Aug. 5, 2015
Carpenter's Full-Year Earnings Lag 2014
Carpenter Technology Corp., Reading, Pa., reported full-year net income of $58.7 million for its fiscal 2015, less than half what it reported in its prior fiscal year. Net sales for the year totaled $2.2 billion, a 2.4 percent increase from 2014.
"Our performance in fiscal year 2015 was below our expectations. However, we have taken actions that have yielded some early positive results and a markedly changed mindset,” said Tony Thene, Carpenter’s president and CEO. “Those actions supported $194 million of positive free cash flow generation in the second half of fiscal year 2015, which has been redeployed to purchase approximately $154 million of our shares to date.”
In its fourth quarter, Carpenter reported net earnings of $22.5 million, a 40.9 percent decrease from the same quarter in 2014. The results were an improvement from the $1.4 million loss posted in the prior quarter. Net sales during the fourth quarter totaled $558.0 million, a 7.7 percent decrease from fourth-quarter 2014 and 2.2 percent below the prior quarter.
"As we look to the first quarter of fiscal year 2016, the significant decline in the energy market remains a primary concern. This weakness will amplify the seasonal volume decline we typically experience in the first fiscal quarter of each year,” Thene said.