Carpenter Technology Reaffrims FY23 Outlook and Provides Impact of Hurricane Ian
October 13 2022 - 8:00AM
Carpenter Technology Corporation (NYSE: CRS) (the “Company”) today
reaffirmed its outlook for fiscal year 2023 results and provided an
update on the impact of Hurricane Ian on its first quarter of
fiscal year 2023 results.
“Our outlook to deliver operating income at fiscal year 2019
levels by the fourth quarter of fiscal year 2023 remains
unchanged,” said Tony R. Thene, President and CEO. “We remain
confident as we continue to see strength across all of our end-use
markets with order entry activity driving backlog growth.”
“We ended our recent first quarter with performance largely
in-line with our expectations. Our SAO segment performed at the
upper end of our prior guidance, driven by the aerospace ramp and
continued improvement in our operations. The PEP segment came in
just below expectations due to delayed shipments caused by
Hurricane Ian at our Dynamet facility in Florida. We are thankful
that the extent of the impact of the hurricane was limited and that
our facilities and employees are safely back in operation,” Mr.
Thene continued.
For the Specialty Alloy Operations (SAO) segment, operating
income is expected to be between $19.5 million and $20.0 million
for the first quarter of fiscal year 2023, at the upper end of the
prior guidance of between $18.0 million and $20.0 million. The
Performance Engineered Products (PEP) segment operating income is
expected to be between $6.0 million and $6.5 million, compared to
the prior guidance of between $7.0 million and $9.0 million. The
slightly lower than anticipated operating income in the PEP segment
was primarily the result of delayed shipments at the end of the
quarter due to required evacuation orders related to Hurricane Ian
at the Company’s Dynamet facility in Florida.
Corporate costs and intersegment eliminations are expected to be
approximately $18.0 million for the first quarter of fiscal year
2023, in line with the prior guidance of between $18.0 million and
$20.0 million. As a result, operating income for the first quarter
of fiscal year 2023 is expected to be approximately $7.5 to $8.5
million, which is largely in line with the sum of prior guidance
given for the individual components of operating income.
In addition, the financial results for the first quarter of
fiscal year 2023 are expected to include:
- Nonoperating pension expense of $2.5 million as well as $1.0
million of other expenses;
- Interest expense of $12.6 million, in line with the FY23 annual
guidance of $51 million;
- Effective income tax rate of 12-13%.
Based on the considerations above, the Company currently expects
earnings per share (EPS) for the first quarter of fiscal year 2023
to be in the range of ($0.16) to ($0.14), which is within the range
of previous guidance when considering the various components that
were provided. These are preliminary estimates subject to
finalization and may be subject to change. Additional information
and final financial results for the first quarter of fiscal year
2023 will be provided on the Company’s earnings call on October 27,
2022.
Conference Call and Webcast Details What:
Carpenter Technology First Quarter Fiscal 2023 Conference Call
Date: Thursday, October 27, 2022 Time: 10:00 a.m. Eastern Time Live
Call: +1 412-317-9259 Live and Archived Webcast:
ir.carpentertechnology.com
About Carpenter Technology
Carpenter Technology Corporation is a recognized
leader in high-performance specialty alloy-based materials and
process solutions for critical applications in the aerospace,
defense, transportation, energy, industrial, medical, and consumer
electronics markets. Founded in 1889, Carpenter Technology has
evolved to become a pioneer in premium specialty alloys, including
titanium, nickel, and cobalt, as well as alloys specifically
engineered for additive manufacturing (AM) processes and soft
magnetics applications. Carpenter Technology has expanded its AM
capabilities to provide a complete “end-to-end” solution to
accelerate materials innovation and streamline parts production.
More information about Carpenter Technology can be found at
www.carpentertechnology.com.
Forward-Looking Statements
This presentation contains forward-looking statements within the
meaning of the Private Securities Litigation Act of 1995. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ from those projected,
anticipated or implied. The most significant of these uncertainties
are described in Carpenter Technology’s filings with the Securities
and Exchange Commission, including its report on Form 10-K for the
year ended June 30, 2022, and the exhibits attached to that filing.
They include but are not limited to:(1) the cyclical nature of the
specialty materials business and certain end-use markets, including
aerospace, defense, medical, transportation, energy, industrial and
consumer, or other influences on Carpenter Technology's business
such as new competitors, the consolidation of competitors,
customers, and suppliers or the transfer of manufacturing capacity
from the United States to foreign countries; (2) the ability of
Carpenter Technology to achieve cash generation, growth, earnings,
profitability, operating income, cost savings and reductions,
qualifications, productivity improvements or process changes; (3)
the ability to recoup increases in the cost of energy, raw
materials, freight or other factors; (4) domestic and foreign
excess manufacturing capacity for certain metals; (5) fluctuations
in currency exchange rates; (6) the effect of government trade
actions; (7) the valuation of the assets and liabilities in
Carpenter Technology's pension trusts and the accounting for
pension plans; (8) possible labor disputes or work stoppages; (9)
the potential that our customers may substitute alternate materials
or adopt different manufacturing practices that replace or limit
the suitability of our products; (10) the ability to successfully
acquire and integrate acquisitions; (11) the availability of credit
facilities to Carpenter Technology, its customers or other members
of the supply chain; (12) the ability to obtain energy or raw
materials, especially from suppliers located in countries that may
be subject to unstable political or economic conditions; (13)
Carpenter Technology's manufacturing processes are dependent upon
highly specialized equipment located primarily in facilities in
Reading and Latrobe, Pennsylvania and Athens, Alabama for which
there may be limited alternatives if there are significant
equipment failures or a catastrophic event; (14) the ability to
hire and retain key personnel, including members of the executive
management team, management, metallurgists and other skilled
personnel; (15) fluctuations in oil and gas prices and production;
(16) uncertainty regarding the return to service of the Boeing 737
MAX aircraft and the related supply chain disruption; (17)
potential impacts of the COVID-19 pandemic on our operations,
financial results and financial position; (18) our efforts and
efforts by governmental authorities to mitigate the COVID-19
pandemic, such as travel bans, shelter in place orders and business
closures, and the related impact on resource allocations and
manufacturing and supply chains; (19) our ability to execute our
business continuity, operational, budget and fiscal plans in light
of the COVID-19 pandemic; and (20) our ability to successfully
carry out restructuring and business exit activities on the
expected terms and timelines. Any of these factors could have an
adverse and/or fluctuating effect on Carpenter Technology's results
of operations. The forward-looking statements in this document are
intended to be subject to the safe harbor protection provided by
Section 27A of the Securities Act of 1933, as amended (the
"Securities Act"), and Section 21E of the Securities Exchange Act
of 1934, as amended. Carpenter Technology undertakes no obligation
to update or revise any forward-looking statements.
Media
Inquiries: |
Investor
Inquiries: |
Heather Beardsley |
The Plunkett Group |
+1 610-208-2278 |
Brad Edwards |
hbeardsley@cartech.com |
+1 914-582-4187 |
|
brad@theplunkettgroup.com |
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