Carpenter Technology Reports Third Quarter Results.WYOMISSING, Pa. -- Carpenter Technology Corporation Carpenter Technology Corporation (NYSE:CRS) is a leading manufacturer and distributor of specialty alloys, including stainless steel and titanium, and various engineered products made from metallic and ceramic materials. (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 record sales and net income, which reflected favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market conditions and a continued focus on costs through lean and variation reduction. 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 for the third fiscal quarter ended March 31, 2005 were $342.1 million, compared with $280.4 million for the same period a year ago. Net income in the third quarter was $35.3 million or $1.38 per 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. share, compared to net income of $10.3 million or $.42 per diluted share a year ago. Net income in the third quarter a year ago included non-cash pension and retiree medical expenses (net pension expense) of $2.0 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. or $.09 per diluted share. In the recent third quarter, Carpenter's net pension expense was less than $.01 per diluted share. Free cash flow in the recent third quarter was $46.1 million, compared with free cash flow of $47.4 million in the third quarter a year ago. At the end of the recent third quarter, total debt net of cash was $116.8 million. Carpenter's net debt amount was $60.0 million lower than at the end of the previous quarter and $148.9 million lower than a year ago. Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Results Net sales for the first nine months of the current fiscal year were $951.8 million, compared with $719.9 million for the same period a year ago. Net income for the first nine months of the current fiscal year was $87.6 million or $3.48 per diluted share, compared with net income of $18.3 million or $.75 per diluted share for the same period a year ago. Free cash flow for the first nine months of fiscal 2005 was $88.7 million, compared to free cash flow of $79.0 million for the same period a year ago. Third Quarter - Operating Summary "Favorable market conditions, strong demand for higher value products particularly from the aerospace market and our continued focus on operational excellence resulted in record earnings in the third quarter," said 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. J. Torcolini, chairman, president and chief executive officer. "The quarterly results reflected the continued operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. created through our relentless focus on lean and variation reduction. We also benefited from a shift in product mix to higher value materials as a result of robust demand from the aerospace and power generation markets. Additionally, margins improved from an intentional in·ten·tion·al adj. 1. Done deliberately; intended: an intentional slight. See Synonyms at voluntary. 2. Having to do with intention. reduction in the sale of marginally mar·gin·al adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. profitable products." Carpenter's sales increased 22 percent in the third quarter from a year ago, which reflected a better product mix, increased base selling prices and surcharges to help recover high raw material costs. Excluding surcharge An overcharge or additional cost. A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty. revenue, sales increased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 17% from the third quarter a year ago. Sales increased in most major end-use markets during the third quarter versus the same quarter a year ago. Aerospace market sales increased 50 percent; medical market sales, 31 percent; industrial market sales, 23 percent; power generation market sales, 13 percent; and automotive market sales, 12 percent. Sales to the consumer market declined 4 percent from the same quarter a year ago due primarily to an intentional reduction in the sale of marginally profitable products. Geographically ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge , sales outside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. increased 22 percent from a year ago and represented 28 percent of third quarter sales. Sales outside the United States continued to benefit from the effects of a weaker U.S. dollar, strong growth in Asia and increased demand for aerospace and medical materials. Carpenter's gross profit in the third quarter increased to $85.2 million or 24.9 percent of sales from $49.3 million or 17.6 percent of sales a year ago. In the third quarter a year ago, the gross profit reflected net pension expense of $2.5 million or 0.9 percent of sales. The gross profit in the recent third quarter included net pension expense of $0.2 million. The gross profit improvement reflected a better product mix due to growth in key markets including aerospace, power generation and medical, higher base prices and a continued focus on lean and variation reduction. Carpenter's third quarter operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased to $56.6 million or 16.5 percent of sales from $19.5 million or 7.0 percent of sales a year ago. The increase reflects the improvement in gross profit and a decline in selling and administrative expenses compared to the quarter a year ago. Outlook "We continue to expect that our operating performance will show year-over-year improvements as market conditions should remain favorable," Torcolini said. "The robust activity throughout the aerospace market is creating strong demand for our higher value materials including specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. 