10/30/2013 12:44:00 PM
NEWS BRIEFS
Carpenter Technology Reports Rising Titanium Fastener Demand

Carpenter Technology reported sales dropped 7% to $498.6 million in the first quarter of fiscal 2014. 

“The sales decline can be attributed to the continued Aerospace and Energy supply chain adjustments that impacted near- term order activity of premium and ultra-premium products,” the company stated. “This was partly offset by higher volumes of materials sold into the Transportation and Industrial & Consumer markets.”

Fiscal first-quarter operating income fell 11% to $55.8 million.

Aerospace and Defense segment sales declined 6% to $182.9 million, despite “solid year-over-year growth in titanium fastener demand.”

Other segment results:

Energy — Rig count down 1% compared to same quarter last year, but clear shift toward drill collar rentals versus purchases; gas turbine orders down versus prior year.

Medical — Volumes stabilizing but industry cost reduction efforts continue; expect modest demand recovery as OEM inventories reach structurally low levels; titanium pricing extremely competitive — lead times remained short.

Transportation — Strong volume growth — North American auto sales up 3 percent August year-to-date 2013 versus 2012; European light vehicle sales down 4 percent year-over-year for the first six months of 2013; Carpenter directly benefiting from strong demand growth for materials used in newest engine platform fuel delivery systems.

Industrial and Consumer — Strong demand for materials used in sporting goods, and industrial valve and infrastructure materials; softer demand within electronics and distribution channels.

The Wyomissing, PA-based company achieved the highest percentage increase in Q3 among companies tracked by the FIN Fastener Stock Index, gaining 29% after two consecutive quarters of share declines.

Carpenter Technologies reported net sales of $2.27 billion in fiscal 2013, which ended July 30. Full-year operating income grew 13% to $232.7 million.

Carpenter Technology manufactures and distributes heading wire/rod and bar products in specialty alloys, including stainless steels, titanium alloys, superalloys, and various engineered products. ©2013 GlobalFastenerNews.com

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Related Links:

• Carpenter Technology