Carpenter Technology Says Commerce Department Ruling Key Step Toward Fair Pricing For Domestic Stainless Bar.

Business Editors

READING, Pa.--(BUSINESS WIRE)--Jan. 16, 2002

A U.S. Department of Commerce trade case ruling today is another important step toward obtaining fair pricing in the domestic stainless steel bar market, according to Carpenter Technology Corporation (NYSE:CRS).

The Commerce Department released final dumping and countervailing duty margins on stainless steel bar shipped into the United States by France, Germany, Italy, South Korea and the United Kingdom. The margins range up to 126 percent, depending on the country and producers. No anti-dumping duties were assessed against Taiwan producers.

In December 2000, Carpenter and four other domestic stainless steel bar manufacturers filed a broad dumping action against producers in the six countries. These producers accounted for almost two-thirds of stainless bar imports in 2000.

The stainless bar petition asserts that domestic manufacturers have been forced to lower their U.S. prices to injurious levels to compete against dumped imports, resulting in lower revenues and profits. Stainless steel bar is Carpenter's highest volume stainless product.

"The final duty rates assessed against stainless bar imports from the five countries should go a long way toward correcting the current dumping practices and restoring an even playing field," said William J. Pendleton, Carpenter's director of corporate affairs.

The International Trade Commission is expected to make a final injury determination in the case on or before February 20. If the ITC finds injury to U.S. stainless bar producers, the final anti-dumping duties will go into effect.

Dumping - selling a product in the United States at less than the price in the home market, or below cost - violates World Trade Organization rules and U.S. trade laws.

In today's ruling, the final dumping margin for each country and producer are:

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Country                    Producer           Final Antidumping Duty
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France          o  Ugine Savoie Produits Long           3.9%
                o  Aubert et Duval                     71%
                o  All Others                           3.9%
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Germany         o  BGH Group                           16.62%
                o  Edelstahlwerke Witten-Krefeld       15.54%
                o  Krupp Edelstahlprofile GmBH         32.24%
                o  Einsal                               4.31%
                o  All Others                          17.77%
----------------------------------------------------------------------
Italy           o  Trafilierie Bedini                  de minimus
                o  Cogne Acciai Speciali SrL           33%
                o  Acciaiera Foroni SpA                 7.07%
                o  Rodacciai SpA                        5.89%
                o  Acciaierie Valbruna SrL              2.5%
                o  All Others                           3.81%
----------------------------------------------------------------------
South Korea     o  Changwon Specialty Steels           13.38%
                o  Dong Bang Special Steel Co., Ltd.    4.75%
                o  All Others                          11.3%
----------------------------------------------------------------------
United Kingdom  o  Corus Engineering Steels, Ltd.       4.48%
                o  Crownridge Stainless Steels, Ltd.  125.77%
                o  Firth Rixson                       125.77%
                o  All Others                           4.48%
----------------------------------------------------------------------

The trade case also charged that Italian producers benefit from numerous government subsidy programs and called for the imposition of countervailing duties on stainless bar imports from Italy. Today's Commerce Department announcement included the imposition of a 13 percent countervailing duty on certain Italian producers.

Carpenter and other domestic producers also have four dumping orders in place on stainless bar imports from Brazil, India, Japan and Spain as a result of the recent five-year extension of the orders and duties originally imposed in 1995. In addition, stainless bar products are among those included in the steel industry Section 201 trade investigation initiated last year by President Bush.

A decision on the Section 201 action is expected in early March.

Carpenter, based in Wyomissing, Pa., manufactures and distributes stainless steel, specialty alloys including titanium alloys, and various engineered products. In fiscal 2001 (ended June 30, 2001), the company's sales were approximately $1.3 billion. More information about Carpenter is available at www.cartech.com.