Specialty alloy maker
Carpenter Technology Corp.
) saw its shares slip after it revealed its expected earnings for
second-quarter fiscal 2013 (ended December 31, 2012), which
lagged analysts' expectations.
Carpenter Technology said that it expects earnings of 61 cents to
62 cents per share for the quarter, up about 20% from the
year-ago earnings but below the earnings of 74 cents a share
recorded in first-quarter fiscal 2013. The predicted earnings
trailed the Zacks Consensus Estimate of 76 cents.
Weak results from the company's Performance Engineered Products
(PEP) division and soft demand for lower value mill products
contributed to the sequentially lower earnings in the second
The Pennsylvania-based company's shares fell roughly 7.5%
yesterday, reflecting the disappointing earnings view.
Carpenter Technology further noted that it expects net sales of
$431 million for the second quarter. That represents a 30% year
over year rise and around 2% sequential decline.
While Carpenter Technology saw strong demand for its
ultra-premium and premium products along with strength across its
aerospace and energy end markets, the prevailing economic
uncertainty hurt the demand for its low value product lines in
the second quarter.
The company also lowered its operating income growth target for
fiscal 2013 citing weakness in its PEP unit and softer demand for
lower value mill products. It now sees a 20%-30% year-over-year
rise (compared with 30% predicted earlier) in operating income
for the full year. The company will announce its second quarter
results on January 31.
Carpenter Technology makes specialty alloys, including stainless
steels, titanium alloys and superalloys primarily for the
aerospace and energy industries. It is a major player in the
metallurgy industry along with
Allegheny Technologies Inc.
Carpenter Technology currently retains a short-term Zacks Rank #3
ALLEGHENY TECH (ATI): Free Stock Analysis
CARPENTER TECH (CRS): Free Stock Analysis
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