Carpenter Technology sees strongest quarterly operating income since 2013
August 5, 2019
Carpenter Technology Corporation, Philadelphia, Pennsylvania, USA, has announced its financial results for its fiscal fourth quarter and year ended June 30, 2019. For the quarter, the company reported net income of $48.9 million, up from $42.8 million in the same quarter 2018, while net income for the full year 2019 was reported at $167 million, down slightly from $188.5 million in 2018.
Among the fourth quarter’s highlights, it was reported that Specialty Alloys Operations (SAO) had delivered a 16.3% operating margin and 20.4% adjusted operating margin. Carpenter’s SAO segment manufactures premium alloys and stainless steel, and saw net sales of $532 million for the quarter (2018: $518.3 million) and $1,967.3 million for the full year 2019 (2018: $1,803.8 million).
Carpenter’s Performance Engineered Products segment, the segment of the company that includes the Dynamet titanium business and the Carpenter Powder Products (CPP) business, achieved net sales for the fourth quarter of the fiscal year 2019 of $126.4 million, up from $116.3 million in the fourth quarter of fiscal year 2018. For the full year 2019, the segment reported net sales of $479.8 million, up from $429.7 million in 2018.
“The fourth quarter marked the end to a successful year as we generated our strongest quarterly operating income performance since fiscal year 2013,” stated Tony Thene, Carpenter Technology’s President and CEO. “Key highlights of the quarter include SAO delivering 20.4% adjusted operating margin, positive total company free cash flow of $115.8 million, and our 12th consecutive quarter of year-over-year backlog growth.”
“The fourth quarter’s operating income results were driven by a continued strong product mix as we generated double digit sequential and year-over-year revenue growth in the aerospace and defence end-use market given our sub-market diversity and broad platform exposure,” he continued. “Also, growth in the medical end-use market remained robust as we continued to benefit from our direct customer relationships with leading OEMs and increasing demand for our high-value titanium solutions.”
“Our fiscal year 2019 performance demonstrates the value of strong execution of our commercial and manufacturing strategies which drove consistent year-over-year revenue and earnings growth in the aerospace and defence and medical end-use markets. During the year, we made significant progress on obtaining the necessary aerospace qualifications for our Athens facility, We also continued to look to the future and took innovative steps to strengthen our leadership position through targeted investments in key emerging technologies.”
“This past year we significantly advanced our Additive Manufacturing platform by adding powder lifecycle management solutions through the acquisition of LPW Technology Ltd,” Thene added. “In addition, the expansion of our soft magnetics capabilities remains on track as we seek to capitalise on the disruptive impact of electrification across multiple end-use markets.”
“Looking ahead, we are focused on advancing our solutions approach, capturing additional productivity and capacity gains through the Carpenter Operating Model, and investing in the future of our industry and our end-use markets. We believe the further execution of our strategy will enhance our long-term growth potential and drive sustainable long-term value creation for our customers and shareholders,” he concluded.