Reported Earnings Per Share $0.18 Per Share or
$0.26 Adjusted for Restructuring Charges and Special Items
Carpenter Technology Corporation (NYSE:CRS) today announced
financial results for the quarter ended September 30, 2015.
Carpenter reported net income of $8.9 million or $0.18 per diluted
share. Excluding restructuring charges and special items, earnings
per share would have been $0.26 per diluted share in the quarter.
This compares to a reported net income of $13.5 million or $0.25
per diluted share in the same quarter last year.
Financial Highlights
($ in millions) |
Q1 |
|
Q1 |
|
Q4 |
|
FY2016 |
|
FY2015 |
|
FY2015 |
Net Sales |
$ |
455.6 |
|
|
$ |
549.8 |
|
|
$ |
558.0 |
|
Net Sales Excluding
Surcharge (a) |
$ |
385.1 |
|
|
$ |
440.1 |
|
|
$ |
463.0 |
|
Operating Income |
$ |
24.8 |
|
|
$ |
22.1 |
|
|
$ |
39.5 |
|
Net Income |
$ |
8.9 |
|
|
$ |
13.5 |
|
|
$ |
22.5 |
|
Free Cash Flow (a) |
$ |
6.6 |
|
|
$ |
(53.5 |
) |
|
$ |
106.7 |
|
|
|
|
|
|
|
(a)
non-GAAP financial measure explained in the attached tables |
|
Comment
“Overall I am encouraged by how the team has responded to the
industry challenges in the quarter,” said Tony Thene, Carpenter’s
president and chief executive officer. “As we signaled in our most
recent public comments, the weakness in the Energy end-use market
continues to impact our sequential volume and operating
performance. We have also seen this market weakness begin to affect
order patterns for customers in our Industrial and Consumer end-use
market. These challenges coupled with our normal seasonality,
resulted in a 15 percent sequential volume decline in the
quarter.
“We continued to drive operating cost improvements and reduce
overhead costs in our Specialty Alloys Operations (SAO) segment as
operating margins were relatively flat sequentially notwithstanding
the significantly lower volume. The cost improvement initiatives
are particularly important in this environment of declining volumes
and will better position us to capitalize on the operating margin
benefits from these cost structure changes as the volumes
return.
“As expected, our Performance Engineered Products (PEP) segment
was impacted by the lower sequential demand in the current quarter
for Aerospace titanium fastener materials and powder products for
the Industrial and Consumer end-use market. The operating
income results of the Oil and Gas businesses in PEP were
sequentially flat as we continue to manage cost structure and take
appropriate actions as a result of the depressed activity in this
end-use market.”
Net Sales and Operating Income
Net sales for the first quarter of fiscal year 2016 were $455.6
million, and net sales excluding surcharge were $385.1 million, a
decrease of $55.0 million (or 12 percent) from the same quarter
last year, on 19 percent lower volume.
Operating income was $24.8 million, an increase of $2.7 million
from the first quarter of the prior year. Operating
income—excluding pension earnings, interest and deferrals (EID) and
restructuring charges and special items—was $32.6 million, an
increase of $8.1 million (or 33 percent) from the first quarter of
the prior year. These results reflect a stronger mix of products
within the SAO segment and lower operating costs which were
partially offset by lower overall volume.
Restructuring Charges and Special Items
The first quarter results include restructuring charges and
special items of $0.08 per diluted share, consisting of
restructuring costs, consulting fees and a discrete tax item as a
result of a decision to sell an equity method investment in
India.
Cash Flow
Cash flow from operations was $41.5 million in the first quarter
of fiscal year 2016, which included a $33.0 million increase in
inventory and a $20.5 million decrease in other working capital.
This compares to a cash flow from operations of $15.0 million in
the prior year’s first quarter, which included a $30.8 million
increase in inventory, an $11.8 million increase in other working
capital and $2.8 million of pension contributions. Free cash flow
in the first quarter of fiscal year 2016 was $6.6 million, compared
to negative $53.5 million in the same quarter last year. Capital
expenditures in the first quarter of fiscal year 2016 were $29.9
million, compared to $59.0 million in the prior year’s first
quarter.
Total liquidity, including cash and available revolver balance,
was $524 million at the end of the first quarter. This consisted of
$31 million of cash and $493 million of available borrowing under
the Company’s credit facility.
