 million in the prior year period. Adjusted to exclude special items, operating income was $14.9 million in the recent fourth quarter compared to adjusted operating loss of $12.5 million in the same period a year ago. The improvement in operating income is reported to be the result of increased shipments as activity levels continued to ramp to meet improving market conditions in key end-use markets compared to the previous year.
“In the fourth quarter, our backlog grew by 29% on a sequential basis and 191% year-over-year. We also generated positive free cash flow of $65 million and finished the fiscal year with total liquidity of $448 million. The fourth quarter’s operating income results were driven by double digit sequential revenue growth in the Aerospace and Defense and Medical end-use markets.”
“Fiscal year 2022 proved to be a challenging but successful year,” Thene continued. “We navigated through an unforeseen outage of our Reading Press, continued COVID-19 isolations, a difficult hiring environment, and other supply chain challenges. But in addressing each of them, I believe we are emerging from it stronger and well-positioned for growth.”
“Looking ahead, we expect to see continued growth across our end-use markets, especially in Aerospace, Defense and Medical applications, where customers are still ramping to pre-pandemic levels. To capitalise on the demand in our core business, we are focused on achieving additional productivity and capacity gains through the Carpenter Operating Model. Further, our strong position in our core business is supported by our capabilities in key emerging areas including electrification and additive manufacturing that further support our long-term growth profile. We believe the continued execution of our strategy will drive sustainable long-term value creation for our customers and shareholders,” he concluded.
