Exhibit 99.1
Carpenter Technology Reports Second Quarter Results
WYOMISSING, Pa.--(BUSINESS WIRE)--Jan. 23, 2004--Carpenter
Technology Corporation (NYSE:CRS) today reported that stronger demand
in key markets, continued improvement in its operating performance and
certain non-operating items had a positive impact on its earnings for
the second fiscal quarter ended December 31, 2003.
Net sales for the recent second quarter were $226.3 million
compared to $210.2 million for the same period a year ago. Last year's
second quarter included $6.4 million from companies that were
subsequently divested.
Net income in the second quarter was $7.5 million or $.31 per
diluted share, compared to a net loss of $7.1 million or $.34 per
diluted share a year ago. This year's second quarter included $4.4
million or $.12 per diluted share of non-cash pension and retiree
medical expenses. The quarter a year ago benefited from net pension
income of $0.8 million or $.02 per diluted share.
In addition to stronger demand in its key markets and an improved
operating performance, Carpenter's recent second quarter net income
included the receipt of $5.2 million, or the equivalent of $.14 per
diluted share, from the "Continued Dumping and Subsidy Offset Act of
2000." Last year in the second quarter, Carpenter received $2.5
million, or the equivalent of $.07 per diluted share, under this
program.
Net income in the recent second quarter also reflected a $2.4
million settlement of an outstanding state tax matter or the
equivalent of $.10 per diluted share.
Partially offsetting these contributions to net income was a
special charge of $2.3 million or $.06 per diluted share associated
with the early repayment of debt in the recent second quarter. Last
year's second quarter included a special charge of $12.9 million or
$.35 per diluted share related primarily to severance and pension
related costs of an early retirement program.
Free cash flow, defined as net cash provided before financing
activities but after dividends and excluding the effects of marketable
securities, was $9.4 million in the second quarter versus $17.2
million a year ago.
Carpenter's total debt, net of cash and marketable securities and
including amounts outstanding under its receivables purchase facility,
was $321.3 million at the end of the recent second quarter. This net
debt level is $12.0 million lower than at the end of the previous
quarter and $79.8 million lower than a year ago.
First Half Results
Net sales for the first six months of the current fiscal year were
$439.6 million, compared with last year's level of $424.1 million. For
the six-month period a year ago, sales included $11.5 million from
companies that were subsequently divested.
Net income for the first six months of the current fiscal year was
$8.0 million or $.32 per diluted share, compared with a net loss of
$18.0 million or $.85 per diluted share for the same period a year
ago.
Through the first six months of the current fiscal year, Carpenter
had other income of $7.8 million. Other income primarily reflected the
receipt of funds under the "Continued Dumping and Subsidy Offset Act
of 2000" and payment from a litigation matter. In the same period a
year ago, the company had other income of $3.3 million primarily as a
result of the receipt of funds under this program.
Also, Carpenter had a special charge of $2.3 million or $.06 per
diluted share in the first six month period of this fiscal year. For
the same period a year ago, the company had special charges of $27.0
million or $.73 per diluted share associated with cost reduction
initiatives.
For the first six-months of this fiscal year, the company
generated $31.6 million of free cash flow versus $25.9 million for the
same period a year ago.
Second Quarter - Operating Summary
"We are encouraged by the continued progress in our cost reduction
and productivity efforts, which contributed to a significant
improvement in our operating performance from a year ago, despite
major increases in the cost of raw materials," said Robert J.
Torcolini, chairman, president and chief executive officer. "Our
performance further benefited from increased demand in several key
markets."
Stronger demand from certain key end-use markets including power
generation, automotive and medical, continued in the second quarter.
Additionally, demand for product sold to the aerospace market showed a
modest increase versus a year ago.
Carpenter's gross profit in the second quarter improved to $39.9
million or 17.6 percent of sales from $35.9 million or 17.1 percent of
sales a year ago. The gross profit in the recent second quarter
included non-cash pension and retiree medical expenses of $3.1 million
or 1.4 percent of sales. In the second quarter a year ago, the gross
profit reflected pension income of $1.1 million or 0.5 percent of
sales.
The improvement in gross profit reflects a better product mix due
to stronger demand from key markets, in addition to reduced labor
costs from lower employment levels, realized operating efficiencies
and better yields. These improvements were partially offset by
significantly higher raw material costs.
