Carpenter Technology Reports First Quarter Results.READING, Pa.--(BUSINESS WIRE)--Oct. 21, 1998--Carpenter Technology Corporation (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 ) today reported sales and earnings for the quarter ended September September: see month. 30, 1998, the first quarter of Carpenter's fiscal year. For the quarter, net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $250.3 million compared with $249.5 million for the quarter ended September 30, 1997. Net income was $12.2 million as compared with $17.1 million for the year-ago quarter. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter decreased to $.51 per share versus $.82 per share last year because of lower net income and increased common shares outstanding, resulting from the acquisition of Talley Talley or Talyllychau is a small village located in Carmarthenshire, Wales. It is known for the ruins of Talley Abbey. External links
• Industries, Inc. Carpenter previously announced that it expected its first quarter earnings to be in the range of $.50 to $.55 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. W. Cardy, Carpenter's chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , "The quarter closed about as anticipated. The strike against General Motors, the excess inventory in the aerospace industry supply chain and softness in some industrial markets were the principal reasons for results of operations being less than the year-ago quarter." Tons of products sold by Carpenter's 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 (SAO Sa´o n. 1. (Zool.) Any marine annelid of the genus Hyalinæcia, especially H. tubicola of Europe, which inhabits a transparent movable tube resembling a quill in color and texture. ) core business excluding Talley declined approximately 14 percent from the September 1997 quarter. The current quarter included sales of Talley, Amcan and Shalmet which were acquired after the September 30, 1997 quarter, and increased SAO overall sales. Dynamet Incorporated's sales declined approximately 17 percent due to lower aerospace sales, and Engineered Products Group's sales increased approximately 23 percent, as a result of acquisitions. Net income declined for the quarter ended September 30, 1998, compared with the quarter ended September 30, 1997, principally as a result of a reduction in higher margin aerospace and automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. sales and reduced shipments of corrosion resistant products for the oil and gas industry. On September 16, Carpenter also reported that it expects diluted earnings per share for its second quarter ending December December: see month. 31, 1998, to be below those of the prior year of $.89 per share on a diluted basis. Mr. Cardy said, "We continue to be optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op on the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strength of the aerospace and automotive industries Automotive Industries, Ltd. (Hebrew: תעשיות רכב נצרת עלית, תע"ר , Carpenter's two largest markets. However, some of the economic situations we encountered in the first quarter, such as the inventory accumulation in products for the aerospace industry and lower sales to the oil and gas industry, will continue into the second quarter. "Although it is early in the quarter, we expect that diluted earnings per share for the second quarter will be comparable to, or somewhat higher than, the earnings for the quarter ended September 30, 1998." Carpenter is continuing with its share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program of up to 1,250,000 shares. Approximately 70 percent of the authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: share repurchase has been completed. Carpenter has scheduled a conference call for Wednesday Wednesday: see week. , October October: see month. 21, to respond to questions relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc its results of operations for the first quarter. Please call Bob Dickson Robert B. "Bob" Dickson (born January 25, 1944) is an American professional golfer who played on the PGA Tour and the Champions Tour. Dickson was born in McAlester, Oklahoma. at 610-208-2165 for the conference call phone number and password. Some of the statements in this news release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ materially from those projected. Information concerning factors that could cause actual results to differ materially from those projected in the forward-looking statements can be found in Carpenter's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Carpenter, headquartered in Reading, Pa., manufactures and distributes high-performance alloys consisting primarily of specialty steel, superalloys 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 ceramic This article is about ceramic materials. For the fine art, see Ceramic art. The word ceramic is derived from the Greek word κεραμικός (keramikos). 