Carpenter Powder Products, a unit of specialty alloy maker Carpenter Technology Corp. (CRS), recently said that it will raise the base prices for all Micro-Melt powder high speed and tool steel products by 7%. The move is effective for orders shipped on or after February 1, 2013. The company also noted that the existing monthly surcharges will remain in place.
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. (ATI). Carpenter Powder Products makes and distributes powder metal and wrought high speed and tool steel products.
Carpenter Technology is seeing strong demand for its ultra-premium and premium products, along with strength across its aerospace and energy end markets. The company, in October 2012, reported its first-quarter fiscal 2013 (ended September 30) results including a 65% year over year surge in its profit. Earnings per share of 74 cents came in line with the Zacks Consensus Estimate and exceeded last year's earnings of 53 cents.
Revenues clambered 32% year over year to $544.9 million, boosted by solid growth across the aerospace & defense and energy markets. Revenues from aerospace & defense surged 45% to $252.6 million on the back of strong demand for engine materials and higher airplane build rates. Energy sales surged 31% to $77.4 million driven by growth in oil & gas and the addition of the Specialty Steel Supply (SSS) energy distribution business.
Carpenter Technology remains on track to achieve 30% growth in its operating income in fiscal 2013. The company continues to expand its footprint across fast-growing overseas markets, while investing in capacity expansions in its core U.S. operation to meet increasing customer demand.
Carpenter Technology currently retains a short-term Zacks #3 Rank (Hold).Read the Full Research Report on ATI
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