Exhibit 99.1
Carpenter Technology Reports Fourth Quarter and 2007 Fiscal Year Results
-- Record fourth quarter operating income of $92 million
-- Net income of $61 million or $2.33 per share
-- Results include pre-tax LIFO inventory valuation expense of
$79 million and higher effective tax rate
-- Free cash flow of $202 million generated in fiscal year 2007
WYOMISSING, Pa.--(BUSINESS WIRE)--July 26, 2007--Carpenter
Technology Corporation (NYSE:CRS) today reported record fourth quarter
operating income despite a rapid rise in nickel prices which reached a
record high during the quarter. Net income of $61.3 million or $2.33
per diluted share reflected an effective tax rate of 34.2 percent as
compared to 25.6 percent in the fourth quarter a year ago.
The fourth quarter results also reflected LIFO expense of $79.3
million due primarily to escalating nickel prices and higher year-end
inventory levels. This expense is mostly offset through the Company's
surcharge mechanism. In the fourth quarter a year ago, the Company had
LIFO expense of $19.8 million.
For fiscal 2007, Carpenter generated record sales and net income.
Sales growth, excluding surcharge, was driven primarily by the
Company's increased focus on the energy market and strong demand from
the industrial market.
Record fiscal year net income was achieved primarily as a result
of the Company's continued focus on operational excellence. Financial
highlights from the fourth quarter and fiscal year included:
(millions except e.p.s.) Q4-2007 Q4-2006 FY-2007 FY-2006
- ------------------------------- ========= ========= ======== =========
Sales $560.5 $450.5 $1,944.8 $1,568.2
- ------------------------------- --------- --------- -------- ---------
Operating Income $92.4 $90.9 $323.8 $310.7
- ------------------------------- --------- --------- -------- ---------
Net Income $61.3 $68.0 $227.2 $211.8
- ------------------------------- --------- --------- -------- ---------
Diluted E.P.S. $2.33 $2.58 $8.63 $8.08
- ------------------------------- --------- --------- -------- ---------
Free Cash Flow $101.1 $106.9 $202.3 $202.8
- ------------------------------- --------- --------- -------- ---------
Pounds Sold (millions)* 55,994 61,416 223,246 221,329
- ------------------------------- --------- --------- -------- ---------
* includes specialty and titanium alloys, stainless steel, and powder
materials
Fourth Quarter - Operating Summary
"Our fourth quarter and fiscal year results are particularly
pleasing given the challenges from record high nickel prices
throughout most of the year and temporary inventory adjustments in
some of our key end-use markets," said Anne Stevens, chairman,
president and chief executive officer. "Carpenter's strong financial
performance reflected the underlying leverage of its business
operating model and solid manufacturing execution.
"We continued to experience sales momentum in the oil and gas
sector during the fourth quarter as we gained increasing customer
acceptance for our products and supporting technical expertise.
Additionally, there was a significant step-up in demand for material
sold into the power generation market. Although shipments of our
premium products remained solid in the quarter, lower shipments of
non-premium products resulted in a reduction in pounds shipped from a
year ago.
"Our record results for fiscal 2007 are a strong reflection of our
product portfolio strength and the dedicated efforts of our employees
to continually work towards operational excellence and focus on
satisfying the unique needs of our customers."
Fourth Quarter Overview
For the fourth quarter, Carpenter's sales were 24 percent more
than a year ago. Adjusted for surcharges, sales were flat with a year
ago. Pricing actions and a better mix were mostly offset by a 9
percent decline in pounds shipped from a year ago.
Sales to the energy market, which includes oil and gas and power
generation, increased 122 percent from a year ago to $77 million.
Within the energy market, sales to the oil and gas sector, excluding
surcharge revenue, increased approximately 100 percent from a year ago
to $29 million. The Company continued to find strong acceptance for
its high strength and corrosion resistant materials. Additionally,
growth with key customers and the successful introduction of new
Carpenter products into the oil and gas sector helped drive the sales
increase.
Also within the energy market, sales to the power generation
sector surged 78 percent to $27 million, excluding surcharge, due to
increased demand for industrial gas turbines, particularly from the
Middle East. The increase in demand had a favorable impact for the
Company's ceramic and nickel based alloy materials.
