Summary
Carpenter Technology Corporation (CRS) reported its fiscal second-quarter results for the period ending December 31, 2009. The company experienced a significant year-over-year decline in net sales, down 27% to $263.8 million, impacted by broad-based weakness across key end-use markets such as aerospace, industrial, and energy. This decline was largely driven by lower shipment volumes, reflecting challenging macroeconomic conditions and inventory adjustments within the supply chain. Despite the revenue drop, the company managed its expenses effectively, leading to a modest operating income of $2.0 million. However, net income was significantly lower than the prior year, at $3.5 million ($0.08 per diluted share), compared to $29.8 million ($0.68 per diluted share) in the same period last year. A key factor impacting profitability was a substantial increase in net pension expense. Management expressed optimism about sequential improvements in the first quarter of fiscal year 2010 and expects continued growth in the latter half of the fiscal year.
Financial Highlights
27 data points| Revenue | $263.80M |
| Cost of Revenue | $228.20M |
| Gross Profit | $35.60M |
| SG&A Expenses | $33.60M |
| Operating Income | $2.00M |
| Interest Expense | $4.50M |
| Net Income | $9.30M |
| EPS (Basic) | $0.08 |
| EPS (Diluted) | $0.08 |
| Shares Outstanding (Basic) | 44.00M |
| Shares Outstanding (Diluted) | 44.20M |
Key Highlights
- 1Net sales decreased by 27% to $263.8 million for the three months ended December 31, 2009, compared to $361.8 million in the prior year period.
- 2Net income for the quarter was $3.5 million ($0.08 per diluted share), a substantial decrease from $29.8 million ($0.68 per diluted share) in the prior year quarter.
- 3Operating income for the quarter was $2.0 million, down significantly from $39.7 million in the prior year quarter, primarily due to lower gross profit.
- 4Net pension expense increased significantly, impacting profitability. Net pension expense per diluted share rose to $0.21 from $0.06 year-over-year.
- 5The company generated positive free cash flow of $24.7 million for the six months ended December 31, 2009, a marked improvement from negative $72.1 million in the prior year period, driven by working capital management.
- 6Total assets stood at $1,508.3 million as of December 31, 2009, with total liabilities at $881.5 million and total stockholders' equity at $626.8 million.
- 7The company renewed its revolving credit facility in November 2009, providing $200 million in borrowing capacity, with $196 million available as of December 31, 2009.