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. , 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. and ceramics ceramics (sərăm`ĭks), materials made of nonmetallic minerals that have been permanently hardened by firing at a high temperature, or objects made of such materials. ." Accordingly, the company expects that free cash flow will be in excess of $120 million for the current fiscal year. Carpenter had previously estimated that free cash flow would be in excess of $100 million. Segment Results - Third Quarter Specialty Metals Net sales for the quarter ended March 31, 2005 for the Specialty Metals segment, which includes the Specialty Alloys 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. ), Dynamet, and Carpenter Powder powder, any mass of fine particles or dust prepared by various mechanical means, e.g., grinding of solid substances, or by chemical means, e.g., precipitation from solutions. In a special sense, the word is applied to powdered propellant explosives, e.g. Products (CPP cpp - C preprocessor. ) business units were $311.1 million, compared to $253.2 million in the same quarter a year ago. SAO sales increased 19 percent from the same quarter a year ago. The increase was due primarily to a better product mix as a result of strong demand from the U.S. and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. aerospace markets, pricing actions and surcharges. SAO volume decreased 14 percent from the quarter a year ago primarily reflecting the strategy to reduce the sale of marginally profitable products. Dynamet's sales increased 60 percent in the third quarter versus a year ago, also as a result of strong demand from the aerospace markets, continued growth in the medical market and higher base selling prices. The sales increase also reflects the impact of a significant rise in titanium costs. CPP's sales were 46 percent higher than a year ago due to strong demand from the industrial and automotive markets and increased selling prices. Operating income for the Specialty Metals segment was $52.6 million, compared to $19.8 million a year ago. The increase in operating income reflected the effects of a better product mix, higher base pricing and continued operational improvements. Engineered Products Segment Net sales for this segment, which includes sales of fabricated fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: metal and 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). components were $31.9 million, compared to $28.0 million a year ago. Stronger demand from the automotive and aerospace markets and higher base prices were the primary drivers of the sales increase. Operating income for the Engineered Products segment increased to $5.6 million in the third quarter from $3.9 million a year ago. Operating income benefited from higher sales, increased base selling prices and better operating efficiencies from lean and variation reduction. Segment Results - Year-to-Date Specialty Metals Net sales for the first nine months of fiscal 2005 for the Specialty Metals segment were $858.6 million, compared to $640.8 million for the same period a year ago. SAO sales increased 32 percent from a year ago, due to an improved product mix, base pricing actions and surcharges. SAO volume was flat with a year ago as strong demand for higher value materials was offset primarily by SAO's intentional reduction in the sale of marginally profitable products. Dynamet's sales increased 58 percent during the first nine months of fiscal 2005 compared to the same period a year ago. The increase is due primarily to stronger demand from the aerospace and medical markets and increased prices. CPP's sales were 39 percent higher than a year ago as a result of strong demand from the industrial, automotive and aerospace markets and higher base selling prices. Operating income for the Specialty Metals segment was $125.5 million during the first nine months of fiscal 2005 as compared to $38.8 million for the same period a year ago. The increase reflected higher base pricing, a better product mix and continued operational improvements. Engineered Products Segment Net sales for this segment through the first nine months of fiscal 2005 were $95.6 million as compared to $81.0 million for the same period a year ago. This group of companies benefited from strong demand across most major markets including automotive, aerospace, industrial and power generation and higher base selling prices. Operating income for the Engineered Products segment for the first nine months of fiscal 2005 was $16.4 million versus $10.6 million for the same period a year ago. The increase in operating income was largely associated with stronger demand, better pricing and a continued focus on lean and variation reduction. Net Pension Expense In the third quarter of fiscal 2005, Carpenter had non-cash pension and retiree medical expenses of $0.6 million, which was offset by the favorable tax effects of Medicare Medicare, national health insurance program in the United States for persons aged 65 and over and the disabled. It was established in 1965 with passage of the Social Security Amendments and is now run by the Centers for Medicare and Medicaid Services. Part D. As a result, Carpenter's net pension expense was $0.1 million and did not have a measurable impact on earnings per share. This compares to net pension expense of $2.0 million after-tax or $.09 per diluted share for the same quarter a year ago. The net pension amount is actuarially determined as of each June June: see month. 30 and typically held constant throughout the fiscal year. The company's defined benefit pension plan remains well funded and, as in prior years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time company is not required to make a cash contribution to the plan. Other Items In the third quarter of fiscal 2005, selling and administrative expenses of $28.6 million were 8.4 percent of sales compared to $29.8 million or 10.6 percent of sales in the same quarter a year ago. Selling and administrative expenses included net pension expense of $0.4 million in the current third quarter versus $1.2 million in the quarter a year ago. For the first nine months of fiscal 2005, selling and administrative expenses of $85.9 million were the same as a year ago. However, as a percentage of sales, selling and administrative expenses declined to 9.0 percent through the first nine months of fiscal 2005 from 11.9 percent of sales for the same period a year ago. For the first nine months of the current fiscal year, net pension expense included in selling and administrative expenses was $1.2 