7/29/2010 11:13:00 AM
NEWS BRIEFS
Carpenter Tech Reports Uneven Fastener Demand
Demand for Carpenter Technology Corp.’s fastener products produced mixed results in the three-month period ended June 30.
Aerospace fastener sales remain “stagnant,” while automotive and consumer fastener sales grew during the final quarter of fiscal 2010.
Aerospace sales, including fasteners, rose 26% to $153.7 million. Excluding surcharge revenue, aerospace sales gained 16% on 22% higher volume. Aerospace results reflect continued strong demand and share gain for engine components, which were partially offset by still stagnant demand for fasteners.
“While fastener supply chain inventories remain high, better demand balance is expected by the end of the calendar year,” the company stated.
Meanwhile, increased demand for automotive engine fasteners drove automotive segment sales up 125% to $30.6 million as volumes grew 134%.
Consumer market sales jumped 91% to $38.5 million, “driven by supply chain inventory restocking of bi-metallic strip and stainless fasteners.”
Overall sales increased 42% to $364.2 million during fiscal Q4, while gross profit rose to $43.7 million compared with $8.4 million in the fourth quarter of fiscal 2009.
“During this quarter, we made a decision to support growing customer demand by ramping up production and increasing inventories,” stated company chairman Greg Pratt.
Full-year sales at Carpenter Technology dropped 12% to $1.2 billion, with operating income declining 32% to $49.6 million.
In June Carpenter Technology named William Wulfsohn as its new president and CEO.
Wulfsohn, a member of the Carpenter Board of Directors since April 2009, worked as senior vice president of industrial coatings with Pittsburgh-based PPG Industries, he was responsible for automotive OEM and industrial and packaging coatings, as well as Asia/Pacific. Prior to joining PPG in 2003, he worked for Honeywell International as a vice president.
Based in Wyomissing, PA, Carpenter Technology manufactures and distributes heading wire/rod and bar products in specialty alloys, including stainless steels, titanium alloys, superalloys, and various engineered products. ©2010 GlobalFastenerNews.com
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