Help Desk -
9958816305, 9810335381
Email
Password

Carpenter Technology Reports Fourth Quarter and Fiscal Year 2019 Results

Steel News - Published on Mon, 05 Aug 2019

Image Source: cartech.com
Carpenter Technology Corporation announced financial results for the fiscal fourth quarter and year ended June 30, 2019. For the quarter, the company reported net income of USD 48.9 million. Mr Tony Thene, Carpenter Technology’s President and CEO said that “The fourth quarter marked the end to a successful year as we generated our strongest quarterly operating income performance since fiscal year 2013. Key highlights of the quarter include SAO delivering 20.4% adjusted operating margin, positive total company free cash flow of USD 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 Defense end-use market given our sub-market diversity and broad platform exposure. 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.”

He added “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 Defense 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. In addition, the expansion of our soft magnetics capabilities remains on track as we seek to capitalize on the disruptive impact of electrification across multiple end-use markets.”

Net sales for the fourth quarter of fiscal year 2019 were USD 641.4 million compared with USD 618.0 million in the fourth quarter of fiscal year 2018, an increase of USD 23.4 million (4%), on 4% lower volume. Net sales excluding surcharge were USD 533.3 million, an increase of USD 38.8 million (8%) from the same period a year ago.

Operating income was USD 67.9 million compared to USD 60.0 million in the prior year period. These results primarily reflect strong commercial execution and improved market conditions in key end-use markets compared to the prior year period.

Cash provided from operating activities in the fourth quarter of fiscal year 2019 was USD 175.1 million, compared to USD 118.5 million in the same quarter last year. The increase in operating cash flow primarily reflects a reduction in inventory coupled with higher sales during the quarter. Free cash flow in the fourth quarter of fiscal year 2019 was USD 115.8 million, compared to USD 55.9 million in the same quarter last year. The increase in free cash flow was primarily due to higher cash from operating activities in the quarter. Capital expenditures were USD 49.7 million in the fourth quarter of fiscal year 2019 compared to USD 54.0 million in the same quarter last year.

Total liquidity, including cash and available revolver balance, was USD 401.3 million at the end of the fourth quarter of fiscal year 2019. This consisted of USD 27.0 million of cash and USD 374.3 million of available borrowings under the Company’s credit facility.

Source :

Posted By : Ratan Singh on Mon, 05 Aug 2019
Related News from Steel segment