Titanium alloy maker Carpenter Technology Corp. (CRS: Quote), Tuesday said its fourth-quarter profit increased, as revenues grew on strong demand for Aerospace & Defense products. Both earnings and revenues for the quarter came in ahead of Wall Street estimates. Moving ahead, the company said it expects operating profit for the full year 2013 to improve at least 30 percent. Shares of Carpenter Technology rose six percent following the news.
Aerospace & Defense market sales rose 49 percent over last year as volume increased 105 percent, reflecting high airplane build rates.
Net sales for the quarter grew 33 percent to $643.7 million from $483.6 million last year. Analysts expected revenues of $628.05 million for the quarter.
Excluding surcharge revenue, net sales were $506.7 million, up 44 percent from a year ago with volume increasing 31 percent.
Chief Executive William Wulfsohn said, "Results were driven by solid execution of our strategies to grow premium product output while improving productivity, mix and pricing."
Wyomissing, Pennsylvania-based Carpenter Technology's fourth-quarter profit improved to $40.8 million or $0.77 per share from $25.5 million or $0.57 per share last year.
On an adjusted basis, earnings for the quarter were $0.88 per share. On average, seven analysts polled by Thomson Reuters expected earnings of $0.79 per share for the quarter. Analysts' estimates typically exclude special items.
"Looking forward, we are beginning our new fiscal year with strong momentum. Our business has remained resilient to recent global economic pressures. We are well positioned in growing end markets, and have low exposure to economically sensitive products and market segments, such as flat rolled stainless products," added Wulfsohn.
Financial Chief Douglas Ralph said the company expects operating income to increase at least 30 percent or $70 million in fiscal year 2013.
CRS is currently trading at $49.25 per share, up $2.85 or 6.14%, on a volume of 0.3 million shares on the NYSE.
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by RTT Staff Writer
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