Carpenter Technology to Invest $100 Million in Soft Magnetic Capabilities and New Equipment in Reading, PA Facility
March 26 2018 - 11:15AM
Investment timing accelerated by tax savings
associated with the Tax Cuts and Jobs Act
Carpenter Technology Corporation (NYSE:CRS) today announced it will
invest $100 million in soft magnetics capabilities and a new,
precision strip hot rolling mill in its Reading, PA facility to
help meet increasing demand for aerospace, consumer electronics and
electric vehicle manufacturing customers.
“Carpenter’s industry leading capabilities in the field of soft
magnetic technology for the Aerospace and Defense end-use market
has created a strong platform for growth over the next several
years. In addition, the value proposition of our CarTech Hiperco®
family of soft magnetic alloys provides customers enhanced
electronic properties and significant design flexibility to improve
performance,” said Tony Thene, Carpenter Technology President and
CEO. “This proven capability and product performance also allows us
to differentiate ourselves in key consumer electronics applications
as well as the rapidly evolving electric vehicle space.”
“Given these significant market opportunities and the benefits
associated with the recently enacted Tax Cuts and Jobs Act, we have
decided to accelerate further investment into our business. With
more than 90 percent of our products manufactured in the U.S., this
type of capital investment will strengthen our foundation for
long-term sustainable growth, provide good-paying jobs and increase
value for shareholders for years to come. Today’s announcement
demonstrates the benefits of an effective partnership between
public policy and U.S business.”
U.S. Senator Pat Toomey (R-PA) joined Carpenter President and
CEO Tony Thene in making today’s announcement.
“This is exactly the type of capital investment we envisioned as
a direct benefit of the Tax Cuts and Jobs Act,” said Senator
Toomey. “It’s vitally important for Pennsylvania families that
local companies increase their operations at home and provide
high-paying jobs with a stable future. I’m pleased Carpenter is
making such a strong commitment to Pennsylvania.”
Carpenter estimates the recent legislation will reduce cash
taxes by approximately $90-$100 million over the next five years
and will use the savings to increase its base level of capital
investment in U.S. manufacturing operations over the same
timeframe. The new mill announced today will increase overall
capacity and offer greater flexibility in processing alloys for
highly specialized soft magnetics applications in the aerospace,
consumer electronics and electric vehicle markets. Soft magnetics
are materials that can be easily magnetized and de-magnetized and
are indispensable in modern electrical engineering and electronics
applications. Sophisticated equipment, special processes, and
highly controlled atmospheric conditions are required to produce
soft magnetic alloys to meet extremely stringent
specifications.
About Carpenter Technology
Carpenter Technology Corporation is a leading producer and
distributor of premium specialty alloys, including titanium alloys,
nickel and cobalt based superalloys, stainless steels, alloy steels
and tool steels. Carpenter’s high-performance materials and
advanced process solutions are an integral part of critical
applications used within the aerospace, transportation, medical and
energy markets, among other markets. Building on its history of
innovation, Carpenter’s powder technology capabilities support a
range of next-generation products and manufacturing techniques,
including additive manufacturing and 3D Printing. Information about
Carpenter can be found at www.cartech.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are based on
management’s current expectations and are subject to risks,
uncertainties and other factors that could cause actual results to
differ from those projected, anticipated or implied. The most
significant of these uncertainties are described in Carpenter's
filings with the Securities and Exchange Commission, including
its annual report on Form 10-K for the year ended June 30,
2017, the quarterly reports on Form 10-Q for the quarters
ended September 30, 2017 and December 31, 2017,
and the exhibits attached to those filings. They
include, but are not limited to, statements regarding expected tax
savings and expectations for improving market demand conditions for
certain products. Carpenter undertakes no obligation to
update or revise any forward-looking statements.
Media Inquiries:William J. Rudolph, Jr.+1
610-208-3892wrudolph@cartech.com
Investor Inquiries:Brad EdwardsThe Plunkett Group+1
212-739-6740brad@theplunkettgroup.com
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