Selling and administrative expenses decreased to $29.3 million or
12.9 percent of sales in the recent second quarter from $30.5 million
or 14.5 percent of sales a year ago. The decrease occurred despite an
increase of $1.0 million in non-cash pension and retiree medical
expenses from a year ago.
As a result of the improvement in gross profit and lower selling
and administrative expenses, Carpenter's second quarter income before
other income and expense (net sales less cost of sales and selling and
administrative expenses) increased to $10.6 million or 4.7 percent of
sales from $5.4 million or 2.6 percent of sales a year ago. The
increase occurred despite the change in the non-cash pension and
retiree medical expense to $4.4 million from non-cash income of $0.8
million in the second quarter a year ago.
Outlook
"We continue to aggressively focus on cost reduction initiatives
and pricing actions to ensure that we restore acceptable levels of
profitability," Torcolini said. "While it is premature to indicate
that a recovery is beginning in our key markets, we do believe that
these markets have stabilized.
"We are encouraged by the cost reductions and operating
improvements made during the past several quarters and believe that
there is substantial opportunity for further improvement in our
operating performance despite significant increases in raw material
and energy costs."
Based on current market conditions and excluding the non-cash
pension and retiree medical expenses, Carpenter confirmed its
expectation of improved year-over-year operating comparisons for the
balance of fiscal 2004.
Additionally, Carpenter now expects that its free cash flow will
be in excess of $60 million for the current fiscal year. Carpenter had
previously expected its free cash flow to be in excess of $50 million.
Segment Results - Second Quarter
Specialty Metals
Net sales for the quarter ended December 31, 2003 for the
Specialty Metals segment, which includes the Specialty Alloys
Operations (SAO), Dynamet, and Carpenter Powder Products (CPP)
business units, were $197.9 million or $19.0 million higher than in
the same quarter a year ago.
SAO sales increased 10.8 percent from the same quarter a year ago
due primarily to a better product mix, caused by increased sales of
higher value special alloys and stainless steel to the aerospace,
power generation and automotive markets. Also contributing to the
sales increase were selling price increases due to higher raw material
costs. SAO volume declined 6.5 percent due to reduced demand from
certain consumer and industrial segments and an intentional reduction
of marginally profitable products.
Dynamet's sales increased 15.4 percent in the second quarter
versus a year ago, largely related to increased volumes to the medical
market. CPP's sales were 8.1 percent higher than a year ago.
Income for the Specialty Metals segment was $15.0 million, which
was $10.2 million higher than last year.
The increase in income reflects an improved product mix, lower
labor costs from reduced employment levels, better yields, realized
operating efficiencies and lower selling and administrative expenses.
This operating performance was partially offset by substantially
higher raw material costs.
Engineered Products Segment
Net sales for this segment, which includes sales of fabricated
metal and ceramic components, were $28.9 million, as compared to $31.6
million a year ago. Last year's second quarter included $6.4 million
in sales from businesses that were subsequently divested. Sales in
this segment were driven by increased demand by the aerospace, power
generation, automotive and medical markets.
Income for the Engineered Products segment was $4.4 million in the
second quarter or flat with a year ago. Income in the quarter a year
ago included $0.6 million from companies that were subsequently
divested.
Segment Results - Year-to-Date
Specialty Metals
Net sales for the first six months of fiscal 2004 for the
Specialty Metals segment were $387.6 million, compared to $364.9
million for the same period a year ago.
SAO sales increased 5.9 percent from a year ago, due to stronger
demand from several key markets including aerospace, power generation
and automotive. SAO volume was 8.2 percent lower than last year, due
to reduced demand from certain consumer and industrial segments and an
intentional reduction of marginally profitable products.
Dynamet's sales increased 11.2 percent during the first six months
versus the same period a year ago. The increase is due primarily to
higher volumes sold to the medical and high performance motorsport
markets. CPP's sales were 8.1 percent higher than a year ago.
Income for the Specialty Metals segment was $26.3 million during
the first six months of fiscal 2004 or $18.6 million higher than the
same period a year ago. The increase reflects an improved product mix,
lower labor costs from reduced employment levels, better yields,
realized operating efficiencies and lower selling and administrative
expenses.
Engineered Products Segment
Net sales for this segment through the first six months of fiscal
2004 were $53.0 million as compared to $60.1 million for the same
period a year ago. The period a year ago included $11.5 million from
businesses that were subsequently divested. This group of companies
benefited from stronger demand from the aerospace, power generation,
automotive and medical markets.
