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CARPENTER TECHNOLOGY REPORTS LOWER EARNINGS FOR SECOND FISCAL QUARTER

 READING, Pa., Jan. 20 /PRNewswire/ -- Carpenter Technology Corporation (NYSE: CRS) today reported net income of $3 million for its second fiscal quarter ended Dec. 31, 1992, a $3.2 million decrease from last year.
 Earnings per share were $.33, compared with $.70 for the same period a year ago. Sales for the second quarter were $123.0 million, down from $134.1 million last year.
 For the first six months of the current fiscal year, net income was $6.8 million, compared with $8.4 million reported for the same period last year. Earnings per share were $.75, down 20 percent compared with the reported $.94 last year.
 The decrease in net income in the second quarter was chiefly the result of lower unit volume shipments, corresponding lower production levels and softness in selling prices in most product lines. The lower shipment level was a result of the sluggish economy, inventory reduction programs at many key customers, and a significantly higher level of imports of stainless rod.
 The lower selling prices and unit volume shipments were partially offset by lower raw material costs and a reduction in salaried staffing levels.
 Progress in the company's programs to reduce inventories resulted in favorable LIFO accounting effects on earnings of $.04 per share in the second quarter and $.08 per share in the six months of fiscal 1993. There were no LIFO effects a year ago.
 Robert W. Cardy, chairman, president and chief executive officer, said, "We were disappointed with the lower unit volume and earnings and actions are underway to reverse this trend. We are continuing to seek additional incremental business in selected markets with higher volume potential and are having success. In addition, we are a participant, along with four other steel manufacturing companies, in the filing of dumping suits against stainless rod competitors in France, India and Brazil."
 He added that the order levels are improving in the power generation, electronics and automotive markets but remain weak in the aerospace and energy markets. Shipments rates in January have increased over the levels of the December quarter.
 The company's inventory reduction program remains on target and is expected to have a favorable impact on the financial results during the second half of the current fiscal year.
 CARPENTER TECHNOLOGY CORPORATION
 SUMMARY OF SALES AND EARNINGS
 (Unaudited; In Thousands, Except Per-Share Data)
 Periods ended Three months Six months
 Dec. 31 1992 1991 1992 1991
 Net sales $123,026 $134,118 $262,412 $260,648
 Costs and expenses:
 Cost of sales 93,463 100,331 202,515 199,085
 Selling and
 administrative expenses 20,256 20,224 40,291 39,884
 Interest expense 4,916 4,673 10,241 9,484
 Other expense (income) (391) (634) (1,315) (746)
 Total 118,244 124,594 251,732 247,707
 Income before income taxes 4,782 9,524 10,680 12,941
 Income taxes 1,759 3,278 3,856 4,504
 Net income 3,023 6,246 6,824 8,437
 Earnings per share $.33 $.70 $.75 $.94
 Cash dividends per share .60 .60 1.20 1.20
 Average shares outstanding 7,965 8,388 8,057 8,461
 /delval/
 -0- 1/20/93
 /CONTACT: John A. Schuler, treasurer of Carpenter Technology, 215-208-2165/
 (CRS)


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

MP-JS -- PH008 -- 6814 01/20/93 10:52 EST
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Date:Jan 20, 1993
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