Carpenter Technology reports fourth quarter and full year 2020 results

July 30, 2020

Carpenter Technology Corporation, Philadelphia, Pennsylvania, USA, has announced financial results for its fiscal fourth quarter and year ended June 30, 2020. Over the quarter, the company reported a net loss of $118.4 million, with a net profit of $1.5 million reported over the full fiscal year 2020. 

Net sales for the group’s fiscal year 2020 were reported to be $2,181.1 million, down from FY2019 which had net sales of $2,380.2 million. The company’s reported operating income for the fiscal year 2020 of $25.3 million was a considerable drop from 2019’s figure of $241.4 million.

Net sales for the fourth quarter were $437.3 million compared with $641.4 million in the fourth quarter of fiscal year 2019, a decrease of $204.1 million (32%), on 32% lower volume. The group made an operating loss of $148.2 million, compared to operating income of $67.9 million in the same period last year. 

“We generated strong free cash flow in the quarter which further strengthened our already healthy liquidity position via a significant reduction in inventory,” explained Tony R Thene, president and CEO of Carpenter Technology. 

“The strategic decision to accelerate our inventory reduction plan to drive cash flow negatively impacted our operating results in the quarter. We also continue to deal with the incremental operating costs and reduced productivity associated with COVID-19 and its impact on our operations.”

“With that said, our focus is clearly on protecting our near-term liquidity as we actively manage our business through the current uncertainty caused by the global pandemic,” he continued. “In addition, we have executed targeted cost reductions and portfolio restructurings expected to deliver annual cost savings in the range of $60 to $70 million.”

Thene noted that “demand patterns have been broadly impacted by COVID-19,” but stated that Carpenter is working closely with customers across its end-use markets as supply chains continue to adjust. “While COVID-19 has created headwinds for our industry,” he commented, “we have successfully enriched and extended supply agreements with key aerospace, medical and semiconductor customers.”

In the fourth quarter, Carpenter’s Specialty Alloys Operations (SAO), which manufactures premium alloys and stainless steel saw net sales of $369.4 million (2019: $532 million) and $1,831.6 million for the full year (2019: $1,967.3 million).

Carpenter’s Performance Engineered Products segment, the segment of the company that includes the Dynamet titanium business and the Carpenter Powder Products (CPP) business, achieved net sales for the fourth quarter 2020 of $77.1 million, down from $126.4 million in the fourth quarter of fiscal year 2019. For the full year 2020, the segment reported net sales of $401.1 million, down from $479.8 million in 2019.

www.carpentertechnology.com

Latest Industry News

Download the latest issue of PM Review

Our latest issue is now available to download in PDF format, free of charge.

As well as an extensive Powder Metallurgy industry news section, this 92-page issue includes the following exclusive articles and reports:

  • The MPIF reflects on the state of the North American Powder Metallurgy industry in 2020
  • Next-level defect detection with advanced Acoustic Resonance Inspection
  • A fully-integrated automated production cell for increased PM productivity
  • MPIF Powder Metallurgy Design Excellence Awards showcase range of demanding applications
  • The micro-ingot route: A variant of the PM process that could offer new opportunities for the PM industry
  • More information

Industry News

E-newsletter

Sign up to our free e-newsletter, sent weekly to industry professionals around the world. We'll also let you know each time a new issue of PM Review magazine is available.

Subscribe for a FREE digital magazine

PM Review is the leading international magazine for the Powder Metallurgy industry.
Published four times a year, it is available as a free download or through a print subscription

Connect with us

Powder Metallurgy: The original net-shape production process

Powder Metallurgy components are relied upon by a wide variety of manufacturing industries, from automotive to power tools, household appliances, chemical engineering, filtration and more.

The main reason for the technology’s success is its cost-effectiveness at producing high volumes of net-shape components, combined with its ability to allow the manufacture of products that, because of the production processes, simply cannot be manufactured by other methods.

To discover more about how the technology has revolutionised component production, browse our Introduction to Powder Metallurgy.

Latest industry news

Copy link
Powered by Social Snap