Income for the Engineered Products segment for the first six
months of fiscal 2004 was $6.9 million versus $6.6 million for the
same period a year ago. Income in the period a year ago included $0.8
million from companies that were subsequently divested. The increase
in income was primarily associated with stronger demand from key
markets and cost savings initiatives.
Net Pension Credit
In the second quarter of fiscal 2004, Carpenter had non-cash
pension and retiree medical expenses of $4.4 million or $.12 per
diluted share. This compares to net pension income of $0.8 million or
$.02 per diluted share for the same quarter a year ago. The net
pension amount is actuarially determined as of each June 30 and
typically held constant throughout the fiscal year.
For the first six months of the current fiscal year, non-cash
pension and retiree medical expenses were $8.8 million or $.24 per
diluted share. For the first six months a year ago, Carpenter had net
pension income of $1.9 million or $.05 per diluted share.
The pension expense is a non-cash item, as the company's defined
benefit pension plan remains well funded and, as in prior years, the
company is not required to make a cash contribution to the plan.
Special Charges
In the second quarter of fiscal 2004, Carpenter incurred a special
charge of $2.3 million or $.06 per diluted share. The charge was
incurred as a result of a $20 million open market purchase of medium
term notes previously issued by the company and the unwinding of
interest rate swaps associated with the partial repayment of foreign
currency loans.
In the second quarter a year ago, Carpenter incurred a special
charge of $12.9 million or $.35 per diluted share. The charge was
related to costs from the early retirement of certain production and
maintenance employees.
In the first quarter a year ago, Carpenter incurred a special
charge of $14.2 million or $.38 per diluted share for the costs of
eliminating salaried positions and for losses on asset disposals.
Other Items
In the second quarter of fiscal 2004, selling and administrative
expenses of $29.3 million were 12.9 percent of sales versus $30.5
million or 14.5 percent of sales in the quarter a year ago. Selling
and administrative expenses included non-cash pension and retiree
medical expenses of $1.3 million in the current second quarter versus
$0.3 million in the quarter a year ago.
For the first six months of fiscal 2004, selling and
administrative expenses of $58.0 million were 13.2 percent of sales
compared to $62.2 million or 14.7 percent of sales in the same period
a year ago. For the first six months of the current fiscal year,
non-cash pension and retiree medical expenses included in selling and
administrative expenses were $2.6 million versus $0.5 million a year
ago.
The favorable impacts of lower salary and benefits, depreciation
and amortization, and professional fees were the primary reasons for
the decline.
For the most recent second quarter, interest expense of $6.2
million was $1.6 million less than last year due to reduced debt
levels and lower interest rates.
For the first six months of fiscal 2004, interest expense was
$12.5 million or $3.3 million lower than the same period a year ago.
Cash Flow and Liquidity
Carpenter has maintained the ability to provide cash to meet its
needs through cash flow from operations, management of working capital
and the flexibility to use outside sources of financing to supplement
internally generated funds.
Free cash flow for the second quarter was $9.4 million as compared
to $17.2 million a year ago. For the six-month period ended December
31, 2003, free cash flow was $31.6 million as compared to $25.9
million for the same period a year ago.
Carpenter believes that its current financial resources, both from
internal and external sources, will be more than adequate to meet its
foreseeable needs. At the end of the second quarter, Carpenter had
approximately $170 million available under its credit facilities.
Conference Call
Carpenter will host a conference call and webcast on Friday,
January 23, at 10 a.m., Eastern Time, to discuss the results of
operations for the second quarter.
Please call 610-208-2800 for details on the conference call. The
call will also be made available through www.vcall.com.
Carpenter produces and distributes specialty materials, including
stainless steels, titanium alloys, superalloys and various engineered
products. Information about Carpenter can be found on the Internet at
www.cartech.com, with selected products sold online at
www.carpenterdirect.com.
