Carpenter Technology Corporation (NYSE: CRS) (the “Company”) today
announced financial results for the fiscal fourth quarter and year
ended June 30, 2024. For the quarter, the Company reported
operating income of $108.3 million, and earnings per diluted share
of $1.85. Excluding special items discussed below, adjusted
operating income was $125.2 million and adjusted earnings per
diluted share was $1.82 for the current quarter.
Fourth Quarter Highlights
- Delivered $125.2
million of adjusted operating income, up 39 percent sequentially
and a record quarterly result
- Realized adjusted earnings per diluted share of $1.82
- Generated $169.5 million of cash from operating activities, or
$142.4 million of adjusted free cash flow
- Increased net sales excluding surcharge 15 percent
sequentially, driven by increased sales in Aerospace and Defense
and Medical end-use markets
- Exceeded expectations in Specialty Alloys Operations (“SAO”)
segment with operating income of $140.9 million, up 36 percent
sequentially
- Delivered adjusting operating margin of 25.2 percent in the SAO
segment, up from 21.4 percent in the previous quarter
- Completed most profitable year on record, with $354.1 million
in total adjusted operating income in fiscal year 2024, up 166
percent over fiscal year 2023
Fiscal Year 2025 Outlook
- Expect operating
income to be in the range of $460 million to $500 million, pulling
forward financial goal 2 years from fiscal year 2027 to fiscal year
2025
- With operating
income guidance, expect to generate $250 million to $300 million in
adjusted free cash flow, which represents approximately 85 percent
conversion rate
- For first quarter of
fiscal year 2025, anticipate between $114 million and $120 million
in operating income
- Well positioned for
continued growth beyond fiscal year 2025 with strong market demand
outlook for our broad portfolio of specialized solutions,
increasing productivity, optimizing product mix and pricing
actions
Share Repurchase Program
- Board of Directors
authorized a share repurchase program of up to $400 million
- Will target
offsetting dilution and taking advantage of strategic market
opportunities
- Repurchases will be
made from time to time at the Company’s discretion, based on
general market conditions and the market price of its common
stock
“In the fourth quarter of fiscal year 2024 we exceeded our
previous guidance, generating $125.2 million of adjusted operating
income,” said Tony R. Thene, President and CEO of Carpenter
Technology. “The record fourth quarter performance completed the
most profitable year in Carpenter Technology’s history, achieving
$354.1 million in adjusted operating income in fiscal year 2024.
Further, we generated $142.4 million in adjusted free cash flow in
the fourth quarter, raising the total adjusted free cash flow to
$179.0 million for the full fiscal year.”
“We continue to drive earnings momentum through improved
productivity, product mix optimization and pricing actions.
Notably, the SAO segment generated $140.9 million in operating
income with adjusted operating margin of 25.2 percent, on 13
percent higher sequential volumes.”
“With our operating momentum, we are pulling forward our fiscal
year 2027 goal again, expecting to achieve $460 million to $500
million in operating income in fiscal year 2025. Having just
realized over 60 percent of our goal in fiscal year 2024, we are
accelerating a four-year goal into a two-year goal. And we expect a
strong start to fiscal year 2025, with first quarter operating
income in the range of $114 million to $120 million.”
“Further, we expect to generate $250 million to $300 million in
adjusted free cash flow in fiscal year 2025. With a strong balance
sheet and meaningful adjusted free cash flow, we will continue to
take a balanced approach to capital allocation: sustaining our
current asset base to achieve our targets, investing in incremental
growth initiatives, and returning cash to shareholders. To that
end, we announced today that our Board of Directors approved a
share repurchase program of up to $400 million.”
“Carpenter Technology continues to exceed performance and
outlook expectations. Having just completed a historic fourth
quarter and fiscal year 2024, we are well positioned to achieve our
accelerated goals and believe our earnings growth journey will
extend far beyond fiscal year 2025.”
Financial Highlights
| |
|
Q4 |
|
Q4 |
|
YTD |
|
YTD |
| ($ in
millions, except per share amounts) |
|
FY2024 |
|
FY2023 |
|
FY2024 |
|
FY2023 |
|
Net sales |
|
$ |
798.7 |
|
$ |
758.1 |
|
$ |
2,759.7 |
|
$ |
2,550.3 |
|
| Net sales excluding surcharge
(a) |
|
$ |
635.8 |
|
$ |
560.0 |
|
$ |
2,167.7 |
|
$ |
1,848.0 |
|
| Operating income |
|
$ |
108.3 |
|
$ |
62.9 |
|
$ |
323.1 |
|
$ |
133.1 |
|
| Adjusted operating income
excluding special items (a) |
|
$ |
125.2 |
|
$ |
62.9 |
|
$ |
354.1 |
|
$ |
133.1 |
|
| Net income |
|
$ |
93.6 |
|
$ |
38.4 |
|
$ |
186.5 |
|
$ |
56.4 |
|
| Earnings per diluted
share |
|
$ |
1.85 |
|
$ |
0.78 |
|
$ |
3.70 |
|
$ |
1.14 |
|
| Adjusted earnings per diluted
share (a) |
|
$ |
1.82 |
|
$ |
0.78 |
|
$ |
4.74 |
|
$ |
1.14 |
|
| Net cash provided from
operating activities |
|
$ |
169.5 |
|
$ |
174.9 |
|
$ |
274.9 |
|
$ |
14.7 |
|
| Adjusted free cash flow
(a) |
|
$ |
142.4 |
|
$ |
144.1 |
|
$ |
179.0 |
|
$ |
(67.6 |
) |
| |
|
|
|
|
|
|
|
|
| (a) non-GAAP
financial measures explained in the attached tables |
|
|
| |
|
|
Net sales for the fourth quarter of fiscal year 2024 were $798.7
million compared with $758.1 million in the fourth quarter of
fiscal year 2023, an increase of $40.6 million (or 5 percent), on 8
percent lower shipment volume. Net sales excluding surcharge were
$635.8 million, an increase of $75.8 million (or 14 percent) from
the same period a year ago.