Sales to the industrial market improved by 60 percent to a record
$127 million. Adjusted for surcharge revenue, sales increased
approximately 33 percent from the fourth quarter a year ago. The
growth was driven by increased shipments of higher value materials
used in capital equipment and in the manufacture of valves and
fittings used in applications such as the construction and maintenance
of chemical and food processing facilities. Also, increased shipments
to the semiconductor sector contributed to the sales gain.
Consumer market sales increased 33 percent from the fourth quarter
a year ago to $62 million. Adjusted for surcharge revenue, sales
decreased 3 percent. Reduced sales of materials used in consumer
electronics and sporting goods were the primary contributors to the
decline.
Automotive and truck market sales grew 24 percent from the fourth
quarter a year ago to $65 million. Sales, excluding surcharge revenue,
decreased 8 percent from a year ago. The year-over-year decline
primarily reflected supply chain adjustments due to lower production
rates in North America and Europe. Additionally, the Company elected
not to participate in certain marginally profitable business.
Sales to the aerospace market decreased 3 percent to $194 million
in the recent fourth quarter from a year ago. Excluding surcharge
revenue, sales declined approximately 21 percent from the record level
a year ago. Reduced shipments of nickel-based alloys used in the
manufacture of jet engine components and structural applications and
titanium wire used in the manufacture of structural fasteners
contributed to the decline.
The lower aerospace sales from last year's record level partly
reflected customer inventory adjustments stemming from the robust
demand for nickel-based alloys and titanium coil that took place in
the second half of fiscal 2006. This resulted in reduced purchases by
customers throughout fiscal 2007.
The reduced sales to the aerospace market also reflected a decline
in business with a key customer, who is now procuring some of its
material needs from a recently acquired subsidiary. This accounted for
approximately one-third of the decline in sales to the aerospace
market in the quarter.
Medical market sales decreased 5 percent to $36 million from last
year's fourth quarter. Adjusted for surcharge revenue, sales declined
17 percent. The decline mostly reflected continuing inventory
adjustments taking place within the supply chain for titanium and
specialty alloy materials.
Geographically, sales outside the United States increased 15
percent from the same quarter a year ago to $169 million.
International sales, which represented 30 percent of total sales,
benefited from pricing actions and increased sales to the energy
market.
Fourth quarter gross profit improved to a quarterly record $128.8
million, or 23.0 percent of sales, from $126.6 million, or 28.1
percent of sales, in the same quarter a year ago.
The increased gross profit was achieved despite the negative
impact from record high nickel prices throughout most of the quarter.
Nickel prices on the London Metal Exchange increased from an average
of approximately $9.04 a pound in the fourth fiscal quarter a year ago
to an average of $21.80 for this year's fourth quarter.
As a result of the rise in nickel prices, the Company's recent
fourth quarter surcharge revenue increased to approximately $177
million or 170 percent more than a year ago. The Company's surcharge
mechanism is structured to recover high raw material costs. While the
surcharge protects the absolute gross profit dollars over time, it
does have a dilutive effect on gross margin as a percent of sales. In
the recent fourth quarter, the dilutive effect on the gross margin
from the increased surcharge amount versus a year ago was
approximately 570 basis points.
Additionally, Carpenter's gross profit was negatively impacted by
the lag effect in its surcharge mechanism. This lag effect can result
in additional margin decline during periods of rapidly escalating raw
material prices. The Company estimated that the lag effect negatively
impacted the gross margin by approximately 40 basis points during the
recent fourth quarter.
Adjusted for the dilutive effect of the surcharge and the negative
impact from the lag in the surcharge mechanism, the gross margin would
have improved by approximately 100 basis points in the recent fourth
quarter from a year ago. The underlying improvement was largely driven
by a richer mix and ongoing cost controls.
Record quarterly operating income of $92.4 million or 16.5 percent
of sales, was achieved in the fourth quarter. This compared to
operating income of $90.9 million or 20.2 percent of sales in the
fourth quarter a year ago. The record level of operating income was
achieved despite significantly higher raw material costs as a result
of a richer product mix and ongoing cost controls. Adjusted for the
increase in surcharge revenue and the lag effect, operating income as
a percent of sales would have been 21.0 percent or 80 basis points
more than a year ago.