End-Use Markets
|
Q1 FY16 Sales* Ex. Surcharge (in Millions) |
|
Q1 FY16 vs. Q1 FY15 |
|
Q1 FY16 vs. Q4 FY15 |
Aerospace and Defense |
$ |
187.0 |
|
|
|
3 |
% |
|
|
-14 |
% |
Energy |
|
32.0 |
|
|
|
-53 |
% |
|
|
-38 |
% |
Transportation |
|
36.6 |
|
|
|
19 |
% |
|
|
10 |
% |
Medical |
|
25.0 |
|
|
|
-6 |
% |
|
|
-23 |
% |
Industrial and Consumer |
|
74.7 |
|
|
|
-24 |
% |
|
|
-22 |
% |
|
|
|
|
|
|
* Excludes
sales through Carpenter’s Distribution businesses |
Aerospace and Defense
- Sequential results reflect normal seasonal impacts and supply
chain adjustments for titanium fastener material
- Sales of engine materials were up modestly year-over-year
- Sales of structural materials were up year-over-year on
stronger volume and improved mix
- Defense material sales were up year-over-year with continued
spending on supported programs
Energy
- The North American quarterly average directional and horizontal
rig count was down 51 percent year-over-year
- SAO Oil and Gas revenue was down 42 percent sequentially and 51
percent year-over-year
- PEP Oil and Gas revenue was down 24 percent sequentially and 65
percent year-over-year
Transportation
- Position gains on engine fasteners, valve and fuel system
applications drove a richer sales mix year-over-year
- Increasing fuel efficiency standards are driving global demand
growth for Carpenter's materials
- North American light vehicle and heavy duty truck production is
forecasted to hit near-record levels
Medical
- Medical market sales were down year-over-year due to pricing
pressure on transactional business for titanium and stainless steel
materials
- Demand remains steady for premium grade titanium, nickel and
cobalt materials — supported by long term agreements
Industrial and Consumer
- Economic headwinds have reduced demand across the industrial
distribution market
- Depressed Oil and Gas markets have negatively influenced
year-over-year downstream demand for materials used in industrial
components and related processing equipment
Outlook
Mr. Thene added, “As we move further into fiscal year 2016, we
currently expect the second quarter volumes to be in-line with the
recent first quarter. We also expect increased volume in the
second half of fiscal year 2016 versus both prior year period and
the first half of fiscal year 2016, driven by an increase in
Aerospace demand and further opportunities in the Transportation
end-use market. In addition, we will continue our focused
efforts to drive further operating cost improvements and pursue
initiatives to improve working capital. We remain committed
to prioritizing our cash deployment to execute against the share
repurchase program.”
Conference Call and Webcast Presentation
Carpenter will host a conference call and webcast presentation
today, October 22 at 10:00 a.m. ET, to discuss the financial
results and operations for the fiscal first quarter. Please call
610-208-2222 for details. Access to both the call and webcast
presentation will also be available at Carpenter’s website
(http://www.cartech.com), and a replay of the call will soon be
made available at http://www.cartech.com. Presentation materials
used during this conference call will be available for viewing and
download at 8:00 a.m. ET today, at http://www.cartech.com.
Non-GAAP Financial Measures
This press release includes discussions of financial measures
that have not been determined in accordance with U.S. Generally
Accepted Accounting Principles (GAAP). A reconciliation of the
non-GAAP financial measures to their most directly comparable
financial measures prepared in accordance with GAAP, accompanied by
reasons why the Company believes the non-GAAP measures are
important, are included in the attached schedules.
About Carpenter Technology
Carpenter produces and distributes premium alloys, including
special alloys, titanium alloys and powder metals, as well as
stainless steels, alloy steels and tool steels. Information about
Carpenter can be found at http://www.cartech.com.
