Summary
Carpenter Technology Corporation (CRS) is a leading producer and distributor of specialty alloys and advanced materials serving critical applications in aerospace, defense, medical, energy, and transportation markets. In fiscal year 2017, the company reported net sales of $1.798 billion, a slight decrease of 1% from the prior year. While overall sales saw a modest decline, the company demonstrated resilience with a focus on operational improvements and strategic investments, including the acquisition of titanium powder technology and progress in implementing the Carpenter Operating Model. The company navigated market fluctuations by leveraging its diversified end-use markets and strong customer relationships, particularly in the aerospace and defense sector, which remained its largest revenue driver. Financially, CRS reported improved net income of $47.0 million in FY2017 compared to $11.3 million in FY2016, driven by operational cost efficiencies and stronger demand in the latter half of the year, offsetting challenges experienced earlier. The company also took steps to strengthen its financial position by refinancing its credit facility and proactively managing its pension liabilities. Despite some market softness, particularly in the transportation and industrial sectors, Carpenter Technology's commitment to innovation, such as its focus on additive manufacturing, and its strategic market positioning suggest a focus on long-term growth and value creation for shareholders.
Financial Highlights
55 data points| Revenue | $1.80B |
| Cost of Revenue | $1.50B |
| Gross Profit | $300.80M |
| R&D Expenses | $16.90M |
| SG&A Expenses | $176.10M |
| Operating Income | $121.50M |
| Interest Expense | $29.80M |
| Net Income | $47.00M |
| EPS (Basic) | $0.99 |
| EPS (Diluted) | $0.99 |
| Shares Outstanding (Basic) | 47.00M |
| Shares Outstanding (Diluted) | 47.10M |
Key Highlights
- 1Carpenter Technology operates in two main segments: Specialty Alloys Operations (SAO) and Performance Engineered Products (PEP).
- 2Net sales for fiscal year 2017 were $1.798 billion, a 1% decrease compared to fiscal year 2016.
- 3Net income significantly improved to $47.0 million in FY2017 from $11.3 million in FY2016, reflecting operational efficiencies and recovering market conditions.
- 4Aerospace and Defense remains the largest end-use market, accounting for 54% of net sales.
- 5The company acquired titanium powder technology from Puris LLC in February 2017, strengthening its position in additive manufacturing.
- 6Carpenter Technology has a long history of paying quarterly cash dividends, maintaining them at $0.18 per share for FY2017.
- 7The company's sales backlog increased to $438 million as of June 30, 2017, up from $306 million in the prior year.