1/25/2011 10:39:00 AM
NEWS BRIEFS
Carpenter Technology Forecasts Rising Fastener Demand

Carpenter Technology reported net sales for the second quarter of fiscal 2011 rose 42% to $375.6 million, with total pounds sold gaining 43%. Gross profit improved 38% to $49.1 million, driven by significantly higher volumes and better overall cost performance. Second quarter operating income increased to $12.1 million compared with $2 million a year earlier. 
 

First-half revenue gained 46% to $727.3 million, while net income improved to $16.9 million compared with a $5.9 million loss during the first half of the previous year.
 

“We are increasingly excited about how we are positioned for growth in our key end-markets of aerospace and energy,” stated CEO William Wulfsohn. “In aerospace, we expect to benefit from a strong projected build rate, a higher material content per plane and increasing overall market share with customers who are also improving their position in the industry.”
 

“In energy, our recently announced acquisition of Amega West gives us a stronger position in the fast growing oil and gas market with key customers, and expands the opportunities for our high-end alloys.”

In early January Carpenter Technology paid $54 million to acquire Amega West Services LLC, a Houston-based manufacturer and service provider of complex components for directional drilling equipment.

Aerospace market sales increased 27% to $150.2 million in the second quarter. Aerospace results reflect the fifth consecutive quarter of strong demand for engine components and returning demand for titanium fastener material. 
 

“Channel activity within the nickel and stainless fastener segments still indicates a pick-up in fastener demand during the second half of the fiscal year.”
 

Industrial market sales soared 60% to $88.2 million, reflecting increased demand and supply chain restocking for materials that go into niche industrial applications.
 

Energy market sales doubled to $41.8 million on “sharply higher demand for materials used in oil and gas applications and recovering demand for high value materials used in industrial gas turbines.”
 

Consumer market sales increased 49% to $35.7 million “due to demand for fasteners and electronic components used within housing and appliances.”
 

Automotive market sales gained 42% to $33.7 million.
 

International sales grew 42% to $122 million. Sales in Europe rose 47% on increased demand in Aerospace, Energy and Automotive. Asia revenues increased 39%, driven by “significant broad based growth in most markets with particular strength in the energy and automotive sectors.” Total international sales in the quarter represented 32.5% of total sales.
 

Carpenter Technology produces and distributes conventional and powder metal specialty alloys, including stainless steels, titanium alloys, tool steels and superalloys. Web: cartech.com  ©2011 GlobalFastenerNews.com

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