Operating income for the fourth quarter of fiscal year 2024 was
$108.3 million compared to operating income of $62.9 million in the
prior year period. Adjusted operating income excluding special
items was $125.2 million in the fourth quarter of fiscal year 2024.
Earnings for the fourth quarter of fiscal year 2024 was $1.85 per
diluted share compared to $0.78 per diluted share in the prior year
quarter. Excluding special items, adjusted earnings per diluted
share in the fourth quarter of fiscal year 2024 was $1.82. These
results compared to the prior year reflect ongoing improvement in
product mix, higher realized prices, as well as expanded operating
efficiencies.
Cash provided from operating activities in the fourth quarter of
fiscal year 2024 was $169.5 million, compared to $174.9 million in
the same quarter last year. Adjusted free cash flow in the fourth
quarter of fiscal year 2024 was $142.4 million, compared to $144.1
million in the same quarter last year. The strong operating
cash flow and adjusted free cash flow results primarily reflect
higher earnings partially offset by working capital changes
compared to the prior year period. Capital expenditures were $27.7
million in the fourth quarter of fiscal year 2024 compared to $30.8
million in the same quarter last year.
Total liquidity, including cash and available revolver balance,
was $547.9 million at the end of the fourth quarter of fiscal year
2024. This consisted of $199.1 million of cash and $348.8 million
of available borrowings under the Company’s Credit Facility.
Share Repurchase Program
Carpenter Technology’s Board of Directors authorized a share
repurchase program of up to $400 million of its outstanding common
stock. The shares may be repurchased in the open market or in
privately negotiated transactions.
Under the terms of the share repurchase program, the Company may
repurchase shares from time to time, in amounts, at prices, and at
such times as the Company deems appropriate, subject to market
conditions, legal requirements and other considerations. There is
no stated expiration for the share repurchase program. The Company
is not obligated to repurchase any specific number of shares or to
do so at any particular time, and the share repurchase program may
be suspended, modified or terminated at any time without prior
notice.
Special Items
During the quarter ended June 30, 2024, the Company recorded
pre-tax restructuring and asset impairment charges of $16.9 million
as a result of actions taken to streamline operations in the
Carpenter Additive business. During the current quarter, the
Company also recorded an $18.4 million U.S. tax benefit that was
generated as a result of the Additive restructuring.
Conference Call and Webcast Presentation
Carpenter Technology will host a conference call and webcast
presentation today, July 25, 2024, at 10:00 a.m. ET, to discuss the
financial results of operations for the fourth quarter and full
fiscal year 2024. Please dial +1 412-317-9259 for access to the
live conference call. Access to the live webcast will be available
at Carpenter Technology’s website
(http://www.carpentertechnology.com), and a replay will soon be
made available at http://www.carpentertechnology.com. Presentation
materials used during this conference call will be available for
viewing and download at http://www.carpentertechnology.com.
Non-GAAP Financial Measures
This press release includes discussions of financial measures
that have not been determined in accordance with U.S. Generally
Accepted Accounting Principles (GAAP). A reconciliation of the
non-GAAP financial measures to their most directly comparable
financial measures prepared in accordance with GAAP, accompanied by
reasons why the Company believes the non-GAAP measures are
important, are included in the attached schedules.