Except for historical information, all other information in this
news release consists of 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's filings with the Securities and Exchange Commission
including its annual report on Form 10-K for the year ended June 30,
2003, its Form 10-Q for the first quarter and its most recent
registration statement on Form S-4, filed on September 16, 2003, as
amended on October 3, 2003. They include but are not limited to: 1)
the cyclical nature of the specialty materials business and certain
end-use markets, including aerospace, power generation, automotive,
industrial and consumer, all of which are subject to changes in
general economic and financial market conditions; 2) the ability of
Carpenter to ensure adequate supplies of raw materials and to recoup
increased costs of electricity, natural gas, and raw materials, such
as nickel, through increased prices and surcharges; 3) domestic and
foreign excess manufacturing capacity for certain metals that
Carpenter produces; 4) fluctuations in currency exchange rates,
resulting in increased competition and downward pricing pressure on
certain Carpenter products; 5) the degree of success of government
trade actions; 6) fluctuations in capital markets that could impact
the valuation of the assets and liabilities in Carpenter's pension
trusts and the accounting for pension plans; 7) the potential cost
advantages that new competitors or competitors who have reorganized
through bankruptcy may have; 8) the transfer of manufacturing capacity
from the United States to foreign countries; 9) the consolidation of
customers and suppliers. Any of these factors could have an adverse
and/or fluctuating effect on Carpenter's results of operations; and
10) the potential that our customers may substitute alternate
materials or adopt different manufacturing practices that replace or
limit the suitability of our products. 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, and Section 21E of the Securities Exchange Act of 1934, as
amended. Carpenter undertakes no obligation to update or revise any
forward-looking statements.
CONSOLIDATED STATEMENT OF INCOME
(in Millions, Except per Share Data)
Three Months Ended Six Months Ended
December 31 December 31
----------------- -----------------
2003 2002 2003 2002
-------- -------- -------- --------
NET SALES $226.3 $210.2 $439.6 $424.1
Cost of sales 186.4 174.3 365.7 354.6
-------- -------- -------- --------
Gross profit 39.9 35.9 73.9 69.5
Selling and administrative expenses 29.3 30.5 58.0 62.2
Special charge 2.3 12.9 2.3 27.0
Interest expense 6.2 7.8 12.5 15.8
Other income, net (6.1) (3.1) (7.8) (3.3)
-------- -------- -------- --------
Income (loss) before income taxes 8.2 (12.2) 8.9 (32.2)
Income tax expense (benefit) 0.7 (5.1) 0.9 (14.2)
-------- -------- -------- --------
NET INCOME (LOSS) $7.5 ($7.1) $8.0 ($18.0)
======== ======== ======== ========
EARNINGS (LOSS) PER COMMON SHARE:
Basic $0.32 ($0.34) $0.32 ($0.85)
======== ======== ======== ========
Diluted $0.31 ($0.34) $0.32 ($0.85)
======== ======== ======== ========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
Basic 22.4 22.3 22.4 22.3
======== ======== ======== ========
Diluted 23.3 22.3 23.3 22.3
======== ======== ======== ========
Cash dividends per common share $0.0825 $0.0825 $0.1650 $0.4125
======== ======== ======== ========
Certain reclassifications of prior year's amounts have been made to
conform with current year's presentation.
PRELIMINARY
CONSOLIDATED STATEMENT OF CASH FLOWS
(in Millions)
Six Months Ended
December 31
-----------------
2003 2002
-------- --------
OPERATIONS:
Net income (loss) $8.0 ($18.0)
Adjustments to reconcile net income (loss) to
net cash provided from operations:
Depreciation 24.8 27.3
Amortization 4.8 4.6
Deferred income taxes (2.6) (6.7)
Net pension expense (income) 8.8 (1.9)
Net loss on asset disposals 0.2 0.6
Special charge -- 25.6
Changes in working capital and other:
Receivables (5.9) 25.5
Inventories (10.7) (2.4)
Other current assets (1.4) (5.4)
Accounts payable 3.1 (9.2)
Accrued current liabilities 3.1 (4.3)
Income tax refund 0.3 11.2
Other, net 6.2 (6.4)
-------- --------
Net cash provided from operations 38.7 40.5
-------- --------
INVESTING ACTIVITIES:
Purchases of plant, equipment and software (3.2) (5.3)
Proceeds from disposals of plant and equipment 0.6 0.7
Purchases of marketable securities (18.7) --
-------- --------
Net cash used for investing activities (21.3) (4.6)
-------- --------
FINANCING ACTIVITIES:
Net change in short-term debt (9.3) (1.7)
Payments on long-term debt (20.1) (1.1)
Checks not cleared (3.7) --
Dividends paid (4.5) (10.0)
Proceeds from issuance of common stock 1.2 --
-------- --------
Net cash used for financing activities (36.4) (12.8)
-------- --------
Effect of exchange rate changes on cash and cash
equivalents (0.2) 0.6
-------- --------
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (19.2) 23.7
Cash and cash equivalents at beginning of period 53.5 18.7
-------- --------
Cash and cash equivalents at end of period $34.3 $42.4
======== ========
Certain reclassifications of prior year's amounts have been made to
conform with current year's presentation.