Share Repurchase Program
During the quarter, Carpenter repurchased $15.0 million or 115,002
shares of its common stock on the open market. In total, Carpenter has
repurchased $28.9 million or 235,072 shares of its common stock on the
open market.
Carpenter anticipates to repurchase, under certain conditions, a
total of $250 million of its common stock.
Outlook
"We anticipate another year of record earnings for fiscal 2008,
despite some initial headwinds from continued supply chain adjustments
in the medical market and reduced sales to the industrial market,"
Stevens said. "We expect sales to the aerospace market will strengthen
in the second half of our fiscal year as a result of increasing demand
for nickel-based alloys used in engine and structural applications.
"Our focus on high performance materials leaves us well positioned
to capitalize on growth opportunities in our key end-use markets. We
are excited about our future and are making significant investments to
further deepen our commitment to growth in these markets," said
Stevens. "We will invest approximately $150 million in capital
expenditures in fiscal 2008 to support our customers as well as invest
in markets where we have significant opportunity based on our
portfolio of products."
Carpenter expects that cash flow from operations will approach
$300 million in fiscal 2008. The company anticipates that free cash
flow (cash from operations, less capital expenditures and dividends)
will be approximately $100 million.
Planned capital expenditures of approximately $150 million
includes almost $75 million associated with the Company's previously
announced $115 million expansion of its premium melt operations.
Additionally, the planned capital expenditures include approximately
$14 million related to the Company's previously announced upgrade of
its hot rolling facility.
Segment Results - Fourth Quarter
Specialty Metals
Net sales for the quarter ended June 30, 2007 for the Specialty
Metals segment, which includes Specialty Alloys Operations, Dynamet,
and Carpenter Powder Products business units, increased 26 percent to
$533.8 million, compared to $424.6 million in the same quarter a year
ago. Adjusted for surcharge, sales were essentially flat with a year
ago.
Stainless steel sales were $201.4 million or 39 percent higher
than a year ago. Excluding surcharge revenue, stainless steel sales
increased 18 percent. Increased shipments to the industrial market and
the sale of higher value stainless steels contributed to the growth.
Sales of specialty alloys were $270.2 million or 27 percent higher
than the fourth quarter a year ago. Adjusted for surcharge revenue,
sales declined 11 percent. Increased shipments to the energy market
were more than offset by reduced shipments to the automotive,
aerospace and medical markets.
Sales of titanium decreased 11 percent to $46.3 million. The
decrease reflected lower demand from both the medical and aerospace
markets as a result of ongoing inventory adjustments within those
supply chains.
Operating income for the Specialty Metals segment was $91.8
million or 17.2 percent of sales in the recent fourth quarter,
compared to $94.4 million or 22.2 percent in the same quarter a year
ago.
The decline in operating income primarily reflected reduced income
from titanium sales as a result of lower volume and declining market
prices.
In addition to reduced income from titanium sales, operating
income as a percent of sales for the Specialty Metals segment also
declined as a result of the dilutive effect of surcharge revenue. In
the recent fourth quarter, surcharge revenue totaled approximately
$177 million as compared to approximately $66 million in the same
quarter a year ago. Also, the lag effect in the Company's surcharge
mechanism negatively impacted margins due to the rapid escalation of
nickel prices that were sustained throughout most of the quarter.
Engineered Products Segment
Net sales for this segment, which includes sales of ceramic
components and fabricated metal, were $27.4 million compared to $26.3
million a year ago.
In the fourth quarter, operating income for the Engineered
Products segment was $4.8 million or 17.5 percent of sales compared to
$3.4 million or 12.9 percent of sales in the same quarter a year ago.
The improvement in operating income primarily reflected increased
sales and better operating efficiencies at Certech, which produces
ceramic cores used in the casting of turbine blades for jet engines
and industrial gas turbines.
Segment Results - Fiscal Year
Specialty Metals
Fiscal 2007 net sales for the Specialty Metals segment were $1.84
billion, compared to $1.47 billion for the previous fiscal year.
Adjusted for surcharge, sales increased 6 percent from a year ago.
Sales of stainless steel products grew 32 percent to $696.8
million from $528.1 million a year ago. Excluding surcharge revenue,
sales increased 11 percent. Stainless sales benefited primarily from
increased shipments to the industrial market and from the sale of
higher value products.