About Carpenter Technology
Carpenter Technology Corporation is a recognized leader in
high-performance specialty alloy-based materials and process
solutions for critical applications in the aerospace, defense,
medical, transportation, energy, industrial, and consumer
electronics markets. Founded in 1889, Carpenter
Technology has evolved to become a pioneer in premium
specialty alloys, including titanium, nickel, and cobalt, as well
as alloys specifically engineered for additive manufacturing (AM)
processes and soft magnetics applications. More information
about Carpenter Technology can be found at
www.carpentertechnology.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Act of 1995. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ from those projected,
anticipated or implied. The most significant of these uncertainties
are described in Carpenter Technology’s filings with the Securities
and Exchange Commission, including its report on Form 10-K for the
fiscal year ended June 30, 2023, Form 10-Q for the fiscal quarters
ended September 30, 2023, December 31, 2023, and March 31, 2024,
and the exhibits attached to such filings. They include but are not
limited to: (1) the cyclical nature of the specialty materials
business and certain end-use markets, including aerospace, defense,
medical, transportation, energy, industrial and consumer, or other
influences on Carpenter Technology’s business such as new
competitors, the consolidation of competitors, customers, and
suppliers or the transfer of manufacturing capacity from the United
States to foreign countries; (2) the ability of Carpenter
Technology to achieve cash generation, growth, earnings,
profitability, operating income, cost savings and reductions,
qualifications, productivity improvements or process changes; (3)
the ability to recoup increases in the cost of energy, raw
materials, freight or other factors; (4) domestic and foreign
excess manufacturing capacity for certain metals; (5) fluctuations
in currency exchange and interest rates; (6) the effect of
government trade actions; (7) the valuation of the assets and
liabilities in Carpenter Technology’s pension trusts and the
accounting for pension plans; (8) possible labor disputes or work
stoppages; (9) the potential that our customers may substitute
alternate materials or adopt different manufacturing practices that
replace or limit the suitability of our products; (10) the ability
to successfully acquire and integrate acquisitions; (11) the
availability of credit facilities to Carpenter Technology, its
customers or other members of the supply chain; (12) the ability to
obtain energy or raw materials, especially from suppliers located
in countries that may be subject to unstable political or economic
conditions; (13) Carpenter Technology’s manufacturing processes are
dependent upon highly specialized equipment located primarily in
facilities in Reading and Latrobe, Pennsylvania and Athens, Alabama
for which there may be limited alternatives if there are
significant equipment failures or a catastrophic event; (14) the
ability to hire and retain a qualified workforce and key personnel,
including members of the executive management team, management,
metallurgists and other skilled personnel; (15) fluctuations in oil
and gas prices and production; (16) the impact of potential cyber
attacks and information technology or data security breaches; (17)
the ability of suppliers to meet obligations due to supply chain
disruptions or otherwise; (18) the ability to meet increased
demand, production targets or commitments; (19) the ability to
manage the impacts of natural disasters, climate change, pandemics
and outbreaks of contagious diseases and other adverse public
health developments; and (20) geopolitical, economic, and
regulatory risks relating to our global business, including
geopolitical and diplomatic tensions, instabilities and conflicts,
such as the war in Ukraine, the war between Israel and HAMAS, and
Houthi attacks on commercial shipping vessels and other naval
vessels as well as compliance with U.S. and foreign trade and tax
laws, sanctions, embargoes and other regulations. Any of these
factors could have an adverse and/or fluctuating effect on
Carpenter Technology’s results of operations. The forward-looking
