7/28/2011 1:31:00 PM
NEWS BRIEFS
Fastener Material Demand Shows ‘Sustained’ Growth
Carpenter Technology reported aerospace market sales, including fastener material, grew 24% to $194.1 million in the fourth quarter of fiscal 2011. Excluding surcharge revenue, aerospace sales rose 17% on 13% higher volume.
“Demand for titanium fastener material is approaching prior peak levels with continued strong demand expected in the coming year,” the company stated. “Demand for nickel and stainless fastener material has grown over the last three quarters and channel activity within these segments indicates demand growth should continue over the next several quarters.”
Overall fiscal Q4 sales jumped 33% to $483.6 million, including 31% organic growth. Gross profit increased soared 76% to $77 million higher volumes, an improved product mix, higher prices and better operating performance.
Despite strong closing quarter results, full-year sales dropped 39% to $1.67 billion, while operating income more than doubled to $131.6 million.
“Over the past year, we have seen strong, sustained demand for our products,” stated CEO William Wulfsohn. “As a result, we are actively seeking ways to expand our capacity to facilitate further growth.”
Among those initiatives is capacity investment in the company’s Dynamet titanium wire fastener business.
Carpenter revenue is expected to grow by more than 10% in fiscal 2012.
In July Carpenter Tech agreed to acquire Latrobe Specialty Metals in a transaction valued at $558 million.
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. ©2011 GlobalFastenerNews.com
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