NEW YORK Carpenter
Technology Corp. expects its full-year operating earnings in
the fiscal year ending June 30, 2013, to be 20 to 30 percent
higher than in the previous fiscal year, although the company
identified uncertainty in demand for lower-value mill
products as a challenge.
The projected earnings increase
is being driven "primarily by the acquisition of Latrobe
Specialty Metals Inc. (
amm.com, April 25), which is delivering
higher-than-expected synergies and improved overall pricing/mix
actions," the company said. The earnings target excludes the
anticipated financial impact of selling the Latrobe
The Wyomissing, Pa.-based
stainless steel and titanium alloy producer said it expects net
sales (excluding surcharges) to total $431 million in its
fiscal second quarter ended Dec. 31, up 30 percent from $330.3
million in the same period a year earlier but down from $441
million in its fiscal first quarter ended Sept. 30. It
attributed the anticipated quarter-on-quarter drop to "weaker
Performance Engineered Products (PEP) segment performance,
softer demand for lower-value mill products and the impact of
production balancing within Specialty Alloys Operations."
Carpenter anticipates fiscal
second-quarter operating earnings of 61 to 62 cents per diluted
share, about 20 percent higher than a year earlier.
"We continue to see strong
end-market demand for our premium and ultra-premium products
where we remain capacity-constrained, and (we) are delivering
above-target near-term Latrobe synergies," president and chief
executive officer William A. Wulfsohn said in a statement.
However, "we ... are performing below plan in the PEP business
Carpenter is scheduled to report its fiscal second-quarter
results Jan. 31.