statements in this document are intended to be subject to the safe
harbor protection provided by Section 27A of the Securities Act of
1933, as amended (the “Securities Act”), and Section 21E of the
Securities Exchange Act of 1934, as amended. We caution you not to
place undue reliance on forward-looking statements, which speak
only as of the date of this press release or as of the dates
otherwise indicated in such forward-looking statements. Carpenter
Technology undertakes no obligation to update or revise any
forward-looking statements.
|
PRELIMINARY |
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(in millions, except per share data) |
|
(Unaudited) |
| |
| |
Three Months Ended |
|
Year Ended |
| |
June 30, |
|
June 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
| |
|
|
|
|
|
|
|
|
NET SALES |
$ |
798.7 |
|
$ |
758.1 |
|
$ |
2,759.7 |
|
$ |
2,550.3 |
| Cost of sales |
|
608.1 |
|
|
639.1 |
|
|
2,175.4 |
|
|
2,213.0 |
| Gross profit |
|
190.6 |
|
|
119.0 |
|
|
584.3 |
|
|
337.3 |
| |
|
|
|
|
|
|
|
| Selling, general and
administrative expenses |
|
65.4 |
|
|
56.1 |
|
|
230.2 |
|
|
204.2 |
| Goodwill impairment
charge |
|
— |
|
|
— |
|
|
14.1 |
|
|
— |
| Restructuring and asset
impairment charges |
|
16.9 |
|
|
— |
|
|
16.9 |
|
|
— |
| Operating income |
|
108.3 |
|
|
62.9 |
|
|
323.1 |
|
|
133.1 |
| |
|
|
|
|
|
|
|
| Interest expense, net |
|
12.4 |
|
|
14.1 |
|
|
51.0 |
|
|
54.1 |
| Other expense, net |
|
2.0 |
|
|
0.2 |
|
|
60.5 |
|
|
6.5 |
| |
|
|
|
|
|
|
|
| Income before income
taxes |
|
93.9 |
|
|
48.6 |
|
|
211.6 |
|
|
72.5 |
| Income tax expense |
|
0.3 |
|
|
10.2 |
|
|
25.1 |
|
|
16.1 |
| |
|
|
|
|
|
|
|
| NET INCOME |
$ |
93.6 |
|
$ |
38.4 |
|
$ |
186.5 |
|
$ |
56.4 |
| |
|
|
|
|
|
|
|
| EARNINGS PER COMMON
SHARE: |
|
|
|
|
|
|
|
|
Basic |
$ |
1.87 |
|
$ |
0.78 |
|
$ |
3.75 |
|
$ |
1.15 |
|
Diluted |
$ |
1.85 |
|
$ |
0.78 |
|
$ |
3.70 |
|
$ |
1.14 |
| |
|
|
|
|
|
|
|
| WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING: |
|
|
|
|
|
|
|
|
Basic |
|
50.0 |
|
|
48.9 |
|
|
49.7 |
|
|
48.8 |
|
Diluted |
|
50.6 |
|
|
49.4 |
|
|
50.3 |
|
|
49.2 |
| |
|
|
|
|
|
|
|
| Cash dividends per common
share |
$ |
0.20 |
|
$ |
0.20 |
|
$ |
0.80 |
|
$ |
0.80 |
| |
|
PRELIMINARY |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(in millions) |
|
(Unaudited) |
| |
| |
Year Ended |
| |
June 30, |
|
|
2024 |
|
2023 |
| OPERATING
ACTIVITIES |
|
|
|
|
Net income |
$ |
186.5 |
|
|
$ |
56.4 |
|
|
Adjustments to reconcile net income to net cash provided from
operating activities: |
|
|
|
|
Depreciation and amortization |
|
134.6 |
|
|
|
131.0 |
|
|
Goodwill impairment charge |
|
14.1 |
|
|
|
— |
|
|
Noncash restructuring and asset impairment charges |
|
15.8 |
|
|
|
— |
|
|
Deferred income taxes |
|
(13.3 |
) |
|
|
(0.4 |
) |
|
Net pension expense |
|
76.0 |
|
|
|
19.9 |
|
|
Share-based compensation expense |
|
19.8 |
|
|
|
16.4 |
|
|
Net loss on disposal of property, plant, and equipment |
|
4.6 |
|
|
|
2.5 |
|
|
Changes in working capital and other: |
|
|
|
|
Accounts receivable |
|
(32.6 |
) |
|
|
(144.5 |
) |
|
Inventories |
|
(96.7 |
) |
|
|
(140.3 |
) |
|
Other current assets |
|
(31.3 |
) |
|
|
13.0 |
|
|
Accounts payable |
|
(11.0 |
) |
|
|
29.2 |
|
|
Accrued liabilities |
|
23.6 |
|
|
|
38.2 |
|
|
Pension plan contributions |
|
(11.3 |
) |
|
|
— |
|
|
Other postretirement plan contributions |
|
(2.6 |
) |
|
|
(3.3 |
) |
|
Other, net |
|
(1.3 |
) |
|
|
(3.4 |
) |
|
Net cash provided from operating activities |
|
274.9 |
|
|
|
14.7 |
|
| INVESTING
ACTIVITIES |
|
|
|
|
Purchases of property, plant, equipment and software |
|
(96.6 |
) |
|
|
(82.3 |
) |
|
Proceeds from disposals of property, plant and equipment |
|
0.7 |
|
|
|
— |
|
|
Net cash used for investing activities |
|
(95.9 |
) |
|
|
(82.3 |
) |
| FINANCING
ACTIVITIES |
|
|
|
|
Credit agreement borrowings |
|
62.5 |
|
|
|
183.7 |
|
|
Credit agreement repayments |
|
(62.5 |
) |
|
|
(183.7 |
) |
|
Payments for debt issue costs |
|
— |
|
|
|
(1.9 |
) |
|
Dividends paid |
|
(40.0 |
) |
|
|
(39.4 |
) |
|
Proceeds from stock options exercised |
|
40.9 |
|
|
|
5.0 |
|
|
Withholding tax payments on share-based compensation awards |
|
(24.2 |
) |
|
|
(3.8 |
) |
|
Net cash used for financing activities |
|
(23.3 |
) |
|
|
(40.1 |
) |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(1.1 |
) |
|
|
(2.0 |
) |
| INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS |
|
154.6 |
|
|
|
(109.7 |
) |
|
Cash and cash equivalents at beginning of year |
|
44.5 |
|
|
|
154.2 |
|
|
Cash and cash equivalents at end of year |
$ |
199.1 |
|
|
$ |
44.5 |
|
|
|
|
PRELIMINARY |
|
CONSOLIDATED BALANCE SHEETS |
|
(in millions) |
|
(Unaudited) |
| |
| |
June 30, |
| |
2024 |
|
2023 |
| |
|
|
|
| ASSETS |
|
|
|
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
199.1 |
|
|
$ |
44.5 |
|
|
Accounts receivable, net |
|
562.6 |
|
|
|
531.3 |
|
|
Inventories |
|
735.4 |
|
|
|
639.7 |
|
|
Other current assets |
|
94.1 |
|
|
|
66.4 |
|
|
Total current assets |
|
1,591.2 |
|
|
|
1,281.9 |
|
| Property, plant, equipment and
software, net |
|
1,335.2 |
|
|
|
1,383.8 |
|
| Goodwill |
|
227.3 |
|
|
|
241.4 |
|
| Other intangibles, net |
|
15.2 |
|
|
|
28.7 |
|
| Deferred income taxes |
|
7.5 |
|
|
|
6.6 |
|
| Other assets |
|
115.3 |
|
|
|
111.5 |
|
|
Total assets |
$ |
3,291.7 |
|
|
$ |
3,053.9 |
|
| |
|
|
|
| LIABILITIES |
|
|
|
| Current liabilities: |
|
|
|
|
Accounts payable |
$ |
263.9 |
|
|
$ |
278.1 |
|
|
Accrued liabilities |
|
202.4 |
|
|
|
181.3 |
|
|
Total current liabilities |
|
466.3 |
|
|
|
459.4 |
|
| |
|
|
|
| Long-term debt |
|
694.2 |
|
|
|
693.0 |
|
| Accrued pension
liabilities |
|
207.6 |
|
|
|
190.1 |
|
| Accrued postretirement
benefits |
|
21.1 |
|
|
|
45.8 |
|
| Deferred income taxes |
|
174.1 |
|
|
|
170.3 |
|
| Other liabilities |
|
99.6 |
|
|
|
99.2 |
|
|
Total liabilities |
|
1,662.9 |
|
|
|
1,657.8 |
|
| |
|
|
|
| STOCKHOLDERS' EQUITY |
|
|
|
| Common stock |
|
284.9 |
|
|
|
280.7 |
|
| Capital in excess of par
value |
|
352.6 |
|
|
|
328.4 |
|
| Reinvested earnings |
|
1,374.5 |
|
|
|
1,228.0 |
|
| Common stock in treasury, at
cost |
|
(289.3 |
) |
|
|
(298.0 |
) |
| Accumulated other
comprehensive loss |
|
(93.9 |
) |
|
|
(143.0 |
) |
|
Total stockholders' equity |
|
1,628.8 |
|
|
|
1,396.1 |
|
|
Total liabilities and stockholders' equity |
$ |
3,291.7 |
|
|
$ |
3,053.9 |
|
|
|
|
PRELIMINARY |
|
SEGMENT FINANCIAL DATA |
|
(in millions, except pounds sold) |
|
(Unaudited) |
| |
| |
Three Months Ended |
|
Year Ended |
| |
June 30, |
|
June 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
| |
|
|
|
|
|
|
|
| Pounds sold (‘000): |
|
|
|
|
|
|
|
|
Specialty Alloys Operations |
|
57,204 |
|
|
|
61,528 |
|
|
|
208,154 |
|
|
|
212,050 |
|
|
Performance Engineered Products |
|
2,856 |
|
|
|
3,328 |
|
|
|
10,094 |
|
|
|
11,864 |
|
|
Intersegment |
|
(3,278 |
) |
|
|
(3,428 |
) |
|
|
(11,946 |
) |
|
|
(9,792 |
) |
|
Consolidated pounds sold |
|
56,782 |
|
|
|
61,428 |
|
|
|
206,302 |
|
|
|
214,122 |
|
| |
|
|
|
|
|
|
|
| Net sales: |
|
|
|
|
|
|
|
|
Specialty Alloys Operations |
|
|
|
|
|
|
|
|
Net sales excluding surcharge |
$ |
559.5 |
|
|
$ |
477.2 |
|
|
$ |
1,876.0 |
|
|
$ |
1,540.6 |
|
|
Surcharge |
|
156.3 |
|
|
|
189.8 |
|
|
|
567.8 |
|
|
|
673.0 |
|
|
Specialty Alloys Operations net sales |
|
715.8 |
|
|
|
667.0 |
|
|
|
2,443.8 |
|
|
|
2,213.6 |
|
| |
|
|
|
|
|
|
|
|
Performance Engineered Products |
|
|
|
|
|
|
|
|
Net sales excluding surcharge |
|
102.3 |
|
|
|
107.6 |
|
|
|
377.8 |
|
|
|
397.1 |
|
|
Surcharge |
|
8.9 |
|
|
|
11.1 |
|
|
|
33.2 |
|
|
|
36.6 |
|
|
Performance Engineered Products net sales |
|
111.2 |
|
|
|
118.7 |
|
|
|
411.0 |
|
|
|
433.7 |
|
| |
|
|
|
|
|
|
|
|
Intersegment |
|
|
|
|
|
|
|
|
Net sales excluding surcharge |
|
(26.0 |
) |
|
|
(24.8 |
) |
|
|
(86.1 |
) |
|
|
(89.7 |
) |
|
Surcharge |
|
(2.3 |
) |
|
|
(2.8 |
) |
|
|
(9.0 |
) |
|
|
(7.3 |
) |
|
Intersegment net sales |
|
(28.3 |
) |
|
|
(27.6 |
) |
|
|
(95.1 |
) |
|
|
(97.0 |
) |
| |
|
|
|
|
|
|
|
|
Consolidated net sales |
$ |
798.7 |
|
|
$ |
758.1 |
|
|
$ |
2,759.7 |
|
|
$ |
2,550.3 |
|
| |
|
|
|
|
|
|
|
| Operating income (loss): |
|
|
|
|
|
|
|
|
Specialty Alloys Operations |
$ |
140.9 |
|
|
$ |
80.0 |
|
|
$ |
408.5 |
|
|
$ |
179.1 |
|
|
Performance Engineered Products |
|
10.6 |
|
|
|
5.9 |
|
|
|
36.0 |
|
|
|
31.8 |
|
|
Corporate |
|
(43.8 |
) |
|
|
(22.5 |
) |
|
|
(123.0 |
) |
|
|
(75.5 |
) |
|
Intersegment |
|
0.6 |
|
|
|
(0.5 |
) |
|
|
1.6 |
|
|
|
(2.3 |
) |
|
Consolidated operating income |
$ |
108.3 |
|
|
$ |
62.9 |
|
|
$ |
323.1 |
|
|
$ |
133.1 |
|
|
|
The Company has two reportable segments, Specialty Alloys
Operations (“SAO”) and Performance Engineered Products (“PEP”).