PRELIMINARY
CONSOLIDATED BALANCE SHEET
(in Millions)
December 31 June 30
2003 2003
---------- ----------
ASSETS
Current Assets:
Cash and cash equivalents $34.3 $53.5
Marketable securities 18.7 --
Accounts receivable, net 120.9 113.8
Inventories 191.8 180.9
Other current assets 40.8 21.1
---------- ----------
Total current assets 406.5 369.3
Property, plant and equipment, net 629.1 651.7
Prepaid pension cost 250.3 253.7
Goodwill 46.3 46.3
Trademarks and trade names, net 24.8 25.4
Other assets 47.9 53.5
---------- ----------
Total assets $1,404.9 $1,399.9
========== ==========
LIABILITIES
Current liabilities:
Short-term debt $8.6 $17.1
Accounts payable 67.7 68.2
Accrued compensation 16.6 13.5
Accrued income taxes 8.9 6.1
Accrued liabilities 38.9 40.6
Deferred income taxes 14.0 4.3
Current portion of long-term debt 0.1 0.1
---------- ----------
Total current liabilities 154.8 149.9
Long-term debt, net of current portion 355.6 378.9
Accrued postretirement benefits 187.1 182.4
Deferred income taxes 165.1 166.7
Other liabilities 39.7 47.4
---------- ----------
Total liabilities 902.3 925.3
---------- ----------
STOCKHOLDERS' EQUITY
Convertible preferred stock 19.6 10.2
Common stock 117.6 117.3
Capital in excess of par value - common stock 200.7 199.8
Reinvested earnings 207.2 203.7
Common stock in treasury, at cost (37.7) (38.3)
Deferred compensation (6.7) (3.8)
Accumulated other comprehensive income (loss) 1.9 (14.3)
---------- ----------
Total stockholders' equity 502.6 474.6
---------- ----------
Total liabilities and stockholders' equity $1,404.9 $1,399.9
========== ==========
PRELIMINARY
SEGMENT FINANCIAL DATA
(in Millions)
Three Months Ended Six Months Ended
December 31 December 31
----------------- -----------------
2003 2002 2003 2002
-------- -------- -------- --------
Net sales:
Specialty Metals $197.9 $178.9 $387.6 $364.9
Engineered Products 28.9 31.6 53.0 60.1
Intersegment (0.5) (0.3) (1.0) (0.9)
-------- -------- -------- --------
Consolidated net sales $226.3 $210.2 $439.6 $424.1
======== ======== ======== ========
Operating results:
Specialty Metals $15.0 $4.8 $26.3 $7.7
Engineered Products 4.4 4.4 6.9 6.6
Net pension (expense) income (4.4) 0.8 (8.8) 1.9
Corporate costs (4.4) (4.6) (8.5) (8.9)
Special charge (2.3) (12.9) (2.3) (27.0)
Interest expense (6.2) (7.8) (12.5) (15.8)
Other income, net 6.1 3.1 7.8 3.3
-------- -------- -------- --------
Consolidated income (loss)
before income taxes $8.2 ($12.2) $8.9 ($32.2)
======== ======== ======== ========
Carpenter is organized in the following business units: Specialty
Alloys Operations, Dynamet, Carpenter Powder Products and Engineered
Products. For segment reporting, the Specialty Alloys Operations,
Dynamet and Carpenter Powder Products operating segments have been
aggregated into one reportable segment, Specialty Metals, because of
the similarities in products, processes, customers, distribution
methods and economic characteristics.
Certain reclassifications of prior year's amounts have been made to
conform with current year's presentation.