million versus $3.7 million a year ago. Interest expense for the quarter increased to $5.9 million from $5.6 million in the quarter a year ago due to higher interest rates. For the first nine months of fiscal 2005, interest expense was $17.6 million or $0.4 million lower than the same period a year ago. The nine month period a year ago included a charge of $2.3 million associated with the early retirement of debt. Other income for the third quarter was $2.4 million as compared to $0.7 million in the third quarter a year ago. The change largely reflects increased interest income from higher balances of invested cash and foreign exchange gains. For the first nine months of fiscal 2005, other income was $7.7 million, compared to $7.0 million for the same period a year ago. Other income primarily reflects funds received under the "Continued Dumping dumping, selling goods at less than the normal price, usually as exports in international trade. It may be done by a producer, a group of producers, or a nation. and Subsidy subsidy, financial assistance granted by a government or philanthropic foundation to a person or association for the purpose of promoting an enterprise considered beneficial to the public welfare. Offset Act of 2000" and interest income from invested cash balances. In the recent third quarter, net income benefited by $.03 per diluted share primarily due to an increase in estimated tax Federal and state tax laws require a quarterly payment of estimated taxes due from corporations, trusts, estates, non-wage employees, and wage employees with income not subject to withholding. credits. Cash Flow and Liquidity Carpenter has maintained the ability to provide cash to meet its needs through cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , management of working capital and the flexibility to use outside sources of financing to supplement internally generated funds. Free cash flow for the third quarter was $46.1 million, compared to $47.4 million a year ago. Through the first nine months of fiscal 2005 free cash flow was $88.7 million, compared to $79.0 million for the same period a year ago. Carpenter believes that its current financial resources, both from internal and external sources, will be more than adequate to meet its foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. needs. At the end of the third quarter, Carpenter had approximately $185 million available under its credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities . Conference Call Carpenter will host a conference call and webcast today, April 25, at 10:00 a.m., Eastern Time, to discuss the results of operations for the third quarter. Please call 610-208-2800 for details of the conference call. Access to the call will also be made available at Carpenter's web site (www.cartech.com) and through CCBN CCBN Central Coast Bancorp CCBN Charles County Business Network (www.ccbn.com). A replay of the call will be made available at www.cartech.com or at www.ccbn.com. Carpenter produces and distributes specialty alloys, including stainless steels stainless steel: see steel. stainless steel Any of a family of alloy steels usually containing 10–30% chromium. The presence of chromium, together with low carbon content, gives remarkable resistance to corrosion and heat. , titanium alloys Titanium alloys are metallic materials which contain a mixture of titanium and other chemical elements. Such alloys have very high tensile strength and toughness (even at extreme temperatures), light weight, extraordinary corrosion resistance, and ability to withstand extreme and superalloys, and various engineered products. Information about Carpenter can be found on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.cartech.com. Except for historical information, all other information in this news release consists of 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. within the meaning of the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. . The most significant of these uncertainties are described in Carpenter's filings with the Securities and Exchange Commission including its 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. for the year ended June 30, 2004, its subsequent Form 10-Q Form 10-Q See 10-Q. and the exhibits attached to those filings. They include but are not limited to: 1) the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of the specialty materials business and certain end-use markets, including aerospace, power generation, automotive, industrial and consumer, or other influences on Carpenter's business such as new competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , the consolidation of customers and suppliers or the transfer of manufacturing capacity from the United States to foreign countries; 2) the ability of Carpenter to achieve cost savings, productivity improvements or process changes; 3) the ability to recoup recoup To sell an asset at a price sufficient to recover the original outlay or to offset a previous loss. increases in the cost of energy and raw materials or other factors; 4) domestic and foreign excess manufacturing capacity for certain metals; 5) fluctuations in currency exchange rates; 6) the degree of success of government trade actions; 7) the valuation of the assets and liabilities in Carpenter's pension trusts and the accounting for pension plans; 8) possible labor disputes or work stoppages; and 9) the potential that our customers may substitute alternate alternate /al·ter·nate/ (awl´ter-nit) 1. following in turns. 2. pertaining to every other one in a series. 3. occurring in place of another; acting as a substitute. materials or adopt different manufacturing practices that replace or limit the suitability of our products. Any of these factors could have an adverse and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. effect on Carpenter's results of operations. The forward-looking statements in this document are intended to be subject to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. protection provided by Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. Carpenter undertakes no obligation to update or revise any forward-looking statements.
CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share data)
Three Months Ended Nine Months Ended
March 31 March 31
---------------- -----------------
2005 2004 2005 2004
------- -------- -------- --------
NET SALES $342.1 $280.4 $951.8 $719.9
Cost of sales 256.9 231.1 728.6 597.2
------- -------- -------- --------
Gross profit 85.2 49.3 223.2 122.7
Selling and administrative expenses 28.6 29.8 85.9 85.9
------- -------- -------- --------
Operating income 56.6 19.5 137.3 36.8
Interest expense 5.9 5.6 17.6 18.0
Loss on early retirement of debt -- -- -- 2.3
Other income, net (2.4) (0.7) (7.7) (7.0)
------- -------- -------- --------
Income before income taxes 53.1 14.6 127.4 23.5
Income taxes 17.8 4.3 39.8 5.2
------- -------- -------- --------
NET INCOME $35.3 $10.3 $87.6 $18.3
======= ======== ======== ========
EARNINGS PER COMMON SHARE:
Basic $1.43 $0.43 $3.60 $0.76
======= ======== ======== ========
Diluted $1.38 $0.42 $3.48 $0.75
======= ======== ======== ========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
Basic 24.4 22.6 24.0 22.4
======= ======== ======== ========
Diluted 25.4 23.6 25.0 23.3
======= ======== ======== ========
Cash dividends per common share $0.10 $0.0825 $0.2825 $0.2475
======= ======== ======== ========
Certain reclassifications of prior year's amounts have been made to
conform with current year's presentation.
PRELIMINARY
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
Nine months ended
March 31
--------------
2005 2004
------- ------
OPERATIONS:
Net income $87.6 $18.3
Adjustments to reconcile net income to
net cash provided from operations:
Depreciation 35.0 36.9
Amortization 2.8 6.4
Deferred income taxes 17.7 (7.1)
Net pension expense 1.8 12.4
Net loss on asset disposals 0.3 0.3
Changes in working capital and other:
Receivables (30.3) (31.8)
Inventories (38.7) (1.9)
Other current assets (4.0) 0.6
Accounts payable 15.3 34.3
Accrued current liabilities 19.6 19.3
Income tax refund 1.9 0.4
Other, net (4.2) 0.7
------- ------
Net cash provided from operations 104.8 88.8
------- ------
INVESTING ACTIVITIES:
Purchases of plant, equipment and software (8.8) (5.2)
Proceeds from disposals of plant and equipment 0.6 2.3
Purchases of marketable securities (128.2) (45.4)
Sales of marketable securities 68.6 26.2
------- ------
Net cash used for investing activities (67.8) (22.1)
------- ------
FINANCING ACTIVITIES:
Net change in short-term debt (1.3) (15.1)
Payments on long-term debt -- (20.1)
Checks not cleared -- (3.7)
Dividends paid (7.9) (6.9)
Proceeds from issuance of common stock 46.1 11.0
------- ------
Net cash provided from (used for) financing activities 36.9 (34.8)
------- ------
Effect of exchange rate changes on cash and cash
equivalents (2.3) (0.1)
------- ------
INCREASE IN CASH AND CASH EQUIVALENTS 71.6 31.8
Cash and cash equivalents at beginning of period 76.6 53.5
------- ------
Cash and cash equivalents at end of period $148.2 $85.3
======= ======
Certain reclassifications of prior year's amounts have been made to
conform with current year's presentation.
PRELIMINARY
CONSOLIDATED BALANCE SHEET
(in millions)
March 31 June 30
2005 2004
--------- ---------
ASSETS
Current Assets:
Cash and cash equivalents $148.2 $76.6
Marketable securities 88.3 28.8
Accounts receivable, net 197.7 165.2
Inventories 224.5 185.0
Other current assets 35.8 36.2
--------- ---------
Total current assets 694.5 491.8
Property, plant and equipment, net 583.3 608.7
Prepaid pension cost 249.9 247.0
Goodwill 46.4 46.4
Trademarks and trade names, net 21.3 24.3
Other assets 31.9 38.0
--------- ---------
Total assets $1,627.3 $1,456.2
========= =========
LIABILITIES
Current liabilities:
Short-term debt $1.0 $2.2
Accounts payable 124.7 109.0
Accrued compensation 28.4 26.1
Accrued income taxes 26.7 10.3
Accrued liabilities 54.7 51.4
Deferred income taxes 7.4 10.9
Current portion of long-term debt 20.2 20.2
--------- ---------
Total current liabilities 263.1 230.1
Long-term debt, net of current portion 332.1 332.7
Accrued postretirement benefits 135.3 143.5
Deferred income taxes 193.8 175.6
Other liabilities 36.5 36.3
--------- ---------
Total liabilities 960.8 918.2
--------- ---------
STOCKHOLDERS' EQUITY
Convertible preferred stock 20.0 20.8
Common stock 128.2 120.7
Capital in excess of par value - common stock 254.2 215.1
Reinvested earnings 310.1 230.4
Common stock in treasury, at cost (38.0) (38.0)
Deferred compensation (6.0) (9.5)
Accumulated other comprehensive loss (2.0) (1.5)
--------- ---------
Total stockholders' equity 666.5 538.0
--------- ---------
Total liabilities and stockholders' equity $1,627.3 $1,456.2
========= =========
Certain reclassifications of prior year's amounts have been made to
conform with current year's presentation.
