Tuesday, Carpenter Technology Corp. (CRS), a provider of specialty alloys, reported that its profit for the second quarter decreased sharply from the previous year quarter impacted by a 27% decline in revenues and a non-cash pension expense.
Carpenter Technology recorded second-quarter net income of $3.5 million or $0.08 per share, compared to $29.8 million or $0.68 per share a year ago.
On average, eight analysts polled by Thomson Reuters expected the company to report a loss of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales decreased to $263.8 million from $361.8 million last year, down 27%. Excluding surcharge revenue, net sales were $207.3 million, 24% lower than last year. Analysts expected the company to report revenues of $266.83 million for the quarter.
Second quarter results included non-cash net pension expense of $0.21 per share versus $0.06 per share in the same quarter last year. The company had $6.9 million in positive free cash flow for the quarter.
Gregory Pratt, chairman and interim president and chief executive officer said, "We are encouraged by the early signs of momentum we are seeing in certain segments of our business. This strengthens our conviction that volume, revenue and margin will continue to grow as the second half of our fiscal year progresses."
Aerospace market sales were $113.5 million in the second quarter, down 28% compared with the same period a year ago. Industrial market sales were $62.3 million, down 26% compared with the second quarter of fiscal 2009. Consumer market sales were $24.4 million, a decrease of 10% from the second quarter of fiscal 2009.
Automotive market sales were $23.0 million, a decrease of 14% from a year earlier. Energy market sales of $20.3 million represented a decline of 50% from the second quarter a year earlier. Medical market sales were $20.3 million in the second quarter, a decline of 22% from a year ago.
For the six-month period, the company posted net loss of $5.9 million or $0.14 per share, compared to net income of $55.6 million or $1.26 per share in the previous year. Net sales declined to $497.5 million from $775.4 million a year ago.
CRS is traded at $29.95 up $0.86 or 2.96% on the NYSE.
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