PRELIMINARY
SELECTED FINANCIAL MEASURES
(in Millions)
Three Months Ended Six Months Ended
December 31 December 31
----------------- -----------------
FREE CASH FLOW 2003 2002 2003 2002
-------- -------- -------- --------
Net cash provided from operations $12.6 $21.1 $38.7 $40.5
Purchases of plant, equipment and
software (1.6) (2.2) (3.2) (5.3)
Proceeds from disposals of plant
and equipment 0.5 0.5 0.6 0.7
Dividends paid (2.1) (2.2) (4.5) (10.0)
-------- -------- -------- --------
Free cash flow $9.4 $17.2 $31.6 $25.9
======== ======== ======== ========
Free cash flow is a measure of cash generated which management
evaluates for alternative uses and has chosen to apply to debt
repayment.
December 31 September 30 December 31
NET DEBT 2003 2003 2002
------------ ------------ ------------
Accounts receivable purchase
facility $10.0 $10.0 $10.0
Short-term debt 8.6 17.0 15.9
Current portion of long-term
debt 0.1 0.1 50.1
Long-term debt, net of current
portion 355.6 378.6 367.5
------------ ------------ ------------
Total Debt 374.3 405.7 443.5
Cash (34.3) (72.4) (42.4)
Marketable securities (18.7) -- --
------------ ------------ ------------
Net Debt $321.3 $333.3 $401.1
============ ============ ============
Accumulated cash and marketable securities are expected to be used for
debt repayment until a targeted debt to capital ratio is achieved.
Three Months Ended Six Months Ended
December 31 December 31
NET SALES ADJUSTED FOR ----------------- -----------------
DIVESTED COMPANIES 2003 2002 2003 2002
-------- -------- -------- --------
Net sales $226.3 $210.2 $439.6 $424.1
Divested companies -- (6.4) -- (11.5)
-------- -------- -------- --------
Net sales adjusted for divested
companies $226.3 $203.8 $439.6 $412.6
======== ======== ======== ========
PRELIMINARY
SELECTED FINANCIAL MEASURES
(in Millions, Except per Share Data)
Three Months Ended Six Months Ended
December 31 December 31
----------------- -----------------
NET PENSION EXPENSE (INCOME) 2003 2002 2003 2002
-------- -------- -------- --------
Pension plan expense (income) $2.2 ($4.1) $4.4 ($8.2)
Other postretirement benefit
expense 2.2 3.3 4.4 6.3
-------- -------- -------- --------
4.4 (0.8) 8.8 (1.9)
Income tax (benefit) expense (1.7) 0.3 (3.3) 0.8
-------- -------- -------- --------
Net pension expense (income) $2.7 ($0.5) $5.5 ($1.1)
======== ======== ======== ========
Pension expense (income) per share $0.12 ($0.02) $0.24 ($0.05)
======== ======== ======== ========
Weighted average diluted common
shares 23.3 22.3 23.3 22.3
======== ======== ======== ========
Three Months Ended Six Months Ended
December 31 December 31
----------------- -----------------
SPECIAL CHARGE 2003 2002 2003 2002
-------- -------- -------- --------
Premium on early retirement of
debt $2.3 $-- $2.3 $--
Reductions in workforce -- 6.2 -- 17.4
Pension plan curtailment loss -- 6.7 -- 6.7
Writedown of certain assets -- -- -- 2.9
-------- -------- -------- --------
Special charge 2.3 12.9 2.3 27.0
Income tax benefit (0.8) (5.2) (0.8) (10.8)
-------- -------- -------- --------
Special charge, net of income
taxes $1.5 $7.7 $1.5 $16.2
======== ======== ======== ========
Special charge per share $0.06 $0.35 $0.06 $0.73
======== ======== ======== ========
Weighted average diluted common
shares 23.3 22.3 23.3 22.3
======== ======== ======== ========
Three Months Ended Six Months Ended
December 31 December 31
----------------- -----------------
INCOME BEFORE OTHER INCOME 2003 2002 2003 2002
AND EXPENSE -------- -------- -------- --------
Net sales $226.3 $210.2 $439.6 $424.1
Cost of sales (186.4) (174.3) (365.7) (354.6)
Selling and administrative
expenses (29.3) (30.5) (58.0) (62.2)
-------- -------- -------- --------
Income before other income and
expense $10.6 $5.4 $15.9 $7.3
======== ======== ======== ========
CONTACT: Carpenter Technology Corporation
Investors:
Jaime Vasquez, 610-208-2165
jvasquez@cartech.com
or
Media:
Katharine B. Marshall, 610-208-3034
kmarshall@cartech.com