Sales of specialty alloys increased 27 percent to $895.6 million
from $703.8 million a year ago. Adjusted for surcharge revenue,
specialty alloys sales increased 2 percent. Growth in the energy
market and increased sales of higher value products were the primary
drivers of the sales growth which was partially offset by reduced
shipments to the aerospace and medical markets.
Titanium sales rose 6 percent to $187.7 million from $176.3
million a year ago. Sales benefited from increased shipments of
fastener wire to the aerospace market.
Operating income for the Specialty Metals segment was a record
$323.0 million or 17.6 percent of sales compared to $311.8 million or
21.3 percent a year ago. The change in operating income primarily
reflected the Company's continued focus on operational improvements.
Operating income as a percent of sales decreased due to the
dilutive effect on margins from the increase in surcharge revenue and
the negative impact from the lag effect of the Company's surcharge
mechanism.
Engineered Products Segment
Fiscal 2007 net sales for the Engineered Products segment
increased 3 percent to $105.7 million from $102.9 million for the same
period a year ago.
Operating income was $19.1 million or 18.1 percent of sales for
fiscal 2007 compared to $17.1 million or 16.6 percent of sales a year
ago. Increased volume and better operating efficiencies at Certech
were the primary drivers of the increase.
Other Financial Items
In the fourth quarter of fiscal 2007, selling and administrative
expenses were $36.4 million, or 6.5 percent of sales, compared to
$35.7 million, or 7.9 percent of sales, in the same quarter a year
ago.
For fiscal 2007, selling and administrative expenses were $133.9
million, or 6.9 percent of sales compared to $125.5 million, or 8.0
percent of sales a year ago. The increase primarily reflected $3.6
million related to executive separation obligations, $1.6 million
associated with the review of a possible acquisition, and $0.8 million
from executive recruitment fees.
Interest expense for the quarter was $5.6 million, compared with
$5.5 million in the fourth quarter a year ago. For fiscal 2007,
interest expense was $22.8 million, compared with $23.3 million a year
ago.
Other income in the quarter was $6.3 million, compared with $6.0
million in last year's fourth quarter. For fiscal 2007, other income
rose to $30.0 million from $21.7 million a year ago. The higher amount
reflected $8.4 million of increased interest income due to higher
investment balances in cash and marketable securities and $1.7 million
of increased receipts from the "Continued Dumping and Subsidy Offset
Act of 2000."
Carpenter's income tax provision in the recent fourth quarter was
$31.8 million, or 34.2 percent of pre-tax income, versus $23.4
million, or 25.6 percent, in the same quarter a year ago. The tax
provision in the fourth quarter a year ago reflected a favorable
impact of $5.0 million from a reduction in valuation allowances
related to state tax operating loss carry-forwards and additional U.S.
export incentives.
For fiscal 2007, Carpenter's income tax provision was $103.8
million, or 31.4 percent of pre-tax income, compared to $97.3 million,
or 31.5 percent of pre-tax income a year ago.
Conference Call
Carpenter will host a conference call and webcast today, July 26,
at 10:00 a.m., ET, to discuss financial results and operations for the
fourth quarter.
Please call 610-208-2800 for details of the conference call.
Access to the call will also be made available at Carpenter's web site
(www.cartech.com) and through CCBN (www.ccbn.com). A replay of the
call will be made available at www.cartech.com or at www.ccbn.com.
Carpenter produces and distributes specialty alloys, including
stainless steels, titanium alloys, and superalloys, and various
engineered products. Information about Carpenter can be found on the
Internet at www.cartech.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,
2006, its subsequent Form 10-Q, and the exhibits attached to those
filings. They include but are not limited to: 1) the cyclical nature
of the specialty materials business and certain end-use markets,
including aerospace, industrial, automotive, consumer, medical, and
energy including power generation, or other influences on Carpenter's
business such as new competitors, the consolidation of customers, and
suppliers or the transfer of manufacturing capacity from the United
States to foreign countries; 2) the ability of Carpenter to achieve
cost savings, productivity improvements or process changes; 3) the
ability to recoup increases in the cost of energy and raw materials or
other factors; 4) domestic and foreign excess manufacturing capacity
for certain metals; 5) fluctuations in currency exchange rates; 6) the
degree of success of government trade actions; 7) the valuation of the
assets and liabilities in Carpenter'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; and 11) the ability
of Carpenter to implement and manage material capital expansion
projects in a timely and efficient manner. Any of these factors could
have an adverse and/or fluctuating effect on Carpenter'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, and Section 21E
of the Securities Exchange Act of 1934, as amended. Carpenter
undertakes no obligation to update or revise any forward-looking
statements.
