10/27/2014 12:40:00 PM
NEWS BRIEFS
Fastener Material Revenue Rises at Carpenter Tech
Carpenter Technologies reported revenue for the first fiscal quarter of 2015 grew 10% to $549.8 million, while operating income slipped to $22.1 million and net income dropped to $13.5 million.
END MARKETS
Aerospace and Defense dipped 1% to $180.7 million on lower demand for certain high-value engine and defense related materials. Demand is seen returning in the aerospace distribution market but at lower average selling prices versus the prior year. Revenue for fastener materials (titanium and nickel) was up 9%.
Energy segment sales gained 15% to $67.8 million, as the directional rig count grew 13% versus the same quarter last year. The power generation market segment showed strong growth in the quarter versus the prior year and sequentially.
Medical revenue improved 7% to $26.7 million had a weaker mix, while titanium revenue was down and stainless instrument revenue was up. OEMs have resumed more normalized buying patterns as inventories have stabilized. The medical market environment remains extremely competitive with significant pricing pressure.
Transportation sales increased 20% to $30.7 million as North American vehicle production maintained its record high levels. Sales mix has improved versus the prior year, with the shift to higher value components for more demanding applications going into high-pressure/high-temperature engine systems.
Industrial and Consumer improved 15% to $98.6 million as demand growth in the consumer market segment was driven by high-value consumer electronics and sporting goods applications. Likewise there was strong year-over-year revenue growth in the semiconductor market segment and steady demand growth for premium tool steels.
Carpenter Technology manufactures and distributes heading wire/rod and bar products in specialty alloys, including stainless steels, titanium alloys, superalloys, and various engineered products.
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