Forward-Looking Statements
This presentation contains 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, 2015 and the exhibits attached to that
filing. They include but are not limited to: (1) the cyclical
nature of the specialty materials business and certain end-use
markets, including aerospace, defense, industrial, transportation,
consumer, medical and energy, or other influences on Carpenter’s
business such as new competitors, the consolidation of competitors,
customers and suppliers, or the transfer of manufacturing capacity
from the United States to foreign countries; (2) the ability of
Carpenter to achieve cash generation, growth, earnings,
profitability, cost savings and reductions, productivity
improvements or process changes; (3) the ability to recoup
increases in the cost of energy, raw materials, freight 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; (11) the availability of credit facilities to
Carpenter, its customers or other members of the supply chain; (12)
the ability to obtain energy or raw materials, especially from
suppliers located in countries that may be subject to unstable
political or economic conditions; (13) Carpenter’s manufacturing
processes are dependent upon highly specialized equipment located
primarily in facilities in Reading, Latrobe and Athens for which
there may be limited alternatives if there are significant
equipment failures or a catastrophic event; (14) the ability to
hire and retain key personnel, including members of the executive
management team, management, metallurgists and other skilled
personnel; (15) fluctuations in oil and gas prices and production;
(16) the success of restructuring actions; and (17) share
repurchases are at Carpenter’s discretion and could be affected by
changes in Carpenter’s share price, operating results, capital
spending, cash flows, inventory, acquisitions, investments, tax
laws and general market conditions. 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 STATEMENTS OF INCOME |
(in millions, except per share data) |
(Unaudited) |
|
|
|
|
|
Three Months Ended |
|
|
September 30, |
|
|
2015 |
|
2014 |
|
|
|
|
|
NET SALES |
|
$ |
455.6 |
|
|
$ |
549.8 |
|
Cost of sales |
|
387.0 |
|
|
480.7 |
|
Gross profit |
|
68.6 |
|
|
69.1 |
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
43.4 |
|
|
47.0 |
|
Restructuring
charges |
|
0.4 |
|
|
— |
|
Operating income |
|
24.8 |
|
|
22.1 |
|
|
|
|
|
|
Interest expense |
|
(6.6 |
) |
|
(7.0 |
) |
Other (expense) income,
net |
|
(2.1 |
) |
|
4.9 |
|
|
|
|
|
|
Income before income
taxes |
|
16.1 |
|
|
20.0 |
|
Income tax expense |
|
7.2 |
|
|
6.5 |
|
|
|
|
|
|
NET INCOME |
|
$ |
8.9 |
|
|
$ |
13.5 |
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE: |
|
|
|
|
Basic |
|
$ |
0.18 |
|
|
$ |
0.25 |
|
Diluted |
|
$ |
0.18 |
|
|
$ |
0.25 |
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING: |
|
|
|
|
Basic |
|
49.7 |
|
|
53.5 |
|
Diluted |
|
49.9 |
|
|
53.7 |
|
|
|
|
|
|
Cash dividends per
common share |
|
$ |
0.18 |
|
|
$ |
0.18 |
|
PRELIMINARY |
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(in millions) |
(Unaudited) |
|
|
|
|
|
Three Months Ended |
|
|
September 30, |
|
|
2015 |
|
2014 |
OPERATING
ACTIVITIES: |
|
|
|
|
Net income |
|
$ |
8.9 |
|
|
$ |
13.5 |
|
Adjustments to reconcile net income
to net cash provided from operating activities: |
|
|
|
|
Depreciation and amortization |
|
29.9 |
|
|
30.3 |
|
Deferred income taxes |
|
(1.0 |
) |
|
2.6 |
|
Net pension expense |
|
13.4 |
|
|
11.5 |
|
Stock-based compensation
expense |
|
2.7 |
|
|
2.5 |
|
Net loss on disposals of property
and equipment |
|
0.1 |
|
|
— |
|
Changes in working capital and
other: |
|
|
|
|
Accounts receivable |
|
24.4 |
|
|
16.2 |
|
Inventories |
|
(33.0 |
) |
|
(30.8 |
) |
Other current assets |
|
(4.8 |
) |
|
(6.3 |
) |
Accounts payable |
|
2.5 |
|
|
1.3 |
|
Accrued liabilities |
|
(1.6 |
) |
|
(17.2 |
) |
Pension plan contributions |
|
— |
|
|
(2.8 |
) |
Other postretirement plan
contributions |
|
(3.4 |
) |
|
(3.6 |
) |
Other, net |
|
3.4 |
|
|
(2.2 |
) |
Net cash provided from operating
activities |
|
41.5 |
|
|
15.0 |
|
|
|
|
|
|
INVESTING
ACTIVITIES: |
|
|
|
|
Purchases of property, equipment
and software |
|
(29.9 |
) |
|
(59.0 |
) |
Proceeds from disposals of property
and equipment |
|
— |
|
|
0.1 |
|
Proceeds from insurance claim |
|
4.0 |
|
|
— |
|
Net cash used for investing
activities |
|
(25.9 |
) |
|
(58.9 |
) |
|
|
|
|
|
FINANCING
ACTIVITIES: |
|
|
|
|
Dividends paid |
|
(9.0 |
) |
|
(9.6 |
) |
Purchases of treasury stock |
|
(45.9 |
) |
|
— |
|
Payments on seller financed debt
related to purchase of software |
|
(1.2 |
) |
|
— |
|
Tax benefits on share-based
compensation |
|
— |
|
|
0.1 |
|
Proceeds from stock options
exercised |
|
0.1 |
|
|
0.7 |
|
Net cash used for financing
activities |
|
(56.0 |
) |
|
(8.8 |
) |
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
1.0 |
|
|
(1.3 |
) |
|
|
|
|
|
DECREASE IN CASH AND
CASH EQUIVALENTS |
|
(39.4 |
) |
|
(54.0 |
) |
Cash and cash
equivalents at beginning of period |
|
70.0 |
|
|
120.0 |
|
|
|
|
|
|
Cash and cash
equivalents at end of period |
|
$ |
30.6 |
|
|
$ |
66.0 |
|
PRELIMINARY |
CONSOLIDATED BALANCE SHEETS |
(in millions) |
(Unaudited) |
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
|
2015 |
|
2015 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
30.6 |
|
|
$ |
70.0 |
|
Accounts receivable, net |
|
278.9 |
|
|
304.1 |
|
Inventories |
|
686.7 |
|
|
655.8 |
|
Deferred income taxes |
|
8.1 |
|
|
3.3 |
|
Other current assets |
|
42.7 |
|
|
37.2 |
|
Total current assets |
|
1,047.0 |
|
|
1,070.4 |
|
|
|
|
|
|
Property, plant and
equipment, net |
|
1,389.6 |
|
|
1,397.0 |
|
Goodwill |
|
257.2 |
|
|
257.4 |
|
Other intangibles,
net |
|
69.6 |
|
|
71.6 |
|
Other assets |
|
107.7 |
|
|
109.5 |
|
Total assets |
|
$ |
2,871.1 |
|
|
$ |
2,905.9 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
165.4 |
|
|
$ |
169.5 |
|
Accrued liabilities |
|
159.0 |
|
|
152.6 |
|
Total current liabilities |
|
324.4 |
|
|
322.1 |
|
|
|
|
|
|
Long-term debt |
|
611.0 |
|
|
607.1 |
|
Accrued pension
liabilities |
|
338.9 |
|
|
334.1 |
|
Accrued postretirement
benefits |
|
109.5 |
|
|
111.2 |
|
Deferred income
taxes |
|
149.2 |
|
|
146.5 |
|
Other liabilities |
|
60.9 |
|
|
59.0 |
|
Total liabilities |
|
1,593.9 |
|
|
1,580.0 |
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY |
|
|
|
|
Common stock |
|
276.2 |
|
|
276.2 |
|
Capital in excess of
par value |
|
268.6 |
|
|
266.6 |
|
Reinvested
earnings |
|
1,332.3 |
|
|
1,332.4 |
|
Common stock in
treasury, at cost |
|
(266.6 |
) |
|
(221.1 |
) |
Accumulated other
comprehensive loss |
|
(333.3 |
) |
|
(328.2 |
) |
Total stockholders' equity |
|
1,277.2 |
|
|
1,325.9 |
|
Total liabilities and stockholders'
equity |
|
$ |
2,871.1 |
|
|
$ |
2,905.9 |
|
PRELIMINARY |
SEGMENT FINANCIAL DATA |
(in millions, except pounds sold) |
(Unaudited) |
|
|
|
Three Months Ended |
|
September 30, |
|
2015 |
|
2014 |
Pounds sold (000): |
|
|
|
Specialty Alloys Operations |
56,814 |
|
|
70,120 |
|
Performance Engineered
Products |
2,956 |
|
|
3,034 |
|
Intersegment |
(1,348 |
) |
|
(1,408 |
) |
Consolidated pounds sold |
58,422 |
|
|
71,746 |
|
|
|
|
|
Net sales: |
|
|
|
Specialty Alloys Operations |
|
|
|
Net sales excluding surcharge |
$ |
301.6 |
|
|
$ |
324.1 |
|
Surcharge |
71.0 |
|
|
111.9 |
|
Specialty Alloys Operations net
sales |
372.6 |
|
|
436.0 |
|
|
|
|
|