PRELIMINARY
CONSOLIDATED STATEMENT OF INCOME
(in millions, except per share data)
Three Months
Ended Year Ended
June 30 June 30
----------------- -------------------
2007 2006 2007 2006
--------- ------- --------- ---------
NET SALES $ 560.5 $450.5 $1,944.8 $1,568.2
Cost of sales 431.7 323.9 1,487.1 1,132.1
--------- ------- --------- ---------
Gross profit 128.8 126.6 457.7 436.1
Selling and administrative
expenses 36.4 35.7 133.9 125.4
--------- ------- --------- ---------
Operating income 92.4 90.9 323.8 310.7
Interest expense 5.6 5.5 22.8 23.3
Other income, net (6.3) (6.0) (30.0) (21.7)
--------- ------- --------- ---------
Income before income taxes 93.1 91.4 331.0 309.1
Income taxes 31.8 23.4 103.8 97.3
--------- ------- --------- ---------
NET INCOME $ 61.3 $ 68.0 $ 227.2 $ 211.8
========= ======= ========= =========
EARNINGS PER COMMON SHARE:
Basic $ 2.34 $ 2.66 $ 8.79 $ 8.33
========= ======= ========= =========
Diluted $ 2.33 $ 2.58 $ 8.63 $ 8.08
========= ======= ========= =========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
Basic 26.2 25.4 25.7 25.2
========= ======= ========= =========
Diluted 26.3 26.2 26.3 26.1
========= ======= ========= =========
Cash dividends per common share $ 0.30 $ 0.15 $ 0.975 $ 0.60
========= ======= ========= =========
PRELIMINARY
CONSOLIDATED STATEMENT OF CASH FLOWS
(in millions)
Year Ended
June 30
-----------------
2007 2006
-------- --------
OPERATING ACTIVITIES:
Net income $ 227.2 $ 211.8
Adjustments to reconcile net income to
net cash provided from operations:
Depreciation 47.1 45.8
Amortization 1.6 1.8
Deferred income taxes 5.7 (11.0)
Net pension expense 4.9 10.8
Net loss on asset disposals 1.3 1.0
Changes in working capital and other:
Receivables (63.9) (39.5)
Inventories (8.1) 3.6
Other current assets (4.5) 7.2
Accounts payable 77.8 4.0
Accrued current liabilities (14.6) 16.6
Other, net 0.6 (14.5)
-------- --------
Net cash provided from operating activities 275.1 237.6
-------- --------
INVESTING ACTIVITIES:
Purchases of plant, equipment and software (47.1) (19.3)
Proceeds from disposals of plant and equipment --- 1.0
Purchases of marketable securities (680.3) (411.8)
Sales of marketable securities 449.4 381.1
-------- --------
Net cash (used for) provided from investing
activities (278.0) (49.0)
-------- --------
FINANCING ACTIVITIES:
Payments on long-term debt (0.2) (0.2)
Payments to acquire treasury stock (28.9) ---
Dividends paid (25.7) (16.5)
Tax benefits on share-based compensation 7.7 8.0
Proceeds from common stock options exercised 4.2 15.0
-------- --------
Net cash (used for) provided from financing
activities (42.9) 6.3
-------- --------
Effect of exchange rate changes on cash and cash
equivalents (6.2) (1.6)
-------- --------
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (52.0) 193.3
Cash and cash equivalents at beginning of period 352.8 159.5
-------- --------
Cash and cash equivalents at end of period $ 300.8 $ 352.8
======== ========
PRELIMINARY
CONSOLIDATED BALANCE SHEET
(in millions)
June 30 June 30
2007 2006
------------ ----------
ASSETS
Current assets:
Cash and cash equivalents $ 300.8 $ 352.8
Marketable securities 372.7 141.8
Accounts receivable, net 303.2 234.7
Inventories 235.0 224.3
Deferred income taxes 13.3 13.7
Other current assets 30.7 32.0
------------ ----------
Total current assets 1,255.7 999.3
Property, plant and equipment, net 537.4 541.1
Prepaid pension cost 132.4 247.1
Goodwill 46.4 46.4
Trademarks and trade names, net 19.2 20.1