PRELIMINARY
SEGMENT FINANCIAL DATA
(in millions)
Three Months Nine Months
Ended Ended
March 31 March 31
--------------- ---------------
2005 2004 2005 2004
------- ------- ------- -------
Net sales:
Specialty Metals $311.1 $253.2 $858.6 $640.8
Engineered Products 31.9 28.0 95.6 81.0
Intersegment (0.9) (0.8) (2.4) (1.9)
------- ------- ------- -------
Consolidated net sales $342.1 $280.4 $951.8 $719.9
======= ======= ======= =======
Operating income:
Specialty Metals $52.6 $19.8 $125.5 $38.8
Engineered Products 5.6 3.9 16.4 10.6
Corporate costs (5.3) (5.4) (15.3) (14.6)
Pension earnings, interest &
deferrals 3.7 1.2 11.1 2.0
Intersegment -- -- (0.4) --
------- ------- ------- -------
Consolidated operating income $56.6 $19.5 $137.3 $36.8
======= ======= ======= =======
Carpenter is organized in the following business units: Specialty
Alloys Operations, Dynamet, Carpenter Powder Products and Engineered
Products. For segment reporting, the Specialty Alloys Operations,
Dynamet and Carpenter Powder Products operating segments have been
aggregated into one reportable segment, Specialty Metals, because of
the similarities in products, processes, customers, distribution
methods and economic characteristics.
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, which is
comprised of the expected return on plan assets, interest costs on the
projected benefit obligations of the plans, and amortization of
actuarial gains and losses and prior service costs, is included under
the heading "Pension earnings, interest & deferrals."
Certain reclassifications of prior year's amounts have been made to
conform with current year's presentation.
PRELIMINARY
SELECTED FINANCIAL MEASURES
(in millions, except per share data)
Three Months Nine Months
Ended Ended
March 31 March 31
-------------- ---------------
FREE CASH FLOW 2005 2004 2005 2004
------ ------- ------- -------
Net cash provided from operations $52.4 $50.1 $104.8 $88.8
Purchases of plant, equipment and
software (4.0) (2.0) (8.8) (5.2)
Proceeds from disposals of plant and
equipment 0.4 1.7 0.6 2.3
Dividends paid (2.7) (2.4) (7.9) (6.9)
------ ------- ------- -------
Free cash flow $46.1 $47.4 $88.7 $79.0
====== ======= ======= =======
Free cash flow is a measure of cash generated which management
evaluates for alternative uses.
March December March
31 31 31
NET DEBT 2005 2004 2004
------- ------- -------
Accounts receivable purchase facility $--- $--- $10.0
Short-term debt 1.0 1.7 2.6
Current portion of long-term debt 20.2 20.2 0.1
Long-term debt, net of current portion 332.1 333.6 357.5
------- ------- -------
Total debt 353.3 355.5 370.2
Cash (148.2) (113.3) (85.3)
Marketable securities (88.3) (65.4) (19.2)
------- ------- -------
Net debt $116.8 $176.8 $265.7
======= ======= =======
Accumulated cash and marketable securities are expected to be used for
debt repayment when economically feasible until a targeted debt to
capital ratio is achieved.
Three Months Nine Months
Ended Ended
March 31 March 31
-------------- ---------------
NET PENSION EXPENSE 2005 2004 2005 2004
------ ------- ------- -------
Pension plan (income) expense ($0.6) $2.2 ($1.8) $6.6
Other postretirement benefits expense 1.2 1.4 3.6 5.8
------ ------- ------- -------
0.6 3.6 1.8 12.4
Income tax benefit (0.5) (1.6) (1.6) (4.9)
------ ------- ------- -------
Net pension expense $0.1 $2.0 $0.2 $7.5
====== ======= ======= =======
Net pension expense per share $0.00 $0.09 $0.01 $0.33
====== ======= ======= =======
Weighted average diluted common shares 25.4 23.6 25.0 23.3
====== ======= ======= =======
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion