Carpenter Technology Reports First Quarter Fiscal Year 2025 Results
Carpenter Technology (NYSE: CRS) reported strong first quarter fiscal 2025 results with record operating income of $113.6 million and earnings per share of $1.67. The company's adjusted operating income reached $117.2 million, up 70% year-over-year. The Specialty Alloys Operations segment delivered exceptional performance with operating income of $134.5 million, up 66% year-over-year, and improved operating margin of 26.3%. Net sales were $717.6 million, a 10% increase from the previous year. The company executed $32.1 million in share repurchases and expects full-year operating income to be at the high end of $460-500 million range, with projected adjusted free cash flow of $250-300 million.
Carpenter Technology (NYSE: CRS) ha riportato risultati straordinari per il primo trimestre dell'anno fiscale 2025, con un reddito operativo record di $113,6 milioni e un utile per azione di $1,67. Il reddito operativo rettificato dell'azienda ha raggiunto i $117,2 milioni, con un incremento del 70% rispetto all'anno precedente. Il segmento delle Operazioni in Leghe Speciali ha fornito prestazioni eccezionali, con un reddito operativo di $134,5 milioni, in aumento del 66% anno su anno, e un margine operativo migliorato del 26,3%. Le vendite nette sono state di $717,6 milioni, con un incremento del 10% rispetto all'anno precedente. L'azienda ha effettuato riacquisti di azioni per $32,1 milioni e prevede che il reddito operativo per l'intero anno si attesterà nella parte alta dell'intervallo di $460-500 milioni, con un flusso di cassa libero rettificato previsto di $250-300 milioni.
Carpenter Technology (NYSE: CRS) reportó resultados sólidos para el primer trimestre del año fiscal 2025, con un ingreso operativo récord de $113.6 millones y ganancias por acción de $1.67. El ingreso operativo ajustado de la empresa alcanzó los $117.2 millones, un aumento del 70% en comparación con el año anterior. El segmento de Operaciones de Aleaciones Especiales presentó un rendimiento excepcional, con un ingreso operativo de $134.5 millones, un incremento del 66% año tras año, y un margen operativo mejorado del 26.3%. Las ventas netas fueron de $717.6 millones, un aumento del 10% con respecto al año anterior. La empresa ejecutó $32.1 millones en recompra de acciones y espera que el ingreso operativo del año completo se sitúe en la parte alta del rango de $460-500 millones, con un flujo de caja libre ajustado proyectado de $250-300 millones.
카펜터 테크놀로지(Carpenter Technology, NYSE: CRS)가 2025 회계 연도 첫 분기 실적을 발표했으며, 운영 수익이 기록적인 1억 1,360만 달러, 주당 순이익이 1.67달러를 기록했습니다. 회사의 조정된 운영 수익은 1억 1,720만 달러에 달했으며, 이는 전년 대비 70% 증가한 수치입니다. 특수 합금 운영 부문은 운영 수익 1억 3,450만 달러를 기록하며 전년 대비 66% 증가한 뛰어난 성과를 보였고, 운영 마진은 26.3%로 향상되었습니다. 순매출은 7억 1,760만 달러로, 지난해보다 10% 증가했습니다. 회사는 3,210만 달러의 자사주 매입을 실행했으며, 연간 운영 수익이 4억 6천만에서 5억 달러 범위의 상단에 이를 것으로 예상하고 있으며, 조정된 자유 현금 흐름이 2억 5천만에서 3억 달러가 될 것으로 추정하고 있습니다.
Carpenter Technology (NYSE: CRS) a annoncé des résultats solides pour le premier trimestre de l'exercice 2025, avec un bénéfice d'exploitation record de 113,6 millions de dollars et un bénéfice par action de 1,67 dollar. Le bénéfice d'exploitation ajusté de l'entreprise a atteint 117,2 millions de dollars, en hausse de 70 % par rapport à l'année précédente. Le segment des opérations en alliages spéciaux a affiché des performances exceptionnelles avec un bénéfice d'exploitation de 134,5 millions de dollars, en hausse de 66 % par rapport à l'année précédente, et une marge d'exploitation améliorée de 26,3 %. Les ventes nettes se sont élevées à 717,6 millions de dollars, soit une augmentation de 10 % par rapport à l'année précédente. L'entreprise a effectué des rachats d'actions pour 32,1 millions de dollars et s'attend à ce que le bénéfice d'exploitation annuel se situe dans la partie supérieure de la fourchette de 460 à 500 millions de dollars, avec un flux de trésorerie disponible ajusté projeté de 250 à 300 millions de dollars.
Carpenter Technology (NYSE: CRS) berichtete für das erste Quartal des Geschäftsjahres 2025 über starke Ergebnisse mit einem Rekordbetriebsgewinn von 113,6 Millionen Dollar und einem Gewinn pro Aktie von 1,67 Dollar. Der bereinigte Betriebsgewinn des Unternehmens erreichte 117,2 Millionen Dollar, was einem Anstieg von 70 % im Vergleich zum Vorjahr entspricht. Der Speziallegierungsbetrieb erwies sich als außergewöhnlich leistungsstark mit einem Betriebsgewinn von 134,5 Millionen Dollar, was einem Anstieg von 66 % im Jahresvergleich entspricht, und einer verbesserten Betriebsrendite von 26,3 %. Der Nettoumsatz betrug 717,6 Millionen Dollar, was einem Anstieg von 10 % im Vergleich zum Vorjahr entspricht. Das Unternehmen führte Aktienrückkäufe in Höhe von 32,1 Millionen Dollar durch und erwartet für das Gesamtjahr einen Betriebsgewinn am oberen Ende des Bereichs von 460 bis 500 Millionen Dollar, mit einem prognostizierten bereinigten freien Cashflow von 250 bis 300 Millionen Dollar.
- Record Q1 operating income of $113.6 million, with adjusted operating income up 70% YoY
- SAO segment operating income increased 66% YoY to $134.5 million
- Operating margin improved to 26.3% from 19.4% YoY in SAO segment
- Net sales increased 10% YoY to $717.6 million
- Generated $40.2 million cash from operations and $13.3 million adjusted free cash flow
- Raised FY2025 guidance to high end of $460-500 million operating income range
- Recorded $3.6 million pre-tax restructuring and asset impairment charges
- Quarterly net sales decreased from $798.7 million in Q4 FY2024 to $717.6 million in Q1 FY2025
Insights
Delivered Record First Quarter Operating Income
Exceeded First Quarter Operating Income Guidance for Specialty Alloys Operations Segment
Expanded Operating Margins in Specialty Alloys Operations Segment
Generated Positive Adjusted Free Cash Flow
Repurchased Shares Against Authorized Share Repurchase Program
Strengthening FY25 Outlook
PHILADELPHIA, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Carpenter Technology Corporation (NYSE: CRS) (the “Company”) today announced financial results for the fiscal first quarter ended September 30, 2024. For the quarter, the Company reported operating income of
First Quarter Fiscal Year 2025 Highlights
- Delivered
$117.2 million of adjusted operating income, up 70 percent year-over-year and a record first quarter result - Realized adjusted earnings per diluted share of
$1.73 - Exceeded expectations in Specialty Alloys Operations (“SAO”) segment with operating income of
$134.5 million, up 66 percent year-over-year - Delivered adjusted operating margin of 26.3 percent in the SAO segment, up from 19.4 percent in the first quarter of the previous year
- Generated
$40.2 million of cash from operating activities,$13.3 million of adjusted free cash flow - Executed
$32.1 million in share repurchases against$400.0 million recent repurchase authorization
Fiscal Year 2025 Outlook
- Expect operating income to be at the high end of the previously provided range of
$460 million to$500 million - Project
$250 million to$300 million in adjusted free cash flow, which represents approximately 85 percent conversion rate - For the second quarter of fiscal year 2025, anticipate between
$116 million and$123 million in operating income - Well-positioned for continued growth beyond fiscal year 2025 with strong market demand outlook for our broad portfolio of specialized solutions, increasing productivity, optimizing product mix and pricing actions
“In the first quarter of fiscal year 2025, we delivered the most profitable first quarter in Carpenter Technology's history” said Tony R. Thene, President and CEO of Carpenter Technology.
“We continue to drive earnings momentum through improved productivity, product mix optimization and pricing actions. Notably, the SAO segment exceeded expectations with
“We are delivering record profits while navigating near-term commercial Aerospace supply chain uncertainty. Given the solid execution of the business, strong market position and unique manufacturing capabilities, we have the confidence to guide to the high end of the previously disclosed operating income range of
“We also expect to generate
“Carpenter Technology continues to exceed performance and outlook expectations. Having just completed a historic fiscal year 2024 and a strong start with our first quarter results, we are well positioned to achieve our accelerated goals and believe our earnings growth journey will extend far beyond fiscal year 2025.”
Financial Highlights
| Q1 | Q4 | Q1 | ||||||||
| ($ in millions, except per share amounts) | FY2025 | FY2024 | FY2024 | |||||||
| Net sales | $ | 717.6 | $ | 798.7 | $ | 651.9 | ||||
| Net sales excluding surcharge (a) | $ | 577.4 | $ | 635.8 | $ | 492.8 | ||||
| Operating income | $ | 113.6 | $ | 108.3 | $ | 69.0 | ||||
| Adjusted operating income excluding special item (a) | $ | 117.2 | $ | 125.2 | $ | 69.0 | ||||
| Net income | $ | 84.8 | $ | 93.6 | $ | 43.9 | ||||
| Earnings per diluted share | $ | 1.67 | $ | 1.85 | $ | 0.88 | ||||
| Adjusted earnings per diluted share (a) | $ | 1.73 | $ | 1.82 | $ | 0.88 | ||||
| Net cash provided from operating activities | $ | 40.2 | $ | 169.5 | $ | 7.4 | ||||
| Adjusted free cash flow (a) | $ | 13.3 | $ | 142.4 | $ | (14.6 | ) | |||
| (a) Non-GAAP financial measures explained in the attached tables | ||||||||||
Net sales for the first quarter of fiscal year 2025 were
Operating income was
Cash provided from operating activities in the first quarter of fiscal year 2025 was
Total liquidity, including cash and available revolver balance, was
Share Repurchase Program
During the three months ended September 30, 2024, the Company purchased 230,000 shares of its common stock on the open market for an aggregate of
Special Item
During the quarter ended September 30, 2024, the Company recorded pre-tax restructuring and asset impairment charges of
Conference Call and Webcast Presentation
Carpenter Technology will host a conference call and webcast presentation today, October 24, 2024, at 10:00 a.m. ET, to discuss the financial results of operations for the first quarter of fiscal year 2025. Please dial +1 412-317-9259 for access to the live conference call. Access to the live webcast will be available at Carpenter Technology’s website (https://www.carpentertechnology.com), and a replay will soon be made available at https://www.carpentertechnology.com. Presentation materials used during this conference call will be available for viewing and download at https://www.carpentertechnology.com.
Non-GAAP Financial Measures
This press release includes discussions of financial measures that have not been determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). A reconciliation of the non-GAAP financial measures to their most directly comparable financial measures prepared in accordance with GAAP, accompanied by reasons why the Company believes the non-GAAP measures are important, are included in the attached schedules.
About Carpenter Technology
Carpenter Technology Corporation is a recognized leader in high-performance specialty alloy materials and process solutions for critical applications in the aerospace and defense, medical, energy, transportation, and industrial and consumer markets. Founded in 1889, Carpenter Technology has evolved to become a pioneer in premium specialty alloys including nickel, cobalt, and titanium and material process capabilities that solve our customers' current and future material challenges. More information about Carpenter Technology can be found at https://www.carpentertechnology.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected, anticipated or implied. The most significant of these uncertainties are described in Carpenter Technology's filings with the Securities and Exchange Commission, including its report on Form 10-K for the fiscal year ended June 30, 2024, and the exhibits attached to that filing. They include but are not limited to: (1) the cyclical nature of the specialty materials business and certain end-use markets, including aerospace, defense, medical, energy, transportation, industrial and consumer, or other influences on Carpenter Technology's business such as new competitors, the consolidation of competitors, customers, and suppliers or the transfer of manufacturing capacity from the United States to foreign countries; (2) the ability of Carpenter Technology to achieve cash generation, growth, earnings, profitability, operating income, cost savings and reductions, qualifications, productivity improvements or process changes; (3) the ability to recoup increases in the cost of energy, raw materials, freight or other factors; (4) domestic and foreign excess manufacturing capacity for certain metals; (5) fluctuations in currency exchange and interest rates; (6) the effect of government trade actions; (7) the valuation of the assets and liabilities in Carpenter Technology's pension trusts and the accounting for pension plans; (8) possible labor disputes or work stoppages; (9) the potential that our customers may substitute alternate materials or adopt different manufacturing practices that replace or limit the suitability of our products; (10) the ability to successfully acquire and integrate acquisitions; (11) the availability of credit facilities to Carpenter Technology, its customers or other members of the supply chain; (12) the ability to obtain energy or raw materials, especially from suppliers located in countries that may be subject to unstable political or economic conditions; (13) Carpenter Technology's manufacturing processes are dependent upon highly specialized equipment located primarily in facilities in Reading and Latrobe, Pennsylvania and Athens, Alabama for which there may be limited alternatives if there are significant equipment failures or a catastrophic event; (14) the ability to hire and retain a qualified workforce and key personnel, including members of the executive management team, management, metallurgists and other skilled personnel; (15) fluctuations in oil and gas prices and production; (16) the impact of potential cyber attacks and information technology or data security breaches; (17) the ability of suppliers to meet obligations due to supply chain disruptions or otherwise; (18) the ability to meet increased demand, production targets or commitments; (19) the ability to manage the impacts of natural disasters, climate change, pandemics and outbreaks of contagious diseases and other adverse public health developments; (20) geopolitical, economic, and regulatory risks relating to our global business, including geopolitical and diplomatic tensions, instabilities and conflicts, such as the war in Ukraine, the war between Israel and HAMAS, the war between Israel and Hezbollah, Houthi attacks on commercial shipping vessels and other naval vessels as well as compliance with U.S. and foreign trade and tax laws, sanctions, embargoes and other regulations; and (21) the consequences of the announcement, maintenance or use of Carpenter Technology’s share repurchase program. Any of these factors could have an adverse and/or fluctuating effect on Carpenter Technology's results of operations. The forward-looking statements in this document are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this press release or as of the dates otherwise indicated in such forward-looking statements. Carpenter Technology undertakes no obligation to update or revise any forward-looking statements.
| PRELIMINARY CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share data) (Unaudited) | |||||||
| Three Months Ended | |||||||
| September 30, | |||||||
| 2024 | 2023 | ||||||
| NET SALES | $ | 717.6 | $ | 651.9 | |||
| Cost of sales | 541.3 | 527.8 | |||||
| Gross profit | 176.3 | 124.1 | |||||
| Selling, general and administrative expenses | 59.1 | 55.1 | |||||
| Restructuring and asset impairment charges | 3.6 | — | |||||
| Operating income | 113.6 | 69.0 | |||||
| Interest expense, net | 12.4 | 12.7 | |||||
| Other expense, net | 0.1 | 4.0 | |||||
| Income before income taxes | 101.1 | 52.3 | |||||
| Income tax expense | 16.3 | 8.4 | |||||
| NET INCOME | $ | 84.8 | $ | 43.9 | |||
| EARNINGS PER COMMON SHARE: | |||||||
| Basic | $ | 1.69 | $ | 0.89 | |||
| Diluted | $ | 1.67 | $ | 0.88 | |||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||
| Basic | 50.1 | 49.2 | |||||
| Diluted | 50.7 | 49.9 | |||||
| Cash dividends per common share | $ | 0.20 | $ | 0.20 | |||
| PRELIMINARY CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| September 30, | ||||||||
| 2024 | 2023 | |||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | 84.8 | $ | 43.9 | ||||
| Adjustments to reconcile net income to net cash provided from operating activities: | ||||||||
| Depreciation and amortization | 33.8 | 33.1 | ||||||
| Noncash restructuring and asset impairment charges | 2.5 | — | ||||||
| Deferred income taxes | (3.5 | ) | 2.4 | |||||
| Net pension expense | 6.2 | 5.9 | ||||||
| Share-based compensation expense | 4.7 | 4.4 | ||||||
| Net loss on disposals of property, plant and equipment | 0.2 | 0.3 | ||||||
| Changes in working capital and other: | ||||||||
| Accounts receivable | (3.4 | ) | 18.4 | |||||
| Inventories | (16.8 | ) | (67.8 | ) | ||||
| Other current assets | 2.6 | (19.9 | ) | |||||
| Accounts payable | 9.1 | 40.3 | ||||||
| Accrued liabilities | (68.5 | ) | (48.4 | ) | ||||
| Pension plan contributions | (9.6 | ) | (4.6 | ) | ||||
| Other postretirement plan contributions | (1.0 | ) | — | |||||
| Other, net | (0.9 | ) | (0.6 | ) | ||||
| Net cash provided from operating activities | 40.2 | 7.4 | ||||||
| INVESTING ACTIVITIES | ||||||||
| Purchases of property, plant, equipment and software | (26.9 | ) | (22.0 | ) | ||||
| Net cash used for investing activities | (26.9 | ) | (22.0 | ) | ||||
| FINANCING ACTIVITIES | ||||||||
| Dividends paid | (10.1 | ) | (9.9 | ) | ||||
| Purchases of treasury stock | (32.1 | ) | — | |||||
| Proceeds from stock options exercised | 3.7 | 13.8 | ||||||
| Withholding tax payments on share-based compensation awards | (22.5 | ) | (16.8 | ) | ||||
| Net cash used for financing activities | (61.0 | ) | (12.9 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | (1.2 | ) | 1.1 | |||||
| DECREASE IN CASH AND CASH EQUIVALENTS | (48.9 | ) | (26.4 | ) | ||||
| Cash and cash equivalents at beginning of year | 199.1 | 44.5 | ||||||
| Cash and cash equivalents at end of period | $ | 150.2 | $ | 18.1 | ||||
| PRELIMINARY CONSOLIDATED BALANCE SHEETS (in millions) (Unaudited) | ||||||||
| September 30, | June 30, | |||||||
| 2024 | 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 150.2 | $ | 199.1 | ||||
| Accounts receivable, net | 569.2 | 562.6 | ||||||
| Inventories | 749.4 | 735.4 | ||||||
| Other current assets | 91.5 | 94.1 | ||||||
| Total current assets | 1,560.3 | 1,591.2 | ||||||
| Property, plant, equipment and software, net | 1,329.9 | 1,335.2 | ||||||
| Goodwill | 227.3 | 227.3 | ||||||
| Other intangibles, net | 13.8 | 15.2 | ||||||
| Deferred income taxes | 7.6 | 7.5 | ||||||
| Other assets | 116.1 | 115.3 | ||||||
| Total assets | $ | 3,255.0 | $ | 3,291.7 | ||||
| LIABILITIES | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 273.3 | $ | 263.9 | ||||
| Accrued liabilities | 132.9 | 202.4 | ||||||
| Total current liabilities | 406.2 | 466.3 | ||||||
| Long-term debt | 694.5 | 694.2 | ||||||
| Accrued pension liabilities | 201.3 | 207.6 | ||||||
| Accrued postretirement benefits | 21.8 | 21.1 | ||||||
| Deferred income taxes | 171.3 | 174.1 | ||||||
| Other liabilities | 99.6 | 99.6 | ||||||
| Total liabilities | 1,594.7 | 1,662.9 | ||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Common stock | 285.2 | 284.9 | ||||||
| Capital in excess of par value | 342.6 | 352.6 | ||||||
| Reinvested earnings | 1,449.2 | 1,374.5 | ||||||
| Common stock in treasury, at cost | (325.6 | ) | (289.3 | ) | ||||
| Accumulated other comprehensive loss | (91.1 | ) | (93.9 | ) | ||||
| Total stockholders' equity | 1,660.3 | 1,628.8 | ||||||
| Total liabilities and stockholders' equity | $ | 3,255.0 | $ | 3,291.7 | ||||
| PRELIMINARY SEGMENT FINANCIAL DATA (in millions, except pounds sold) (Unaudited) | |||||||
| Three Months Ended | |||||||
| September 30, | |||||||
| 2024 | 2023 | ||||||
| Pounds sold ('000): | |||||||
| Specialty Alloys Operations | 50,100 | 49,992 | |||||
| Performance Engineered Products | 2,634 | 2,302 | |||||
| Intersegment | (1,166 | ) | (2,066 | ) | |||
| Consolidated pounds sold | 51,568 | 50,228 | |||||
| Net sales: | |||||||
| Specialty Alloys Operations | |||||||
| Net sales excluding surcharge | $ | 510.9 | $ | 417.3 | |||
| Surcharge | 134.2 | 152.8 | |||||
| Specialty Alloys Operations net sales | 645.1 | 570.1 | |||||
| Performance Engineered Products | |||||||
| Net sales excluding surcharge | 92.4 | 93.1 | |||||
| Surcharge | 8.4 | 8.7 | |||||
| Performance Engineered Products net sales | 100.8 | 101.8 | |||||
| Intersegment | |||||||
| Net sales excluding surcharge | (25.9 | ) | (17.6 | ) | |||
| Surcharge | (2.4 | ) | (2.4 | ) | |||
| Intersegment net sales | (28.3 | ) | (20.0 | ) | |||
| Consolidated net sales | $ | 717.6 | $ | 651.9 | |||
| Operating income (loss): | |||||||
| Specialty Alloys Operations | $ | 134.5 | $ | 80.8 | |||
| Performance Engineered Products | 7.3 | 9.1 | |||||
| Corporate | (28.0 | ) | (21.3 | ) | |||
| Intersegment | (0.2 | ) | 0.4 | ||||
| Consolidated operating income | $ | 113.6 | $ | 69.0 | |||
The Company has two reportable segments, Specialty Alloys Operations (“SAO”) and Performance Engineered Products (“PEP”).
The SAO segment is comprised of Carpenter's major premium alloy and stainless steel manufacturing operations. This includes operations performed at mills primarily in Reading and Latrobe, Pennsylvania and surrounding areas as well as South Carolina and Alabama.
The PEP segment is comprised of the Company’s differentiated operations. This segment includes the Dynamet titanium business, the Carpenter Additive business and the Latrobe and Mexico distribution businesses. The businesses in the PEP segment are managed with an entrepreneurial structure to promote flexibility and agility to quickly respond to market dynamics. It is our belief this model will ultimately drive overall revenue and profit growth. The pounds sold data above for the PEP segment includes only the Dynamet and Additive businesses.
Corporate costs are comprised of executive and director compensation, and other corporate facilities and administrative expenses not allocated to the segments. Also included are items that management considers not representative of ongoing operations and other specifically-identified income or expense items.
The service cost component of net pension expense, which represents the estimated cost of future pension liabilities earned associated with active employees, is included in the operating results of the business segments. The residual net pension expense is included in other expense, net, and is comprised of the expected return on plan assets, interest costs on the projected benefit obligations of the plans, amortization of actuarial gains and losses and prior service costs.
| PRELIMINARY NON-GAAP FINANCIAL MEASURES (in millions, except per share data) (Unaudited) | |||||||||
| ADJUSTED OPERATING MARGIN EXCLUDING SURCHARGE REVENUE AND SPECIAL ITEM | Three Months Ended | ||||||||
| September 30, | |||||||||
| 2024 | 2023 | ||||||||
| Net sales | $ | 717.6 | $ | 651.9 | |||||
| Less: surcharge revenue | 140.2 | 159.1 | |||||||
| Net sales excluding surcharge revenue | $ | 577.4 | $ | 492.8 | |||||
| Operating income | $ | 113.6 | $ | 69.0 | |||||
| Special item: | |||||||||
| Restructuring and asset impairment charges | 3.6 | — | |||||||
| Adjusted operating income excluding special item | $ | 117.2 | $ | 69.0 | |||||
| Operating margin | 15.8 | % | 10.6 | % | |||||
| Adjusted operating margin excluding surcharge revenue and special item | 20.3 | % | 14.0 | % | |||||
| ADJUSTED SEGMENT OPERATING MARGIN EXCLUDING SURCHARGE REVENUE | Three Months Ended | |||||||
| September 30, | ||||||||
| 2024 | 2023 | |||||||
| Specialty Alloys Operations | ||||||||
| Net sales | $ | 645.1 | $ | 570.1 | ||||
| Less: surcharge revenue | 134.2 | 152.8 | ||||||
| Net sales excluding surcharge revenue | $ | 510.9 | $ | 417.3 | ||||
| Operating income | $ | 134.5 | $ | 80.8 | ||||
| Operating margin | 20.8 | % | 14.2 | % | ||||
| Adjusted operating margin excluding surcharge revenue | 26.3 | % | 19.4 | % | ||||
| ADJUSTED SEGMENT OPERATING MARGIN EXCLUDING SURCHARGE REVENUE | Three Months Ended | |||||||
| September 30, | ||||||||
| 2024 | 2023 | |||||||
| Performance Engineered Products | ||||||||
| Net sales | $ | 100.8 | $ | 101.8 | ||||
| Less: surcharge revenue | 8.4 | 8.7 | ||||||
| Net sales excluding surcharge revenue | $ | 92.4 | $ | 93.1 | ||||
| Operating income | $ | 7.3 | $ | 9.1 | ||||
| Operating margin | 7.2 | % | 8.9 | % | ||||
| Adjusted operating margin excluding surcharge revenue | 7.9 | % | 9.8 | % | ||||
Management believes that removing the impact of raw material surcharge from operating margin provides a more consistent basis for comparing results of operations from period to period, thereby permitting management to evaluate performance and investors to make decisions based on the ongoing operations of the Company. In addition, management believes that excluding the impact of special items from operating margin is helpful in analyzing the operating performance of the Company, as these items are not indicative of ongoing operating performance. Management uses its results excluding these amounts to evaluate its operating performance and to discuss its business with investment institutions, the Company’s board of directors and others.
| ADJUSTED EARNINGS PER SHARE EXCLUDING SPECIAL ITEM | Earnings Before Income Taxes | Income Tax Expense | Net Income | Earnings Per Diluted Share* | ||||||||||
| Three Months Ended September 30, 2024, as reported | $ | 101.1 | $ | (16.3 | ) | $ | 84.8 | $ | 1.67 | |||||
| Special item: | ||||||||||||||
| Restructuring and asset impairment charges | 3.6 | (0.9 | ) | 2.7 | 0.06 | |||||||||
| Three Months Ended September 30, 2024, as adjusted | $ | 104.7 | $ | (17.2 | ) | $ | 87.5 | $ | 1.73 | |||||
| * Impact per diluted share calculated using weighted average common shares outstanding of 50.7 million for the three months ended September 30, 2024. | ||||||||||||||
| ADJUSTED EARNINGS PER SHARE EXCLUDING SPECIAL ITEM | Earnings Before Income Taxes | Income Tax Expense | Net Income | Earnings Per Diluted Share* | ||||||||||
| Three Months Ended September 30, 2023, as reported | $ | 52.3 | $ | (8.4 | ) | $ | 43.9 | $ | 0.88 | |||||
| Special item: | ||||||||||||||
| None reported | — | — | — | — | ||||||||||
| Three Months Ended September 30, 2023, as adjusted | $ | 52.3 | $ | (8.4 | ) | $ | 43.9 | $ | 0.88 | |||||
| * Impact per diluted share calculated using weighted average common shares outstanding of 49.9 million for the three months ended September 30, 2023. | ||||||||||||||
Management believes that earnings per share adjusted to exclude the impact of the special items is helpful in analyzing the operating performance of the Company, as these items are not indicative of ongoing operating performance. Management uses its results excluding these amounts to evaluate its operating performance and to discuss its business with investment institutions, the Company’s board of directors and others.
| Three Months Ended | ||||||||
| September 30, | ||||||||
| ADJUSTED FREE CASH FLOW | 2024 | 2023 | ||||||
| Net cash provided from operating activities | $ | 40.2 | $ | 7.4 | ||||
| Purchases of property, plant, equipment and software | (26.9 | ) | (22.0 | ) | ||||
| Adjusted free cash flow | $ | 13.3 | $ | (14.6 | ) | |||
Management believes that the presentation of adjusted free cash flow provides useful information to investors regarding our financial condition because it is a measure of cash generated which management evaluates for alternative uses. It is management's current intention to use excess cash to fund investments in capital equipment, acquisition opportunities and consistent dividend payments. Additionally, we will discretionarily use excess cash for a share repurchase program up to
| PRELIMINARY SUPPLEMENTAL SCHEDULE (in millions) (Unaudited) | |||||||
| Three Months Ended | |||||||
| September 30, | |||||||
| NET SALES BY END-USE MARKET | 2024 | 2023 | |||||
| End-Use Market Excluding Surcharge Revenue: | |||||||
| Aerospace and Defense | $ | 349.9 | $ | 260.9 | |||
| Medical | 73.4 | 66.6 | |||||
| Energy | 39.4 | 29.2 | |||||
| Transportation | 21.1 | 29.2 | |||||
| Industrial and Consumer | 72.4 | 79.4 | |||||
| Distribution | 21.2 | 27.5 | |||||
| Total net sales excluding surcharge revenue | 577.4 | 492.8 | |||||
| Surcharge revenue | 140.2 | 159.1 | |||||
| Total net sales | $ | 717.6 | $ | 651.9 | |||
| Investor Inquiries: John Huyette +1 610-208-2061 jhuyette@cartech.com | Media Inquiries: Heather Beardsley +1 610-208-2278 hbeardsley@cartech.com |
FAQ
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