Carpenter Earnings Exceed Expectations for its First Fiscal Quarter.READING, Pa.--(BUSINESS WIRE)--Oct. 17, 1997--Carpenter Technology Corp. (NYSE NYSE See: New York Stock Exchange :CRS CRS Course CRS Certified Residential Specialist (real estate certification) CRS Central Reservation System CRS Can't Remember Stuff (polite form) CRS Cost Reduction Strategy CRS Consumer Relations Specialist ) Friday reported primary earnings per share of 85 cents for its quarter ended Sept. 30, 1997, compared with 46 cents for the quarter ended Sept. 30, 1996. Net income for the quarter was $17.1 million, up 112 percent compared with $8.1 million for the same period a year ago. First quarter sales were $249.5 million, a 28 percent increase from the same period last year. The sales and earnings results were records for a first quarter for Carpenter. The primary factors in the earnings improvement were the improved performance of the Specialty Alloys This is a list of alloys for which an article exists in Wikipedia (or is proposed but not yet written). They are grouped by base metal, in order of increasing atomic number. Within these headings they are in no particular order. Operations unit and the results of Dynamet Incorporated, which was acquired in February 1997. The Specialty Alloys Operations unit's earnings rebounded strongly from those of the September 1996 quarter as a result of a 9 percent improvement in unit volume shipped and a higher operating level. The September 1996 quarter was adversely affected by an extended maintenance shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down which resulted in lower manufacturing levels and higher repair spending. Increased environmental remediation Generally, remediation means providing a remedy, so environmental remediation deals with the removal of pollution or contaminants from environmental media such as soil, groundwater, sediment, or surface water for the general protection of human health and the environment or from a charges and a higher effective income tax rate as a result of tax law changes partially offset the strong operating results. Robert W. Cardy, chairman, president and chief executive officer, said, "We are pleased that Carpenter's first quarter earnings exceeded expectations and with the performance of all operating groups. "Overall, Carpenter's Specialty Alloys facilities are running at 90 to 95 percent of capacity which is one of the reasons that Carpenter is pursuing external expansion opportunities such as Talley Industries." On Oct. 2, 1997, Carpenter made an offer to purchase all outstanding common and preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. of Talley Industries, Inc. (NYSE:TAL TAL - Transaction Application Language ), a diversified diversified (di·verˑ·s manufacturer. The $12 per common share tender offer is scheduled to expire on Oct. 30. The offer is conditioned upon shares representing a majority of the voting power of Talley stock being tendered and upon other customary contingencies, including expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of the Hart-Scott-Rodino waiting period. Following completion of the tender offer, Carpenter intends to acquire the balance of Talley stock in a merger and divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. all but the metals manufacturing and distribution businesses of Talley. The aggregate value of the transaction will be approximately $312 million, representing $185 million to acquire Talley's 15.4 million outstanding common and preferred shares and the assumption of Talley's debt. Cardy stated, "Carpenter's $12 per common share offer for Talley was based on internal assessment and the valuation of Carpenter's investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and , Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. ." He said that the bid is supported by Talley's Board and an analysis by J.P. Morgan, Talley's investment advisor, who valued Talley at $6 to $8 per common share if business units of the company were sold separately. Carpenter, headquartered in Reading, Pa., manufactures and distributes high performance alloys consisting primarily of specialty steel and titanium titanium (tītā`nēəm, tĭ–) [from Titan], metallic chemical element; symbol Ti; at. no. 22; at. wt. 47.88; m.p. 1,675°C;; b.p. 3,260°C;; sp. gr. 4.54 at 20°C;; valence +2, +3, or +4. products for automotive, aerospace, electronics and other industries worldwide. Carpenter also manufactures engineered products such as structural ceramic cores for the casting industry and metal injection molded mold 1 n. 1. A hollow form or matrix for shaping a fluid or plastic substance. 2. A frame or model around or on which something is formed or shaped. 3. Something that is made in or shaped on a mold. parts for many other applications. Carpenter has approximately 5,300 employees throughout the world, including 2,800 in Reading. -0-
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(In Thousands, Except Per Share Data)
Three Months Ended
Sept. 30
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1997 1996
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NET SALES $249,495 $194,746
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COSTS AND EXPENSES:
Cost of sales 179,419 148,318
Selling and
administrative expenses 36,209 29,555
Interest expense 5,848 4,426
Other expense, net 78 72
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221,554 182,371
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INCOME BEFORE INCOME TAXES 27,941 12,375
Income taxes 10,857 4,300
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NET INCOME $ 17,084 $ 8,075
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EARNINGS PER COMMON SHARE:
Primary $ .85 $ .46
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Fully diluted $ .82 $ .45
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Weighted average common
shares outstanding 19,737 16,712
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Cash dividends per
common share $ .33 $ .33
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CONTACT: Carpenter Technology Corp. Robert J. Dickson, treasurer, 610/208-2165 |
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