The SAO segment is comprised of Carpenter’s major premium alloy
and stainless steel manufacturing operations. This includes
operations performed at mills primarily in Reading and Latrobe,
Pennsylvania and surrounding areas as well as South Carolina and
Alabama.
The PEP segment is comprised of the Company’s differentiated
operations. This segment includes the Dynamet titanium business,
the Carpenter Additive business and the Latrobe and Mexico
distribution businesses. The businesses in the PEP segment are
managed with an entrepreneurial structure to promote flexibility
and agility to quickly respond to market dynamics. It is our belief
this model will ultimately drive overall revenue and profit growth.
The pounds sold data above for the PEP segment includes only the
Dynamet and Additive businesses.
Corporate costs are comprised of executive and director
compensation, and other corporate facilities and administrative
expenses not allocated to the segments. Also included are items
that management considers not representative of ongoing operations
and other specifically-identified income or expense items.
The service cost component of net pension expense, which
represents the estimated cost of future pension liabilities earned
associated with active employees, is included in the operating
results of the business segments. The residual net pension expense
is included in other expense, net, and is comprised of the expected
return on plan assets, interest costs on the projected benefit
obligations of the plans, amortization of actuarial gains and
losses and prior service costs, and pension settlement charges.
|
PRELIMINARY |
|
NON-GAAP FINANCIAL MEASURES |
|
(in millions, except per share data) |
|
(Unaudited) |
| |
| ADJUSTED OPERATING MARGIN
EXCLUDING |
|
Three Months Ended |
|
Year Ended |
| SURCHARGE REVENUE AND SPECIAL
ITEMS |
|
June 30, |
|
June 30, |
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
| |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
798.7 |
|
|
$ |
758.1 |
|
|
$ |
2,759.7 |
|
|
$ |
2,550.3 |
|
| Less: surcharge revenue |
|
|
162.9 |
|
|
|
198.1 |
|
|
|
592.0 |
|
|
|
702.3 |
|
| Net sales excluding surcharge
revenue |
|
$ |
635.8 |
|
|
$ |
560.0 |
|
|
$ |
2,167.7 |
|
|
$ |
1,848.0 |
|
| |
|
|
|
|
|
|
|
|
| Operating income |
|
$ |
108.3 |
|
|
$ |
62.9 |
|
|
$ |
323.1 |
|
|
$ |
133.1 |
|
| |
|
|
|
|
|
|
|
|
| Special items: |
|
|
|
|
|
|
|
|
|
Goodwill impairment charge |
|
|
— |
|
|
|
— |
|
|
|
14.1 |
|
|
|
— |
|
|
Restructuring and asset impairment charges |
|
|
16.9 |
|
|
|
— |
|
|
|
16.9 |
|
|
|
— |
|
| Adjusted operating income |
|
$ |
125.2 |
|
|
$ |
62.9 |
|
|
$ |
354.1 |
|
|
$ |
133.1 |
|
| |
|
|
|
|
|
|
|
|
| Operating margin |
|
|
13.6 |
% |
|
|
8.3 |
% |
|
|
11.7 |
% |
|
|
5.2 |
% |
| |
|
|
|
|
|
|
|
|
| Adjusted operating margin
excluding surcharge revenue and special items |
|
|
19.7 |
% |
|
|
11.2 |
% |
|
|
16.3 |
% |
|
|
7.2 |
% |
| |
| ADJUSTED SEGMENT OPERATING
MARGIN |
|
Three Months Ended |
|
Year Ended |
| EXCLUDING SURCHARGE
REVENUE |
|
June 30, |
|
June 30, |
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
| Specialty Alloys
Operations |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
715.8 |
|
|
$ |
667.0 |
|
|
$ |
2,443.8 |
|
|
$ |
2,213.6 |
|
| Less: surcharge revenue |
|
|
156.3 |
|
|
|
189.8 |
|
|
|
567.8 |
|
|
|
673.0 |
|
| Net sales excluding surcharge
revenue |
|
$ |
559.5 |
|
|
$ |
477.2 |
|
|
$ |
1,876.0 |
|
|
$ |
1,540.6 |
|
| |
|
|
|
|
|
|
|
|
| Operating income |
|
$ |
140.9 |
|
|
$ |
80.0 |
|
|
$ |
408.5 |
|
|
$ |
179.1 |
|
| |
|
|
|
|
|
|
|
|
| Operating margin |
|
|
19.7 |
% |
|
|
12.0 |
% |
|
|
16.7 |
% |
|
|
8.1 |
% |
| |
|
|
|
|
|
|
|
|
| Adjusted operating margin
excluding surcharge revenue |
|
|
25.2 |
% |
|
|
16.8 |
% |
|
|
21.8 |
% |
|
|
11.6 |
% |
| |
| ADJUSTED SEGMENT OPERATING
MARGIN |
|
Three Months Ended |
|
Year Ended |
