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CARPENTER TECHNOLOGY REPORTS HIGHER SALES AND INCOME FOR THE YEAR ENDED JUNE 30, 1993, BEFORE EFFECTS OF NEW ACCOUNTING RULES

 READING, Pa., July 26 /PRNewswire/ -- Carpenter Technology Corporation (NYSE: CRS) today reported income of $26.5 million for its fiscal year ending June 30, 1993, before the impact of a previously announced cumulative effect of adopting two new accounting standards for postretirement benefits and income taxes.
 Fiscal year 1993 income increased 78 percent over income in 1992, excluding the effect of an extraordinary charge in the prior year. Earnings per share before the cumulative effect of the accounting changes were $3.11 this year vs. $1.63 per share last year, excluding the effect of the $.15 per share extraordinary charge.
 Before the cumulative and ongoing effects of the new accounting standards, earnings for the full fiscal 1993 were $32.6 million, or $3.88 per share.
 Adoption of the new accounting standards as of July 1, 1992, resulted in a cumulative one-time, non-cash charge of $74.7 million after taxes, or $9.32 per share, reflecting the retroactive application of the standards to prior years. This change caused a net loss of $48.1 million, or $6.21 per share, for fiscal year 1993, compared with net income of $13.6 million, or $1.48 per share, for fiscal year 1992. The new accounting standards also increased ongoing expenses which reduced fiscal 1993 earnings by $6.1 million after taxes, or $.77 per share.
 The increase in income for the year, before the accounting changes, resulted chiefly from the company's successful actions to reduce inventories and salaried staff levels. In addition, last year earnings were reduced by a $.59 per share special charge for salaried staff reductions. Inventory reductions generated significant cash during the year and produced a positive effect on earnings because of the use of the LIFO method of inventory valuation. The LIFO method values the inventory sold at historical costs which were below current costs. This benefit was offset partially by the unfavorable effect of operating production facilities at lower capacity rates. The favorable LIFO accounting effect on fiscal 1993 after tax earnings was $1.67 per share.
 For the fiscal year 1993, net sales were $576.2 million, 1 percent higher than the $570.2 million reported for the prior year. Unit volume shipments were 6 percent higher than the prior year.
 For the fourth quarter ended June 30, 1993, the company reported net income of $11.8 million, or $1.42 per share, which included an ongoing negative effect of the accounting changes of $1.6 million after taxes, or $.21 per share, versus a net loss of $.8 million, or $.14 per share, for the same period a year ago. The improved earnings were chiefly the result of higher sales and the beneficial effect of the company's inventory reduction programs. In addition, last year's fourth quarter was penalized by the $.59 per share special charge for staff reductions. The favorable LIFO accounting effect on after tax earnings was $.79 per share for the fourth quarter of fiscal year 1993.
 Sales for the fourth quarter were $158.5 million, up 8 percent from $146.7 million reported for the same period last year. Unit volume shipments were 18 percent higher.
 Robert W. Cardy, chairman, president and chief executive officer, said, "We are pleased with the results of programs to seek incremental business in a very tough economy. Our margins throughout the year were under intense pressure, particularly from the effect of significantly increased imports."
 He added that increased customer focus, quality improvements, cost containment programs and inventory reductions were the chief positive factors contributing to the company's improved operating results.
 Carpenter is a leading manufacturer and distributor of stainless steel bar and wire and other specialty alloy products.
 CARPENTER TECHNOLOGY CORPORATION
 (In Thousands, Except Per-Share Data)
 Periods ended Three months Year
 June 30 1993 1992 1993 1992
 (Unaudited)
 Net sales $158,466 $146,706 $576,248 $570,200
 Costs and expenses:
 Cost of sales 117,385 114,862 436,057 439,785
 Selling and
 administrative expenses 21,105 19,808 82,214 80,829
 Interest expense 5,164 5,328 20,594 19,637
 Special charge --- 7,500 --- 7,500
 Other expense (income) (3,509) 438 (5,416) (378)
 Total 140,145 147,936 533,449 547,373
 Income (loss) before income
 taxes, extraordinary charge
 and cumulative effects of
 changes in accounting
 principles 18,321 (1,230) 42,799 22,827
 Income taxes 6,555 (429) 16,265 7,943
 Income (loss) before
 extraordinary charge and
 cumulative effects of changes
 in accounting principles 11,766 (801) 26,534 14,884
 Cumulative effects of changes
 in accounting principles --- --- (74,676) ---
 Extraordinary charge, net of
 income taxes --- --- --- (1,238)
 Net income (loss) 11,766 (801) (48,142) 13,646
 Earnings (loss) per share:
 Income (loss) before
 extraordinary charge and
 cumulative effects of changes
 in accounting principles $1.42 $(.14) $3.11 $1.63
 Cumulative effects of changes
 in accounting principles --- --- (9.32) ---
 Extraordinary charge after taxes --- --- --- (.15)
 Net income (loss) 1.42 (.14) (6.21) 1.48
 Cash dividends per share .60 .60 2.40 2.40
 Average shares outstanding 7,963 8,209 8,009 8,342
 /delval/
 -0- 7/26/93
 /CONTACT: John A. Schuler, treasurer of Carpenter Technology, 215-208-2165/
 (CRS)


CO: Carpenter Technology Corporation ST: Pennsylvania IN: MNG SU: ERN

MK-LJ -- PH009 -- 5634 07/26/93 11:03 EDT
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Publication:PR Newswire
Date:Jul 26, 1993
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