Performance Engineered
Products |
|
|
|
Net sales excluding surcharge |
91.4 |
|
|
129.6 |
|
Surcharge |
0.1 |
|
|
0.3 |
|
Performance Engineered Products net
sales |
91.5 |
|
|
129.9 |
|
|
|
|
|
Intersegment |
|
|
|
Net sales excluding surcharge |
(7.9 |
) |
|
(13.6 |
) |
Surcharge |
(0.6 |
) |
|
(2.5 |
) |
Intersegment net sales |
(8.5 |
) |
|
(16.1 |
) |
|
|
|
|
Consolidated net sales |
$ |
455.6 |
|
|
$ |
549.8 |
|
|
|
|
|
Operating income: |
|
|
|
Specialty Alloys Operations |
$ |
41.1 |
|
|
$ |
24.6 |
|
Performance Engineered
Products |
(0.4 |
) |
|
9.7 |
|
Corporate costs (including
restructuring charges) |
(12.0 |
) |
|
(10.3 |
) |
Pension earnings, interest and
deferrals |
(4.8 |
) |
|
(2.4 |
) |
Intersegment |
0.9 |
|
|
0.5 |
|
Consolidated operating income |
$ |
24.8 |
|
|
$ |
22.1 |
|
The Company has two reportable segments, Specialty Alloys
Operations (“SAO”) and Performance Engineered Products (“PEP”).
The SAO segment is comprised of Carpenter's major premium alloy
and stainless steel manufacturing operations. This includes
operations performed at mills primarily in Reading and Latrobe and
surrounding areas in Pennsylvania, South Carolina and Alabama.
The PEP segment is comprised of the Company’s differentiated
operations. This segment includes the Dynamet titanium business,
the Carpenter Powder Products (CPP) business, the Amega West
business, the Specialty Steel Supply business, and the Latrobe and
Mexico distribution businesses. The businesses in the PEP segment
are managed with an entrepreneurial structure to promote
flexibility and agility to quickly respond to market
dynamics. It is our belief this model will ultimately drive
overall revenue and profit growth. The pounds sold data above
for the PEP segment includes only the Dynamet and CPP
businesses.
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
results of the business segments. The residual net pension
expense, or pension earnings, interest and deferrals (pension EID),
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 and is
included under the heading "Pension earnings, interest and
deferrals".
|
PRELIMINARY |
NON-GAAP FINANCIAL MEASURES |
(in millions, except per share data) |
(Unaudited) |
|
|
|
OPERATING MARGIN
EXCLUDING SURCHARGE, |
|
Three Months Ended |
PENSION EARNINGS,
INTEREST AND DEFERRALS, |
|
September 30, |
RESTRUCTURING CHARGES
AND SPECIAL ITEMS |
|
2015 |
|
2014 |
|
|
|
|
|
Net sales |
|
$ |
455.6 |
|
|
$ |
549.8 |
|
Less: surcharge
revenue |
|
70.5 |
|
|
109.7 |
|
Consolidated net sales
excluding surcharge |
|
$ |
385.1 |
|
|
$ |
440.1 |
|
|
|
|
|
|
Operating income |
|
$ |
24.8 |
|
|
$ |
22.1 |
|
Pension earnings,
interest and deferrals |
|
4.8 |
|
|
2.4 |
|
Operating income
excluding pension earnings, interest and deferrals |
|
29.6 |
|
|
24.5 |
|
|
|
|
|
|
Restructuring charges
and special items: |
|
|
|
|
Restructuring charges |
|
0.4 |
|
|
— |
|
Consulting costs |
|
2.6 |
|
|
— |
|
Operating income
excluding pension earnings, interest and deferrals, restructuring
charges and special items |
|
$ |
32.6 |
|
|
$ |
24.5 |
|
|
|
|
|
|
Operating margin |
|
5.4 |
% |
|
4.0 |
% |
|
|
|
|
|
Operating margin
excluding surcharge, pension earnings, interest and deferrals,
restructuring charges and special items |
|
8.5 |
% |
|
5.6 |
% |
Management believes that removing the impacts of raw material
surcharge from operating margin provides a more consistent basis
for comparing results of operations from period to period. In
addition, management believes that excluding the impact of pension
earnings, interest and deferrals, which may be volatile due to
changes in the financial markets, is helpful in analyzing the true
operating performance of the Company.
Management believes that removing the impact of costs associated
with restructuring and special items is helpful in analyzing the
operating performance of the Company, as these costs are not
indicative of ongoing operating performance.
ADJUSTED EARNINGS PER
SHARE EXCLUDING RESTRUCTURING CHARGES AND SPECIAL ITEMS |
|
Income Before Income Taxes |
|
Income Tax Expense |
|
Net Income |
|
Earnings Per Diluted Share** |
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2015, as reported |
|
$ |
16.1 |
|
|
$ |
(7.2 |
) |
|
$ |
8.9 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
Restructuring
charges |
|
0.4 |
|
|
(0.1 |
) |
|
0.3 |
|
|
0.01 |
|
Consulting costs |
|
2.6 |
|
|
(0.9 |
) |
|
1.7 |
|
|
0.03 |
|
Income tax item* |
|
— |
|
|
2.0 |
|
|
2.0 |
|
|
0.04 |
|
Total impact of
restructuring charges and special items |
|
3.0 |
|
|
1.0 |
|
|
4.0 |
|
|
0.08 |
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2015, as adjusted |
|
$ |
19.1 |
|
|
$ |
(6.2 |
) |
|
$ |
12.9 |
|
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
* Discrete
income tax charge recorded during the three months ended September
30, 2015 as a result of the decision to sell equity method
investment in India. |
** Impact
per diluted share calculated using weighted average common shares
outstanding of 49.9 million. |
Management believes that earnings per share adjusted to exclude
the impact of restructuring charges and special items is helpful in
analyzing the operating performance of the Company, as these costs
are not indicative of ongoing operating performance.
|
|
Three Months Ended |
|
|
September 30, |
FREE CASH FLOW |
|
2015 |
|
2014 |
|
|
|
|
|
Net cash provided from
operating activities |
|
$ |
41.5 |
|
|
$ |
15.0 |
|
Purchases of property,
equipment and software |
|
(29.9 |
) |
|
(59.0 |
) |
Proceeds from disposals
of property and equipment |
|
— |
|
|
0.1 |
|
Proceeds from insurance
claim |
|
4.0 |
|
|
— |
|
Dividends paid |
|
(9.0 |
) |
|
(9.6 |
) |
|
|
|
|
|
Free cash flow |
|
$ |
6.6 |
|
|
$ |
(53.5 |
) |
Management believes that the free cash flow measure provides
useful information to investors regarding our financial condition
because it is a measure of cash generated which management
evaluates for alternative uses.
PRELIMINARY |
SUPPLEMENTAL SCHEDULES |
(in millions) |
(Unaudited) |
|
|
Three Months Ended |
|
|
September 30, |
NET SALES BY END-USE
MARKET |
|
2015 |
|
2014 |
End-Use Market
Excluding Surcharge: |
|
|
|
|
Aerospace and defense |
|
$ |
187.0 |
|
|
$ |
180.7 |
|
Energy |
|
32.0 |
|
|
67.8 |
|
Transportation |
|
36.6 |
|
|
30.7 |
|
Medical |
|
25.0 |
|
|
26.7 |
|
Industrial and consumer |
|
74.7 |
|
|
98.6 |
|
Distribution |
|
29.8 |
|
|
35.6 |
|
|
|
|
|
|
Consolidated net sales
excluding surcharge |
|
385.1 |
|
|
440.1 |
|
|
|
|
|
|
Surcharge revenue |
|
70.5 |
|
|
109.7 |
|
|
|
|
|
|
Consolidated net
sales |
|
$ |
455.6 |
|
|
$ |
549.8 |
|
Media Inquiries:
William J. Rudolph, Jr.
+1 610-208-3892
wrudolph@cartech.com
Investor Inquiries:
Michael A. Hajost
+1 610-208-3476
mhajost@cartech.com
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