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 6,000 employees throughout the world. Additional information on Carpenter can be obtained by accessing its world wide web site: www.cartech.com. -0-
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(In Millions, Except Per Share Data)
Three Months Ended
September 30
1998 1997
---- ----
NET SALES $250.3 $249.5
----- -----
COSTS AND EXPENSES:
Cost of sales 183.6 179.4
Selling and
administrative expenses 40.1 36.2
Interest expense 6.5 5.9
Other expense, net .5 .1
----- -----
230.7 221.6
----- ------
INCOME BEFORE INCOME TAXES 19.6 27.9
Income taxes 7.4 10.8
----- -----
NET INCOME $ 12.2 $ 17.1
===== =====
EARNINGS PER COMMON SHARE:
Basic $ .52 $ .86
===== ======
Diluted $ .51 $ .82
===== ======
Weighted average common
shares outstanding (diluted) 23.7 20.7
===== ======
Cash dividends per
common share $ .33 $ .33
===== ======
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
(In Millions)
Three Months Ended
September 30
--------------
1998 1997
------- -------
OPERATIONS
Net income $ 12.2 $ 17.1
Adjustments to reconcile net income
to net cash provided from operations:
Depreciation and amortization 15.7 12.8
Deferred income taxes (4.1) 1.4
Prepaid pension costs (8.8) (5.5)
Loss on asset disposals .1 .4
Changes in working capital and other,
net of acquisitions:
Receivables 30.0 17.0
Inventories (23.3) (21.5)
Accounts payable (.5) (.5)
Accrued current liabilities (14.4) (10.2)
Other, net 1.9 (7.9)
------- -------
Net cash provided from operations 8.8 3.1
------- -------
INVESTING ACTIVITIES
Purchases of plant and equipment (50.2) (22.3)
Proceeds from disposals of plant
and equipment -- .2
Proceeds from net assets held for sale 19.7 --
Acquisitions of businesses, net
of cash received -- (18.1)
------- -------
Net cash used for investing activities (30.5) (40.2)
------- -------
FINANCING ACTIVITIES
Net change in short-term debt 12.4 (.3)
Proceeds from issuance of long-term debt -- 40.0
Payments on long-term debt (.3) (.1)
Payments to acquire treasury stock (23.7) --
Dividends paid (7.9) (6.8)
Proceeds from issuance of common stock 1.0 1.3
------- -------
Net cash provided from (used for)
financing activities (18.5) 34.1
------- -------
DECREASE IN CASH AND CASH EQUIVALENTS (40.2) (3.0)
Cash and cash equivalents at
beginning of period 52.4 18.6
------- -------
Cash and cash equivalents at
end of period $ 12.2 $ 15.6
======== =======
CONSOLIDATED BALANCE SHEET
(In Millions)
September 30 June 30
1998 1998
------------ -------------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 12.2 $ 52.4
Accounts receivable, net 147.0 177.0
Inventories 290.4 267.1
Net assets held for sale 110.5 130.2
Other current assets 19.3 18.8
--------- ---------
Total current assets 579.4 645.5
Property, plant and equipment, net 681.4 644.1
Prepaid pension cost 146.8 138.0
Goodwill, net 169.6 171.8
Other assets 96.3 99.5
--------- ---------
Total assets $1,673.5 $1,698.9
========= =========
LIABILITIES
Current liabilities:
Short-term debt $ 132.2 $ 119.8
Accounts payable 80.0 80.5
Accrued compensation 20.4 35.0
Accrued income taxes 8.0 --
Deferred income taxes 19.3 24.8
Other accrued liabilities 44.9 52.7
Current portion of long-term debt 36.0 36.3
---------- ---------
Total current liabilities 340.8 349.1
Long-term debt, net of current portion 370.7 370.7
Accrued postretirement benefits 132.6 132.8
Deferred income taxes 144.3 142.9
Other liabilities 43.5 43.9
SHAREHOLDERS' EQUITY
Preferred stock 27.7 27.8
Common stock 115.2 115.0
Capital in excess of par value 190.8 190.0
Reinvested earnings 363.4 359.1
Common stock in treasury, at cost (27.1) (3.4)
Deferred compensation (17.2) (17.8)
Foreign currency translation adjustments (11.2) (11.2)
----------- ----------
Total shareholders' equity 641.6 659.5
----------- ----------
Total liabilities and
shareholders' equity $1,673.5 $1,698.9
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