Other assets 34.6 33.9
------------ ----------
Total assets $ 2,025.7 $ 1,887.9
============ ==========
LIABILITIES
Current liabilities:
Accounts payable $ 215.9 $ 137.4
Accrued liabilities 117.1 133.8
Current portion of long-term debt 33.2 0.2
------------ ----------
Total current liabilities 366.2 271.4
Long-term debt, net of current portion 299.5 333.1
Accrued postretirement benefits 90.9 102.2
Deferred income taxes 143.5 189.0
Other liabilities 59.5 45.9
------------ ----------
Total liabilities 959.6 941.6
------------ ----------
STOCKHOLDERS' EQUITY
Convertible preferred stock --- 18.0
Common stock 136.4 132.5
Capital in excess of par value - common
stock 326.4 294.2
Reinvested earnings 751.3 549.8
Common stock in treasury, at cost (65.7) (37.3)
Deferred compensation --- (1.5)
Accumulated other comprehensive loss (82.3) (9.4)
------------ ----------
Total stockholders' equity 1,066.1 946.3
------------ ----------
Total liabilities and stockholders' equity $ 2,025.7 $ 1,887.9
============ ==========
PRELIMINARY
SEGMENT FINANCIAL DATA
(in millions)
Three Months
Ended Year Ended
June 30 June 30
--------------- -------------------
2007 2006 2007 2006
------- ------- --------- ---------
Net sales:
Specialty Metals $533.8 $424.6 $1,840.9 $1,467.1
Engineered Products 27.4 26.3 105.7 102.9
Intersegment (0.7) (0.4) (1.8) (1.8)
------- ------- --------- ---------
Consolidated net sales $560.5 $450.5 $1,944.8 $1,568.2
======= ======= ========= =========
Operating income:
Specialty Metals $ 91.8 $ 94.4 $ 323.0 $ 311.8
Engineered Products 4.8 3.4 19.1 17.1
Corporate costs (7.8) (9.6) (33.1) (28.2)
Pension earnings, interest &
deferrals 3.6 2.6 14.5 10.4
Intersegment --- 0.1 0.3 (0.4)
------- ------- --------- ---------
Consolidated operating income $ 92.4 $ 90.9 $ 323.8 $ 310.7
======= ======= ========= =========
Carpenter operates in two business segments, Specialty Metals and
Engineered Products. Specialty Metals includes our Specialty Alloys,
Dynamet and Carpenter Powder Products business operations. These
operations have been aggregated into one reportable segment because
of the similarities in products, processes, customers, distribution
methods and economic characteristics.
The service cost component of net pension expense, which represents
the estimated cost of future pension liabilities earned associated
with active employees, is included in the operating income of the
business segments. The residual net pension expense, which is
comprised of the expected return on plan assets, interest costs on
the projected benefit obligations of the plans, and amortization of
actuarial gains and losses and prior service costs, is included under
the heading "Pension earnings, interest & deferrals."
PRELIMINARY
SELECTED FINANCIAL MEASURES
(in millions, except per share data)
Three Months
Ended Year Ended
June 30 June 30
--------------- ---------------
FREE CASH FLOW 2007 2006 2007 2006
------- ------- ------- -------
Net cash provided from operations $128.4 $115.9 $275.1 $237.6
Purchases of plant, equipment and
software (19.3) (5.6) (47.1) (19.3)
Proceeds from disposals of plant and
equipment (0.2) 0.7 --- 1.0
Dividends paid (7.8) (4.1) (25.7) (16.5)
------- ------- ------- -------
Free cash flow $101.1 $106.9 $202.3 $202.8
======= ======= ======= =======
Free cash flow is a measure of cash generated which management
evaluates for alternative uses.
CONTACT: Carpenter Technology Corporation
Investor and Media Inquiries:
Jaime Vasquez, 610-208-2165
jvasquez@cartech.com