| EXCLUDING SURCHARGE
REVENUE |
|
June 30, |
|
June 30, |
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
| Performance Engineered
Products |
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
111.2 |
|
|
$ |
118.7 |
|
|
$ |
411.0 |
|
|
$ |
433.7 |
|
| Less: surcharge revenue |
|
|
8.9 |
|
|
|
11.1 |
|
|
|
33.2 |
|
|
|
36.6 |
|
| Net sales excluding surcharge
revenue |
|
$ |
102.3 |
|
|
$ |
107.6 |
|
|
$ |
377.8 |
|
|
$ |
397.1 |
|
| |
|
|
|
|
|
|
|
|
| Operating income |
|
$ |
10.6 |
|
|
$ |
5.9 |
|
|
$ |
36.0 |
|
|
$ |
31.8 |
|
| |
|
|
|
|
|
|
|
|
| Operating margin |
|
|
9.5 |
% |
|
|
5.0 |
% |
|
|
8.8 |
% |
|
|
7.3 |
% |
| |
|
|
|
|
|
|
|
|
| Adjusted operating margin
excluding surcharge revenue |
|
|
10.4 |
% |
|
|
5.5 |
% |
|
|
9.5 |
% |
|
|
8.0 |
% |
| |
Management believes that removing the impact of raw material
surcharge from operating margin provides a more consistent basis
for comparing results of operations from period to period, thereby
permitting management to evaluate performance and investors to make
decisions based on the ongoing operations of the Company. In
addition, management believes that excluding the impact of special
items from operating margin is helpful in analyzing the operating
performance of the Company, as these items are not indicative of
ongoing operating performance. Management uses its results
excluding these amounts to evaluate its operating performance and
to discuss its business with investment institutions, the Company’s
board of directors and others.
| |
|
|
|
|
|
|
|
|
| |
|
Earnings |
|
|
|
|
|
|
| |
|
Before |
|
|
|
|
|
Earnings Per |
| ADJUSTED EARNINGS PER DILUTED
SHARE |
|
Income |
|
Income Tax |
|
|
|
Diluted |
|
EXCLUDING SPECIAL ITEMS |
|
Taxes |
|
Expense |
|
Net Income |
|
Share* |
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2024, as reported |
|
$ |
93.9 |
|
$ |
(0.3 |
) |
|
$ |
93.6 |
|
|
$ |
1.85 |
|
| Special items: |
|
|
|
|
|
|
|
|
|
Restructuring and asset impairment charges |
|
|
16.9 |
|
|
(0.1 |
) |
|
|
16.8 |
|
|
|
0.33 |
|
|
US tax benefit related to restructuring activities |
|
|
— |
|
|
(18.4 |
) |
|
|
(18.4 |
) |
|
|
(0.36 |
) |
| Three months ended June 30,
2024, as adjusted |
|
$ |
110.8 |
|
$ |
(18.8 |
) |
|
$ |
92.0 |
|
|
$ |
1.82 |
|
| |
|
|
|
|
|
|
|
|
| * Impact per
diluted share calculated using weighted average common shares
outstanding of 50.6 million for the three months ended June 30,
2024. |
| |
|
Earnings |
|
|
|
|
|
|
| |
|
Before |
|
|
|
|
|
Earnings Per |
| ADJUSTED EARNINGS PER DILUTED
SHARE |
|
Income |
|
Income Tax |
|
|
|
Diluted |
|
EXCLUDING SPECIAL ITEM |
|
Taxes |
|
Expense |
|
Net Income |
|
Share* |
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2023, as reported |
|
$ |
48.6 |
|
$ |
(10.2 |
) |
|
$ |
38.4 |
|
$ |
0.78 |
| Special item: |
|
|
|
|
|
|
|
|
|
None reported |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
| Three months ended June 30,
2023, as adjusted |
|
$ |
48.6 |
|
$ |
(10.2 |
) |
|
$ |
38.4 |
|
$ |
0.78 |
| |
|
|
|
|
|
|
|
|
| * Impact per
diluted share calculated using weighted average common shares
outstanding of 49.4 million for the three months ended June 30,
2023. |
| |
|
Earnings |
|
|
|
|
|
|
| |
|
Before |
|
|
|
|
|
Earnings Per |
| ADJUSTED EARNINGS PER DILUTED
SHARE |
|
Income |
|
Income Tax |
|
|
|
Diluted |
|
EXCLUDING SPECIAL ITEMS |
|
Taxes |
|
Expense |
|
Net Income |
|
Share* |
|
|
|
|
|
|
|
|
|
|
|
Year ended June 30, 2024, as reported |
|
$ |
211.6 |
|
$ |
(25.1 |
) |
|
$ |
186.5 |
|
|
$ |
3.70 |
|
| Special items: |
|
|
|
|
|
|
|
|
|
Goodwill impairment charge |
|
|
14.1 |
|
|
— |
|
|
|
14.1 |
|
|
|
0.28 |
|
|
Restructuring and asset impairment charges |
|
|
16.9 |
|
|
(0.1 |
) |
|
|
16.8 |
|
|
|
0.33 |
|
|
Pension settlement charge |
|
|
51.9 |
|
|
(12.4 |
) |
|
|
39.5 |
|
|
|
0.79 |
|
|
US tax benefit related to restructuring activities |
