PHILADELPHIA, PA — Carpenter Technology Corporation (NYSE: CRS) has announced financial results for the fiscal second quarter ended December 31, 2022. For the quarter, the Company reported net income of $6.2 million, or $0.13 earnings per diluted share.
“The second quarter of fiscal year 2023 was a meaningful step on our path back to pre-pandemic levels and further long-term growth,” said Tony R. Thene, President and CEO of Carpenter Technology. “Our return to profitability was driven by ongoing strong demand in each of our end-use markets, as evidenced by the continued growth of our backlog, and increased throughput across our manufacturing facilities.”
“The Specialty Alloys Operations (‘SAO’) segment demonstrated continued improvement with operating income of $30.3 million for the second quarter of fiscal year 2023. The results for SAO were driven by the ongoing aerospace ramp and our focus on increasing our productivity and throughput. The Performance Engineered Products (‘PEP’) segment had another strong quarter with operating income of $9.3 million, led by our Dynamet Titanium and Additive businesses.”
“Looking ahead, we remain confident in our growth trajectory. We continue to see strong demand across each of our end-use markets and are focused on driving operational improvements. As a result, we expect to realize accelerating sales momentum and improved margins.”
| Q2 | Q2 | Q1 | ||||||||||
| ($ in millions except per share amounts) | FY2023 | FY2022 | FY2023 | |||||||||
| Net sales | $ | 579.1 | $ | 396.0 | $ | 522.9 | ||||||
| Net sales excluding surcharge (a) | $ | 420.8 | $ | 314.9 | $ | 375.7 | ||||||
| Operating income (loss) | $ | 22.6 | $ | (31.5 | ) | $ | 8.3 | |||||
| Adjusted operating income (loss) excluding special item (a) | $ | 22.6 | $ | (29.8 | ) | $ | 8.3 | |||||
| Net income (loss) | $ | 6.2 | $ | (29.4 | ) | $ | (6.9 | ) | ||||
| Earnings (loss) per share | $ | 0.13 | $ | (0.61 | ) | $ | (0.14 | ) | ||||
| Adjusted earnings (loss) per share (a) | $ | 0.13 | $ | (0.58 | ) | $ | (0.14 | ) | ||||
| Net cash used for operating activities | $ | (86.4 | ) | $ | (89.2 | ) | $ | (78.0 | ) | |||
| Free cash flow (a) | $ | (113.7 | ) | $ | (116.3 | ) | $ | (101.3 | ) | |||
| (a) Non-GAAP financial measures explained on company website | ||||||||||||
Operating income was $22.6 million compared to operating loss of $31.5 million in the prior year period. Earnings per share in the second quarter of fiscal year 2023 was $0.13 compared to loss of $0.61 per share in the prior year quarter. Excluding the special item, adjusted earnings per share in the second quarter of fiscal year 2022 was loss of $0.58. The improvement in operating income and earnings per share is primarily the result of increased shipments as activity levels continued to ramp to meet improving market conditions in key end-use markets compared to the prior year period.
Cash used for operating activities in the second quarter of fiscal year 2023 was $86.4 million compared to $89.2 million in the same quarter last year. Free cash flow in the second quarter of fiscal year 2023 was negative $113.7 million, compared to negative $116.3 million in the same quarter last year. The operating cash flow and free cash flow performance in the second quarter of fiscal year 2023 reflects improved earnings offset by higher cash used for inventory to meet growing demand. Capital expenditures in the second quarter of fiscal year 2023 were $17.5 million, compared to $19.1 million in the same quarter last year.
Total liquidity, including cash and available revolver balance, was $237.0 million at the end of the second quarter of fiscal year 2023. This consisted of $20.0 million of cash and $217.0 million of available borrowing under the Company’s credit facility.
More information about Carpenter Technology can be found at www.carpentertechnology.com.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News.
Thanks for visiting! Looking for some Chester County pride? We got you covered! Shop our MyChesCo store and show your love for Chester County, Pennsylvania. We got shirts, hats, and more – all with a unique ChesCo flair. Plus, proceeds from each purchase helps support our mission of bringing reliable information and resources to the people of Chester County.