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Carpenter Technology announced Q3 fiscal year 2019 results

Steel News - Published on Mon, 29 Apr 2019

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Carpenter Technology Corporation announced financial results for the fiscal third quarter ended March 31, 2019. For the quarter, the Company reported net income of USD 51.1 million, or USD 1.05 earnings per diluted share. The reported results included an USD 11.4 million, or USD 0.18 per share, benefit from an insurance recovery.

Mr Tony Thene, Carpenter Technology’s President and CEO said that “Our third quarter results reflect the continued momentum we are driving across our core business as we delivered our ninth consecutive quarter of year-over-year earnings growth. Our strong operational performance and healthy demand across our key end-use markets drove sequential volume growth and richer product mix. Demand signals remain strong as backlog levels continue to increase, marking the eleventh consecutive quarter of growth. We also continue to progress with obtaining the necessary qualifications for our Athensfacility and received four additional qualifications in the current quarter. From a commercial perspective, we generated sequential sales growth across four of our five end-use markets during the third quarter, which demonstrates our ability to capitalize on emerging demand and gain market share. In addition, backlog increased 9% sequentially and 44% compared to last year. This includes Aerospace and Defense where backlog increased across all of our major sub-markets. Customer engagement levels related to Athens qualifications remain high and we are working diligently with our partners to secure additional approvals and provide critical incremental capacity for the industry. Other key commercial highlights in the quarter include the Medical market where we delivered robust sequential and year-over-year growth due to our high-value offerings and expanded direct customer relationships.”

He added that “As we continue to drive our core business forward, we remain committed to maintaining a balance between executing in the short-term and investing for the long-term. Looking to the longer term, we continue to take innovative action in significant growth areas like soft magnetics and additive manufacturing to accelerate profitable revenue growth to deliver increasing value to shareholders in the years ahead.”

Financial Highlights
Q3 FY'19Q3 FY'18Q2 FY'19
Net Sales609.9572.2556.5
Net Sales Excluding Surcharge (a)503472.5449.4
Operating Income73.245.755.4
Operating Income Excluding Special Items (a)73.245.756.6
Net Income51.130.235.5
Cash Provided from Operating Activities1073.437.8
Free Cash Flow (a)-3734.5-90.9

(In USD Million)

Net sales for the third quarter of fiscal year 2019 were USD 609.9 million compared with USD 572.2 million in the third quarter of fiscal year 2018, an increase of USD 37.7 million (6.6 percent), on 1.4 percent lower volume. Net sales excluding surcharge were USD 503.0 million, an increase of USD 30.5 million (6.5 percent) from the same period a year ago.

Operating income was USD 73.2 million compared to USD 45.7 million in the prior year period. These results primarily reflect strong commercial execution and improved end-use market conditions compared to the prior year period. The current quarter’s results include an USD 11.4 million, or USD 0.18 per share, benefit related to an insurance recovery.

Cash provided from operating activities in the third quarter of fiscal year 2019 was USD 10.0 million, compared to USD 73.4 millionin the same quarter last year. The decrease in operating cash flow primarily reflects increased inventory partially offset by higher earnings in the current year quarter. Free cash flow in the third quarter of fiscal year 2019 was negative USD 37.0 million, compared to positive USD 34.5 million in the same quarter last year. The decrease in free cash flow was primarily due to lower cash from operating activities as well as increased capital expenditures in the current year quarter. Capital expenditures were USD 49.0 million in the third quarter of fiscal year 2019 compared to USD 25.2 million in the same quarter last year due to ongoing investment in target growth areas including additive manufacturing and soft magnetics.

Total liquidity, including cash and available revolver balance, was USD 285.9 million at the end of the third quarter of fiscal year 2019. This consisted of USD 18.9 million of cash and USD 267.0 million of available borrowings under the Company’s credit facility.

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Posted By : Ratan Singh on Mon, 29 Apr 2019
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