|
|
— |
|
|
(18.4 |
) |
|
|
(18.4 |
) |
|
|
(0.36 |
) |
| Year ended June 30, 2024, as
adjusted |
|
$ |
294.5 |
|
$ |
(56.0 |
) |
|
$ |
238.5 |
|
|
$ |
4.74 |
|
| |
|
|
|
|
|
|
|
|
| * Impact per
diluted share calculated using weighted average common shares
outstanding of 50.3 million for the year ended June 30, 2024. |
| |
|
Earnings |
|
|
|
|
|
|
| |
|
Before |
|
|
|
|
|
Earnings Per |
| ADJUSTED EARNINGS PER DILUTED
SHARE |
|
Income |
|
Income Tax |
|
|
|
Diluted |
|
EXCLUDING SPECIAL ITEM |
|
Taxes |
|
Expense |
|
Net Income |
|
Share* |
|
|
|
|
|
|
|
|
|
|
|
Year ended June 30, 2023, as reported |
|
$ |
72.5 |
|
$ |
(16.1 |
) |
|
$ |
56.4 |
|
$ |
1.14 |
| Special item: |
|
|
|
|
|
|
|
|
|
None reported |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
| Year ended June 30, 2023, as
adjusted |
|
$ |
72.5 |
|
$ |
(16.1 |
) |
|
$ |
56.4 |
|
$ |
1.14 |
| |
|
|
|
|
|
|
|
|
| * Impact per
diluted share calculated using weighted average common shares
outstanding of 49.2 million for the year ended June 30, 2023. |
| |
Management believes that earnings per diluted share adjusted to
exclude the impact of special items is helpful in analyzing the
operating performance of the Company, as these items are not
indicative of ongoing operating performance. Management uses its
results excluding these amounts to evaluate its operating
performance and to discuss its business with investment
institutions, the Company’s board of directors and others.
| |
|
|
|
|
| |
|
Three Months Ended |
|
Year Ended |
| |
|
June 30, |
|
June 30, |
| ADJUSTED FREE CASH FLOW |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Net cash provided from operating activities |
|
$ |
169.5 |
|
|
$ |
174.9 |
|
|
$ |
274.9 |
|
|
$ |
14.7 |
|
| Purchases of property, plant,
equipment and software |
|
|
(27.7 |
) |
|
|
(30.8 |
) |
|
|
(96.6 |
) |
|
|
(82.3 |
) |
| Proceeds from disposals of
property, plant and equipment |
|
|
0.6 |
|
|
|
— |
|
|
|
0.7 |
|
|
|
— |
|
| Adjusted free cash flow |
|
$ |
142.4 |
|
|
$ |
144.1 |
|
|
$ |
179.0 |
|
|
$ |
(67.6 |
) |
| |
Management believes that the presentation of adjusted free cash
flow provides useful information to investors regarding the
Company’s financial condition because it is a measure of cash
generated which management evaluates for alternative uses. It is
management’s current intention to use excess cash to fund
investments in capital equipment, acquisition opportunities and
consistent dividend payments. Adjusted free cash flow is not a U.S.
GAAP financial measure and should not be considered in isolation
of, or as a substitute for, cash flows calculated in accordance
with U.S. GAAP.
|
PRELIMINARY |
|
SUPPLEMENTAL SCHEDULES |
|
(in millions) |
|
(Unaudited) |
| |
| |
|
Three Months Ended |
|
Year Ended |
| |
|
June 30, |
|
June 30, |
| NET SALES BY END-USE
MARKET |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
End-Use Market Excluding Surcharge Revenue: |
|
|
|
|
|
|
|
|
|
Aerospace and Defense |
|
$ |
376.3 |
|
$ |
294.2 |
|
$ |
1,199.2 |
|
$ |
919.5 |
|
Medical |
|
|
91.7 |
|
|
66.6 |
|
|
315.4 |
|
|
241.3 |
|
Transportation |
|
|
26.6 |
|
|
36.8 |
|
|
108.9 |
|
|
121.8 |
|
Energy |
|
|
36.5 |
|
|
34.8 |
|
|
130.4 |
|
|
104.3 |
|
Industrial and Consumer |
|
|
82.8 |
|
|
96.6 |
|
|
319.4 |
|
|
339.4 |
|
Distribution |
|
|
21.9 |
|
|
31.0 |
|
|
94.4 |
|
|
121.7 |
| Total net sales excluding
surcharge revenue |
|
|
635.8 |
|
|
560.0 |
|
|
2,167.7 |
|
|
1,848.0 |
| Surcharge revenue |
|
|
162.9 |
|
|
198.1 |
|
|
592.0 |
|
|
702.3 |
| Total net sales |
|
$ |
798.7 |
|
$ |
758.1 |
|
$ |
2,759.7 |
|
$ |
2,550.3 |
| |
| Investor
Inquiries:John Huyette+1 610-208-2061jhuyette@cartech.com |
Media
Inquiries:Heather Beardsley+1
610-208-2278hbeardsley@cartech.com |
Carpenter Technology (NYSE:CRS)
過去 株価チャート
から 6 2024 まで 7 2024
Carpenter Technology (NYSE:CRS)
過去 株価チャート
から 7 2023 まで 7 2024
