Summary
Carpenter Technology Corporation (CRS) reported a net loss of $29.4 million, or $0.61 per diluted share, for the three months ended December 31, 2021. This marks an improvement from the $84.9 million net loss, or $1.76 per diluted share, in the same period of the prior year. The company saw a 14% increase in net sales to $396.0 million, driven by improving demand across most end-use markets. However, operational challenges, including an unplanned press outage at the Reading facility, labor shortages, and supply chain disruptions, impacted profitability. The Specialty Alloys Operations (SAO) segment experienced an operating loss, while the Performance Engineered Products (PEP) segment showed improved operating income. For the six months ended December 31, 2021, Carpenter Technology reported a net loss of $44.1 million, or $0.91 per diluted share, compared to a net loss of $132.0 million, or $2.74 per diluted share, in the prior year period. Net sales increased by 12% to $783.6 million. The company continues to manage its working capital, with a notable increase in inventory levels in the recent period to meet growing demand and address operational challenges. Despite operational headwinds, the company maintains a strong liquidity position with $96.9 million in cash and cash equivalents and $294.7 million in available borrowing capacity.
Financial Highlights
49 data points| Revenue | $396.00M |
| Gross Profit | $13.10M |
| SG&A Expenses | $44.60M |
| Operating Income | -$31.50M |
| Interest Expense | $10.10M |
| Net Income | -$29.40M |
| EPS (Basic) | $-0.61 |
| EPS (Diluted) | $-0.61 |
| Shares Outstanding (Basic) | 48.60M |
| Shares Outstanding (Diluted) | 48.60M |
Key Highlights
- 1Net sales increased 14% year-over-year to $396.0 million for the three months ended December 31, 2021, indicating improving demand across key markets.
- 2Despite increased sales, the company reported a net loss of $29.4 million ($0.61/share) for the quarter, though this is an improvement from the prior year's net loss of $84.9 million ($1.76/share).
- 3Operational challenges, including an unplanned press outage, labor shortages, and supply chain disruptions, negatively impacted financial performance, particularly in the Specialty Alloys Operations (SAO) segment.
- 4The Performance Engineered Products (PEP) segment showed improved operating income, driven by strong demand in the Medical end-use market.
- 5For the six months ended December 31, 2021, net sales grew 12% to $783.6 million, with a net loss of $44.1 million ($0.91/share), also an improvement from the prior year's loss.
- 6Inventory levels increased significantly ($109.8 million in six months) to support growing demand and mitigate operational challenges, leading to negative free cash flow of $187.6 million for the six-month period.
- 7The company ended the period with a strong liquidity position, including $96.9 million in cash and cash equivalents and $294.7 million in available borrowing capacity under its credit facility.